Latest news with #generational wealth
Forbes
4 days ago
- Business
- Forbes
Crafting A Family Legacy: A Financial Plan That Protects What Matters
If you want a blueprint for creating a family legacy, you must take a different route. Start by asking yourself one question: Why? Two couples walk into my office. Both are wearing the same brands of clothing, and are comparably dressed. Each pairing has roughly the same age, race, and educational background; from all appearances, you could guess they were clones of each other. And yet, when they each sit down to talk to me about financial planning, their situations could be miles apart. Anyone can come up with a basic financial plan that works for a family just by following common sense. But if you want something different—a blueprint for creating a legacy—you must take a different route. Start by asking yourself one question: Why? Those couples who hypothetically walked into my office may look the same, but their financial backgrounds and experiences can also be vastly different. This means their reasons for seeing me can be just as unique. So while I can give you a financial plan that explains how your future can be what you envision, the more important question I need answered is why. When you know why you want financial planning help, you can determine how to create that blueprint. Your reasons are going to be unique to you and your family. It could be about building generational wealth for your descendants so they can have financial freedom, or for ensuring your kids have a head start on their future, but your wealth does not fully subsidize it. Asking yourself why is a huge part of the process. The other part comes down to a topic I discuss extensively in my book, Values Over Valuables. What Are Your Values? Think for a moment about what having a legacy means to you. The word itself in its noun form is defined in a few different ways, but only two apply here: With the first definition, yes, your legacy is the wealth and goods you pass on to your family, and that's something I work on regularly. As for the second, this is the key. Your legacy can be the values you pass on to the following generations. This builds into something bigger than you or any stockpile of cash ever could become, and that's special. This also requires you to do some self-examination. What are your values? How do you share them with your family? Do you follow them all the time and use them as filters when you make decisions? Finding the answers to those questions will set you down the path to truly crafting a family legacy. How to Find Your Values This is oversimplifying things a bit. While it's easy for me to say you should go out and find your values, actually doing so is a little bit more complicated. I have a worksheet in my book that can help with the process. The first step is to find ten words that resonate with you. They're words like Balance, Independence, Humility, Respect, and so on. Once you find them, you should expand on those ideas. Why are they important to you, and what makes them valuable? Write all of this down on a piece of paper. Now have your family go through the same process. See what words you all have in common, and create a family values list. You can create core values out of this as well, which are the ones that, above all else, your family will always stick to. This is an enlightening process. By discovering the values you have in common with your family, you build a framework for how you live your lives. As your children grow, they will take these values with them and repeat the process with their own families. Some of them will take root and stick. Others may fall by the wayside. The result is a system unique to your family. Standing the Test of Time You've created a legacy—one that can last for decades, if not longer. It's a bit introspective, and it can create some friction. But in the end, your legacy is more than about money; it's about ideals and values. There's nothing more valuable than that.
Globe and Mail
14-07-2025
- Business
- Globe and Mail
2 Phenomenal AI Stocks That Can Create Generational Wealth
Key Points Nvidia's growth from AI data centers is far from over. Taiwan Semiconductor is a key supplier in the AI race. 10 stocks we like better than Nvidia › "Generational wealth" is a lucrative term for many investors. While it's nice to set yourself up for retirement, it's even better to leave your family and other loved ones a substantial amount of money that would significantly improve their lives as well. Many investors may be searching for the next stock that can achieve returns by a multiple of 100 to set up their families, but often it's the stocks that consistently deliver market-beating returns that can truly produce generational wealth. The long-term return for the market is around 10% per year. Let's say you can beat that return by a few percentage points -- call it 13% per year. If you start with $1 million, a 10% return transforms that into $17.5 million over 30 years. However, the 13% return translates to $39.1 million. That's a huge difference and underscores why beating the market by just a few percentage points each year is more important than finding the next 100-bagger. I have two stocks that I believe can deliver this level of outperformance over the next few years: Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing (NYSE: TSM). Both of these are huge beneficiaries of the buildout of AI computing capacity and have tremendous tailwinds in their favor. Nvidia Both Nvidia and Taiwan Semiconductor (TSMC for short) have benefited from the massive amount of AI spending going on. Nvidia's graphics processing units (GPUs) have become the industry standard for training and running AI models, despite numerous alternatives claiming they can do it better and cheaper. The reality is that its products are extremely flexible and can be used in multiple ways, whereas some of the alternatives that haven't caught on yet are focused on a single workload type. While the company experienced a growth setback in China due to the Trump Administration's change in export restrictions (which differed from the restrictions by the Biden Administration), Europe could fill the gap left in Nvidia's results. And domestically, it still has a ton of growth left, as AI hyperscalers are spending a record amount on data centers this year. That trend is likely to continue, according to a third-party estimate quoted by Nvidia that 2024's data center capital expenditures (capex) were $400 billion. However, they project that figure to rise to $1 trillion by 2028. Considering that the company generated $115 billion from data center sales in fiscal 2025 (encompassing most of 2024), this indicates that it captures around 29% of all such spending. Even if its market share fell to 20% and capex still hit $1 trillion, Nvidia would generate $200 billion in data center revenue by 2028. That indicates a compound annual growth rate (CAGR) of about 15%, far exceeding the mark necessary to surpass the market. Taiwan Semiconductor Manufacturing With all of the various competitors in the AI race, few of them have internal capabilities to produce chips. That work is farmed out to a handful of semiconductor foundries, with TSMC being the leader by far. Nvidia and many other notable names are its clients, and it has won this work through its constant innovation and by delivering unmatched production yields. And with TSMC's position within the industry, management has an excellent view into what the future holds. Chip orders are often placed years in advance, giving management clarity about demand. Over the next five years, it projects AI-related revenue will have a 45% CAGR. And since TSMC supports a wide range of industries beyond AI, its overall revenue CAGR is expected to reach nearly 20% over the next five years. That's still far greater than the stock market's 10% average annual return, making the company an excellent candidate to produce generational wealth. With Taiwan Semiconductor Manufacturing and Nvidia, investors should keep a close eye on their growth as we approach the end of the AI buildout cycle. This could cause them to lose their ability to reliably beat the market. However, we have barely scratched the surface of what's necessary for an AI-first world, and that could cause these two to soar for many years to come. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025
