Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
For all the hoopla about the upcoming $90 trillion “Great Wealth Transfer”, it appears likely that very few Americans will actually be on the receiving end of the massive inheritance pot. Research out of Northwestern Mutual shows a troubling mismatch of expectations.
While 38% of Gen Z anticipate they’ll receive an inheritance, only 22% of boomers plan to leave one behind. That’s a startling reality, given half of the survey’s respondents also said an inheritance would be critical for their long-term financial security.
If you’re among the majority who won’t be able to rely upon an inheritance, there are steps you can take today to build wealth for tomorrow.
It’s crucial to leverage the power of compound returns as soon as you can, because if your money isn’t being put to work while you sleep, it’s losing value. While it’s important to have cash set aside for emergency savings or money you’ll use in the short-run, cash isn’t always king. Cash is actually always at risk of deteriorating in value, unless you’ve got it in the right place.
This becomes particularly obvious when we look at the latest US inflation figures and across-the-board price rises. Consumer prices are currently 3.0% higher than last year, which is also 1.0% above the Federal Reserve’s 2.0% inflation target. There are simple ways to make sure you don’t end up surprised and unequipped for those rising costs.
No matter your age or in come level, having emergency funds set asideis especially crucial if you don’t have an inheritance coming your way. Make sure you have enough money set aside for several months of your expenses before you lock any cash away.
But just because you’re setting funds aside doesn’t mean you can’t earn interest on them too. With a high-yield savings account you can watch your money grow, while also being able to access and withdraw it at any time. That makes it much easier to get the cash back into your hands, if you ever should need it.
One way you can get a higher return on your investments is with the Wealthfront Cash Account, which can help you build an investment base through a combination of high-interest rates and ease of access.
A Wealthfront Cash Account can provide a base variable APY of 3.50%, but new clients can get a 0.65% boost over their first three months for a total APY of 4.15% provided by program banks on your uninvested cash. That’s over nine times the national deposit savings rate, according to the FDIC’s October report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
Trending: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
Once you’re comfortable with your emergency pot of savings, you can start looking at other ways to earn interest on your remaining funds.
One low-risk way to earn interest on your cash is with a certificate of deposit (CD).
Think of a CD as a savings account where you hold a fixed amount of money for a set amount of time. Shorter-term CDs, like those from six months to one year, would be suitable for the cash you aren’t yet ready to invest in the stock market.
Putting that money into a CD is helpful because you can typically access it sooner than you would if you were investing in the stock market. That’s because you should be prepared to part ways with your investment for at least five years in order to weather the ebbs and flows of the stock market.
CDs are different, as they’re usually accessible in a smaller amount of time, and they offer guaranteed returns – something the stock market can never provide.
But beware: if you withdraw the funds before the end of the CD’s term, you can face penalty feed.
The vast array of saving and investing options out there can seem overwhelming.
Whether you need help figuring out your investing strategy or simply want to mitigate the effects of inflation on your finances, consulting a professional can help you make sure you have a plan that equips you to protect the wealth you’re in the process of building.
Advisor.com can help you find the advice you’re looking for by connecting you with the right financial experts who understand your unique situation, and your financial goals for the future.
Their online platform is a streamlined way to find the best advisor for you and your needs. Once you select one of your advisor matches, you can schedule a free, no-obligation consultation to discuss your goals and develop strategies to secure your portfolio.
Young adults are almost twice as likely to live with their parents than 30 years ago, but that doesn’t necessarily mean they’ll inherit the property they call home. Plus, given 60% of US homeowners still have a mortgage, a property inheritance doesn’t always come without strings (and interest payments) attached.
And for most of American history, housing prices have increased at a slightly-higher rate than US inflation. Though, in periods such as the ‘Great Moderation’ (from 1990-2006), housing returns were even greater than stock market returns.
While that means real estate can be a good investment, it’s can be an expensive and often inaccessible one too.
The good news is there are plenty of ways to access real estate without forking out the money to buy a property outright.
For example, Arrived is another terrific example of how you can access the real estate market without having to purchase expensive property or assume the responsibilities of a landlord.
The easy-to-use platform has all sorts of SEC-qualified investments including rental homes and vacation rentals that are accessible regardless of your income.
It’s even backed by world class investors, from Jeff Bezos, CEO of Amazon, to Salesforce CEO, Marc Benioff — talk about a stamp of approval.
Start by browsing their curated selection of homes, which include insights into their appreciation prospects and income potential. Once you find the property you’re after, you simply choose the number of shares you want to buy, and invest.
If you are looking to make a larger investment, you aren’t limited to residential real estate investments.
A report by First National Realty Partners (FNRP) showed that during periods of market stress and downturn, high-quality commercial properties tend to be available at a discounted cost. That renders them an attractive investment for those looking to take advantage of below-market costs.
With FNRP, accredited investors can access institutional and commercial real estate investments – and the entire investment process can be done on their slick platform. You don’t need to do the hefty analysis required to pinpoint the best investment opportunities, FNRP’s team of experts does all the legwork for you.
FNRP offers shares of properties leased by big names like Whole Foods and Walmart — and you can enjoy the potential returns without having to worry about tenant or property management issues.
Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
If your retirement nest egg isn’t at the size you want it to be and you don’t have a large inheritance coming to you, gold can be your ‘safe haven’ to mitigate the impact of inflation.
Typically, it’s also more stable than stocks during economic downturns and recessions. In fact, gold has increased in value sevenfold over the last 100 years.
Another reason to invest in precious metals like gold is that they can provide significant tax advantages. This is especially important for retirement planning.
Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.
If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2025 gold investor bundle.
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
