Market Update – April 2021
Federal Budget 2021



“Generation wealth” is wealth that is passed down from one generation to the next. You may also hear this called family wealth or legacy wealth. This wealth can come in many forms such as real estate assets, stock market investments, or a financial education to carry forward into the future.

Whether you have children, grandchildren, nieces, or nephews; or decide to leave part of your legacy to a charity or foundation, you may start to think about how their financial futures will play out. Imagine how differently things could turn out if you take the time to educate them on personal finance and set up vehicles to add security to their financial future now.

Below is a summary of ways to start preparing to leave a legacy of wealth behind:

INVESTMENT VEHICLE – creating tax effective investment structures paired with growth and income generating assets and regular investment plans. Consider family trust or a Private Ancillary Fund as a means to direct donations to your preferred charity.

LIFE INSURANCE – this provides the opportunity to protect your family in the event of your untimely passing. This topic is sometimes shied away from, but is an important consideration when looking to protect your wealth. Insurance may also be used for estate equalisation purposes.

EDUCATION – Teach the next generation about personal finance. It is estimated that 70% of families lose their wealth in the second generation and 90% lose it in the third. In many cases this can be prevented through financial education.

ESTATE PLANNING – Create or update your existing estate plan. This is absolutely essential in securing as easy transition of your assets in line with your testamentary wishes.

Building wealth to last for generations is no easy feat. After you have your own financial situation under control, safeguarding your family’s future is the next step.

Take the time to implement a wealth-building strategy that works for your family. Not everyone wants to invest in real estate or build a business, so find something that works for your situation.

Whatever strategy you choose, make sure to pass down your financial know-how to the recipients of your wealth. Armed with the personal finance knowledge you can provide; your beneficiaries will already be one step ahead of the game as they make their way into the world.








This newsletter has been prepared by Affinity Private Financial Services Pty Ltd  (Affinity), AFSL 522707 (ABN 64 639 980 724) and is intended as general information only.  In preparing this, Affinity has not taken into account any particular person’s specific circumstances, objectives, financial situation or needs. The information provided does not represent legal, tax, or personal advice and should not be relied upon as such. We recommend you obtain financial advice specific to your situation before making any financial investment or insurance decision.  Where a financial product is mentioned, you should always refer to the Product Disclosure Statement and seek personal financial advice prior to making an investment decision.  This newsletter contains links to third party websites over which Affinity has no control and while every care has been taken in reviewing this information, it may not remain current after the date of publication.