Financial planners sometimes make reference to generational wealth, but what do they actually mean when they mention it?

The definitions can vary somewhat, but generational wealth basically refers to having enough money that you can pass on some of it to the next generation once you are gone. Getting to that point successfully also means having enough to take care of yourself while you are around.

A great way to create that needed generational wealth is by investing in stocks that have great pasts and promising futures. These companies tend to be fundamentally strong in their markets and their balance sheets. They also tend to have a long history of growing earnings and they generate enough profits to issue dividends. The flow of income from their dividends can be reinvested, providing added benefit from the power of compounding interest.

Continue reading

Source Fool.com