4 Ways Career-Driven Professionals Can Turn Their Hard Work Into Generational Wealth
Written by
Sarah Li Cain
Edited by
Kristen Mae
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You’ve worked hard to get to where you are in your career, and you’re driven to climb even higher. You want not only to get to a point where you’re comfortable financially, but also to ensure that your children and future generations can reap the benefits of your wealth.
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Wealth isn’t just about being able to afford luxuries like a fancy car or international vacations. It’s having more than enough money so that you can set up the next generation for financial security. One of the best ways to do so is through strategic investing for long-term wealth accumulation.
Here are four strategies to turn your hard work into generational wealth.
Take Advantage of Employer Benefits
One major perk that some jobs offer is an employer-sponsored retirement account, such as a 401(k) or 403(b). Many employers also match up to a certain percentage of your contributions, essentially giving you free money. Think of the employer match as free money — not taking advantage of it would be like leaving part of your salary on the table.
Review your employee handbook or speak with HR to see whether your employer offers a match and how much they contribute. If you can, opt to contribute enough to max out the employer contribution amount — it’s one of the easiest ways to build wealth over time.
If you can’t afford to contribute that much right now, start with what you can and increase your contributions to the full max as soon as you can. If your goal is generational wealth, you’ll want not only to max out the employer match, but your overall 401(k) annual contribution amount, which for 2025 is $23,500.
Invest in Tax-Advantaged Accounts
Tax-advantaged accounts allow you to legally pay less in taxes, either now or in the future. Traditional IRAs and 401(k)s, for instance, let you contribute pre-tax dollars, which lowers your taxable income. You pay less income taxes now, and your investments grow tax-deferred, meaning you won’t pay taxes until you make withdrawals in retirement.
With a Roth IRA, you contribute post-tax dollars. Although you’re paying taxes upfront, your money grows tax-free and you won’t owe taxes on withdrawals, provided the account has been open for at least five years and you’re at least 59 ½ years old.
Diversify Your Portfolio
Putting all your money into a single stock — even if the company is doing well right now — is risky. Market fluctuations can cause a stock’s value to drop, potentially wiping out significant wealth. Instead, spreading your investments across multiple asset classes helps reduce risk.
Some ways you can diversify your portfolio include exchange-traded funds (ETFs) and index funds, which offer broad market exposure with lower risk than individual stocks; bonds and Treasury securities, which provide stability and consistent returns; and alternative assets, such as real estate or commodities, which can act as a hedge against stock market volatility.
Consider Investing in Real Estate
Although investing in real estate often requires significant upfront capital, it can serve as both a wealth-building asset and a passive income stream. Real estate has long been recognized as one of the most reliable ways to build wealth that spans generations.
You can purchase rental properties, where tenants provide you with ongoing income. You can choose between long-term leases or short-term rentals through platforms like Airbnb. Many investors also flip properties, buying homes, renovating them, and selling for a profit.
Before investing, be sure to do your research in the area where you plan to purchase a property so you can estimate potential income and expenses related to your investment. You’ll want to estimate rental income and factor in expenses such as property taxes, maintenance, and the cost of hiring a property manager.
Looking to build a legacy? Check out our Life to Legacy guide for expert advice and smart moves you can make today.
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