Wealth transfer is a concept based on the recognition of a true wealth opportunity and how it is communicated to a specific target market. Although there are several methods and techniques to build and transfer wealth, not everyone is successful in doing so. For instance, even if you have a highly marketable service or product, you might not always be able to succeed in making a business out of it.
When in an economic recession, the form of your wealth becomes an important consideration in determining whether it is stable and viable. This is because certain aspects your wealth portfolio might become less valuable, especially if it’s not liquid. In other words, if you have a lot of equities, bonds and stocks or holdings in Wall Street, it’s likely that your net worth would fall if stock prices are falling.
It was recently predicted that within the next 10 years, household wealth in North America will double, creating more millionaires than at any point in history. The negative effect of this is that it will destroy the middle-class. There are major changes happening right now in the financial systems that will either make you really rich or poorer, depending on your investment decisions.
To illustrate, it can be noted that Carnegie, Rockefeller and other notably wealthy individuals through history had made their millions during times of economic transition. As the country was shifting from one wealth position to another, it created a lot of wealth opportunities and most of the richest people today are a result of this transition.
The world economy has gone through a downturn, and hence the above theory is likely to hold true. The world is now shifting from an industrial era to an information era with the Internet as its backbone. As a result, this shift should bring with it a huge transfer of wealth. Mastering this new way of transacting business over the Internet should give people access to opportunities for building wealth. However, the key skill seems to lie in profiting from the Internet through various means, such as online marketing and investing in viable business startups.
However, online marketing is still a young form of business. It has evolved, but it has to grow more. Furthermore, traditional marketing principles haven't been incorporated into it yet. In fact, it is now one of the best times to capitalize on this wealth opportunity. Marketing products and services online has become a mainstream activity from which rewards are only starting to pour in. It’s definitely one opportunity for building up wealth. It’s also an opportunity to transfer wealth from one form to another, particularly with regard to profiting from tangible goods being marketed in the virtual economy.
Additionally, wealth transfer opportunities and strategies are a foremost concern of moneyed individuals, given the current economic climate, with low interest rated coupled with lower asset values. Investors and businesspeople are trying to diversify holdings and assets to reduce tax liabilities, and therefore protect their net worth.
The market today is ripe for wealth transfer planning, with a changing economic and business landscape. The economic downturn is, after all, predicted to end sooner or later. Equity markets are beginning to rise from bearish runs in the past couple of years. Real estate assets have yet to see a rise, though. If you have heavily invested in some form of wealth or financial instrument, then the smart thing to do is to learn how to transfer this wealth into those assets, instruments or investments that would give you financial security in the long term.