MENU

Build your own family dynasty with these 4 wealth creators

Building a fortune’s no easy business, but buying quality dividend-paying stocks is a good way to start going about it. If managed properly any accumulated wealth can be passed onto future generations and the benefits of multi-generational investing mean you too can build a dynasty of wealth.

One drawback with American style dynasty (everlasting) trusts are estimates that such a trust setup by a couple with two children today, may have a rather unmanageable 3.4 million beneficiaries claiming an interest 500 years down the line!

However, with some proper legal advice and sensible stock selection the dynasty planning starts here.

Nowhere better to begin than the Commonwealth Bank of Australia (ASX: CBA), because truth be told, if it ever goes under we’re all done for! Analysts are predicting profit growth of 10% for financial year 2014 alongside an estimated $8.5 billion net profit.

Australia’s second oldest public company Washington H. Soul Pattinson and Co. (ASX: SOL) is a diversified investment business that has built substantial stakes in many businesses over time, including pharmaceuticals, commodities, materials, financial services, telecommunications and other equities. Its most recent star holding high-flying telco TPG Telecom Limited (ASX: TPM).

Incorporated in 1903 it’s a $3.6 billion advertisement as to why time in the market trumps everything else.

Woolworths Limited (ASX: WOW) is another business of such dominant scale its almost certain to be feeding Australians for many generations to come. With a rock solid balance sheet and perpetual growth runway it looks a perfect inter-generational investment.

As one of Australia’s most brilliant scientific companies Cochlear Limited’s (ASX: COH) life-changing hearing aid technology deserves the support of any philanthropic focused investors. Its futuristic products allow profoundly deaf people to hear for the first time, and this provides the base for a well supported destiny.

Foolish takeaway

Take care to choose companies that will stand the test of time and pay reliable incomes and you too can build a dynasty of perpetual wealth for future generations.

Get our top dividend stock for 2014 - FREE!

Interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2014."

Motley Fool contributor Tom Richardson has no financial interest in any company mentioned. You can find him on twitter @tommyr345

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.