Wealth Preservation & Growth: An Investment Guide for First-Generation Wealth Creators

Building wealth is an incredible achievement, especially for first-generation wealth creators. But once you’ve achieved financial success, the next challenge is ensuring that your wealth continues to work for you, your family, and future generations. At Luken Wealth Management, we believe that smart, strategic decision-making is key to long-term financial security. Here are some of the most common questions I hear from my clients—and the insights I share with them.

An Investment Guide: How do I ensure my wealth lasts for future generations?

The key to multi-generational wealth is a combination of financial discipline, structured estate planning, and intentional family education. When we work with clients we start by building a Wealth Roadmap, a plan that factors in their unique situations and goals. We approach financial planning like we would a marathon: Using the Wealth Roadmap you set the goal, set the date, and we create the program to get you from where you are now to the financial finish line. Just like wealth, running a marathon requires focus, a plan and resilience. And for first-generation wealth like you, success didn’t come from shortcuts—it came from persistence.

What’s the best way to invest my money to maintain and grow wealth?

The best investment strategy depends on your personal financial goals, time horizon, and risk tolerance. However, I always recommend a disciplined, mathematically based approach. Research has shown that markets spend most (approximately 80%) of their time declining and getting back to even. This reality makes it critical to have an investment methodology designed work for you by putting the probabilities on your side. Our approach has 3 rules:

1. Have a Plan for Up Markets

2. Have a Plan for Down Markets and

3. Have a Clear Way to Know the Difference Between Up and Down Markets

The Three Rules

Learn more about the book: Unleash Your Financial Super Powers How much risk should I take with my investments?

Risk tolerance is deeply personal and varies based on factors like age, financial goals, and your overall portfolio size. One of the biggest mistakes first-generation wealthy individuals make is being either too aggressive or too conservative with their investments. This is where the three rules comes in. Our  risk management strategy works to help ensure that your portfolio doesn’t spend excess time in decline and recovery, instead of creating new wealth.

What’s the best strategy to protect my wealth from inflation?

Inflation erodes purchasing power over time, which is why wealth preservation requires an inflation-conscious strategy. 

Historically, inflation has averaged around 3% to 4% per year in the U.S. This may not sound like much, but over the long term, even modest inflation rates can drastically alter your financial outlook.

For example, if you were to retire with $200,000 of annual income today, in 25 years, you would likely need about $512,660 to maintain the same lifestyle, assuming 4% inflation. 

Managing inflation risk requires a proactive approach. We work with clients to help ensure that their investments are properly aligned to outpace inflation over time. This means investing in assets that tend to outperform inflation, such as stocks and real estate.

Additionally, using tax-efficient strategies to preserve purchasing power and focusing on investments that adjust for inflation can provide an extra layer of protection. These strategies are essential to safeguarding your retirement income from the erosive effects of inflation. 

Final Thoughts

Managing wealth is about more than just growing your investments—it’s about safeguarding your legacy. By making informed, strategic decisions, you can ensure that your financial success benefits not only you but also future generations. At Luken Wealth Management, we specialize in helping first-generation wealth creators navigate the complexities of financial growth and preservation by creating an investment guide that fits their personal situation. If you’re ready to take control of your financial future, let’s start the conversation. Book a free consultation with the Luken Team

Greg Luken Founder, Luken Wealth Management

Investment Advisory Services are offered through Luken Investment Analytics, LLC (“LIA”). LIA is registered with the Securities and Exchange Commission (“SEC”) as an Investment Adviser. Registration does not constitute an endorsement of the firm nor does it indicate that the adviser has attained a particular level of skill or ability. This information is believed to be accurate, but is not warranted. It is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk. Past performance does not indicate future results. We do not offer legal or tax advice.