Why Wealth and Responsibility place a big role in the future

 

    

    Another great concept I always touch upon is how important understanding how wealth over time can make a big impact in the future, and no better way to demonstrate that then this "X-curve" concept. In the beginning when we are young, generally speaking, we are focused on creating more wealth for ourselves and how to grow it. At this rate we are more prone to more responsibilities, a simple example of this is, how to take care of our families at old age, mortgage, and kids in the future. We have such a big responsibility on our shoulders that we need to make sure that if anything were to happen, knock on wood, that our families, kids, and income are protected. We can't fully replace any human being, but we can only at least assure that our family can have the same living standard as it used to be for a period of time.

    In the future, this becomes the exact opposite, what we will be worrying most of is, who is going to take care of me? Now we start asking the question "If I live too long, what happens?" This is where generally most families will ask how to transfer my wealth into the next generation. As there is someones called the taxman or women that will come for the final "Estate tax" in Canada. This the final expense in which everyone needs to pay to the government before they move on. 

Questions to ponder about:

- What if I pass away to soon? will my family be taken care of if anything were to happen?

- What if I live too long? who is going to take care of me? 

- Do I know how to create a tax-free legacy for my future generation or donation to leave the world in a better place?