Generational wealth-building doesn’t have to end at retirement. With smart planning and ingenuity, retirees can continue building wealth in ways that support their values, lifestyle and long-term goals.
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Here are five ways to build generational wealth, even in retirement.
Retirement doesn’t mean pausing growth — it’s a shift from earning through work to earning through strategy.
“A smart withdrawal strategy, like harvesting from stronger asset classes, helps you stay growing while managing risk,” said Heath Harris, a founding financial advisor at Compound Advisory.
Harris also said exploring low-effort business ventures can help retirees continue building wealth while minimizing risk and taxes.
“Also, a lot of retirees find ways to stay active: investing in low, time-cost businesses like a vetted franchise, keeping a stake in a business they know or getting involved in family projects,” Harris said. “You don’t have to work full-time to keep building wealth.”
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In addition, Harris said securities-backed lines of credit or collateralized accounts were underrated strategies for building generational wealth in retirement.
“They give you liquidity without forcing you to sell investments and trigger taxes — which can be a huge advantage if you need to jump on a business opportunity or handle an emergency,” Harris said. “Direct indexing, QCDs and tax-smart gifting strategies are also overlooked but powerful.”
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Accessory dwelling units (ADUs), often called “granny flats” or in-law suites, offer retirees a way to generate income and increase property value without selling off assets.
As part of a legacy strategy, an ADU can serve multiple roles — housing loved ones, supporting aging in place or becoming a long-term wealth-building tool through rental income.
“Many localities have recently relaxed their zoning regulations to allow homeowners to build these small, secondary homes on their property,” said Brandon Blakeley, chief technology officer at Mirador Living, which connects older adults with long-term care options.
“Some retirees choose to rent out the ADU for additional rental income while others move into the ADU themselves and rent out their primary home,” Blakeley said. “They get the financial upside of downsizing without the downside of having to move out [of] the neighborhood. Either way, this development offers a big boon to property values.”
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