Think of wealth as a building with three pillars.
The first pillar of wealth building is “Real Property Assets” (your personal residence and investment real estate) because in general, real estate appreciates in value.
And once you own a home, you gain the potential to tap into your home equity, which means you may be able to borrow money using your home as security. Home equity gives people financial flexibility and options.
The second pillar is investments — for example, a retirement account where you have stocks and bonds.
And the third pillar, for many people, is entrepreneurship — owning a business of your own.
Note: For most people, 2/3 of family wealth is in the family home. Home equity can be a source of capital for all your wealth-building goals, and a home can be a significant legacy for the next generation.
For more information about real property assets, see the topic Buying a Home.
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