What’s in a Name?
You’ve heard the names, probably more than once. Rockefeller, Vanderbilt, Kennedy, Bush… All names with multiple famous generations. Wealth that has lasted decades, in some cases centuries. They’ve gone from being simple last names passed down, to representing dynasty. And while one can look back at where these names got their start; oil, shipping, construction, bootlegging, that’s only part of the story. Many of us can look back on our own family trees and find a wealthy individual. But the question becomes, what happened? What it really comes down to is foresight, and taking the right action to create generational wealth. That is exactly what this article is about, exploring the generational wealth strategy used for, well, generations by the ultra-wealthy to create and maintain their dynasties.
Unbeknownst to most of us, we’ve been reading about this same strategy and investment since we were children. It has appeared in our history books, our biology books, and environmental science classrooms. Whether we look to Asia or Europe, ancient and modern civilizations have been built upon and run on one investment, one commodity, one asset class. By now, you may have guessed what that secret and not-so-secret investment could be. If you guessed timber, you hit the nail on the head.
Think about it. The term “old growth” is said with reverence. Old growth trees are rare, almost non-existent in Europe and much of North America. That is because of civilization’s unquenchable thirst and need for timber products. By the time the Europeans arrived in North America, most of Europe had been clear-cut. England was essentially treeless. The clearcutting of North America was a tragedy in many respects, but it’s impossible to deny that those who got there first and controlled those timber supplies came out very well ahead.
Of course, I’m not encouraging such practices. We’ve learned quite a bit about conservation and the environment since those days of exuberance. The Dust Bowl in the US is a great example of a lack of respect for the interconnected environmental systems around us. Thankfully, there are sustainable ways to capitalize on this important market, and many of the best timber investments are actually reforesting previously clear-cut areas. While the fact that many towns and cities are now surrounded by forests may suggest that there is no longer such a great demand for timber, that is in fact the opposite of what is happening worldwide. Despite the development of plastics and light metals such as aluminum, the demand for timber continues to rise correspondingly with the world’s population. Timber farming is now much more out of sight, and thus out of mind for many. And that’s how the ultra-wealthy want to keep it.
When watching investment programming, we are often presented with the “sexiest” options of the day. And that’s something that timber is not. Take teak for example. Used in furniture and boat construction, teak trees take 25 years to reach harvestable maturity. It’s not the easiest thing to get excited about on a day-to-day basis. There aren’t immediate returns, but that’s exactly the quality that makes it the perfect vehicle for generating dynastic wealth. Building a family takes time, years. And those who use their investments to plan for that future tend to be the most well-rewarded.
Of the timber investments available, teak stands apart due to its unique, irreplaceable natural qualities. No matter the technological advances, nothing has been able to replace the durability, water-resistance, or feel of teak. Investing now in this haven for the ultra-wealthy will yield returns in 25 years if investing in a newly planted farm. Imagine telling your kids in 25 years that they don’t have to worry about the soaring price of college, that they’re covered because of your foresight. Then you replant. 25 years later, you harvest and have the next two generations taken care of, in addition to your own retirement. And 25 years after that? You harvest, deed the land to your children, and have millions of dollars in a perpetual trust. That happens every 25 years into the future, and you can be the one who creates and protects that perpetual source of income for your family.
Though it takes time, the decision you make to invest in teak now can be the decision your future generations will point to when asking, “How did we get here?” How many people reading the newspapers in the early 20th century dreamt of being the Rockefellers? It wasn’t just about the fame and fancy parties, it was about knowing that their family name would be associated with security, with foresight. For centuries, timber has been the money tree of the world’s wealthiest. Of kings, titans of industry, of world-renowned institutions. That kind of success doesn’t happen overnight or without care. You could strike an oil well and be broke the next day if you’re not careful. It’s about smart investment and looking to the future. It’s about using financial structures to manage and protect your wealth, which in the case of teak literally grows out of the ground. Grow your family legacy with it.
We all want to leave our future generations better off than we had it. It’s one of the driving motivations for many of us to work as hard as we do. But the question has been asked of me before, “If teak’s so great, why isn’t everybody invested in it?” The best way to answer is to look at exclusive clubs and networking events. Members benefit from the separation, the exclusivity. If they let everyone in, then everybody could grow their wealth. Why would they want that? Timber is considered by many experts to be the smartest investment for generational wealth, but until recently has required vast investments to get a foot in the door. Now, companies like Teak Hardwoods are offering hectare parcels for $59,900. Suddenly, the playing field feels a bit more even. Now, middle-class families can build their own dynasty. If this is your first time hearing about teak as investment, or if you’re an experienced timber investor, explore this page and contact Teak Hardwoods to discuss how teak can be the foundation of your burgeoning family dynasty.