Taking the time to re-think has become a key empowering concept for viewing the social and economic landscape. What seemed practical, workable, logical in the mid 1970’s when I first entered the job market has morphed into something unimaginable, and it is changing rapidly right before my eyes.  

Wealth Transfer

Take wealth transfer, as an example. The original concept was “Family Motivated.” Wealth facilitated comfort and enjoyment for family, friends and other beneficiaries during the lifetime of the wealth builder. With proper planning, it was passed along to children and grandchildren for generations. This motivation drove my desire to become the wealth builder of my family.

“Even if you did not come from a wealthy family, a wealthy family can come from you!”

I set my course. High school. College. Professional job. Hard work. I rose through the ranks during an era when returns on retirement accounts were at an all-time high. I was employed by a company that was purchased in 1966 by Warren Buffet. Wow! A recognized investment genius became the rocket booster to catapult me over to top. Right?

Well maybe. I accepted an early retirement package in 2007 at age 55. Then came the crash of 2008. I lost 40% overnight. The markets never recovered. Like many people my financial woes continued. Massive real estate losses and a couple of failed business ventures ensued. Where is the wealth to transfer to the next generation? For that matter, where are the provisions for the remainder of my life? After all, retiring at 55 could mean another 40 or so years of life to finance. Time to re-think.

Government Motivated Wealth Transfer

In the 1990’s, another Warren Buffet move helped me begin to re-think wealth transfer. I noticed what I call “Government Motivated” wealth transfer. He called the deregulation of the electric utility industry: “the greatest opportunity for wealth transfer of its time.  

A deregulated electricity market is a system in which a state separates the functions of electricity generation and supply from distribution. This allows consumers to choose their electricity provider from multiple retail electric providers (REPs). In this model, customers can select a plan from competing REPs, but the local utility still maintains the infrastructure for delivering electricity from the grid to the meter.  

Deregulation opened up opportunities for entrepreneurs to become Certified Independent Energy Advisors. It also builds profitable businesses by capturing profits that were once reserved for the utility companies, alone. Utility companies operated by first building an infrastructure. This infrastructure includes producing and gathering reserves of energy and the constructing the distribution systems to deliver energy to the consumer. They were then able to receive residual income monthly for every household using electricity.  

After deregulation, Retail Electric Providers REP’s were empowered to purchase energy in bulk (wholesale) and re-sell it. This creates a healthy competition which could drive down the cost to the consumer. Independent Energy Advisors were given the opportunity to tap into this vast market. (Which is currently $40B in just the state of Texas. Not to mention numerous other deregulated states and a few international markets.)

 Imagine getting certified to sell electricity. Offering customers a lower rate and earning a commission each month when they simply pay a bill. This opportunity is a great example of wealth being transferred from the big players to the small, entrepreneur and their families.

Community Motivated Wealth Transfer

Now I will move to what I believe is the most significant new trend in wealth transfer. I call it “Community Motivated” wealth transfer. Business minded individuals are collaborating to help consumers escape the “financial matrix”. This matrix is a system that has been deliberately designed to keep people trapped in financial bondage. Analogous to the fictional movie, The Matrix, the system is subtle, pervasive, and often invisible. It operates through debt, financial illiteracy, and consumerism. Consumer groups are rising up to provide financial literacy and subscription services. These will gradually de-fund mega industries and transfer wealth into the hands of loyal customers. Check out a few of the industries I have found that are offering opportunities for wealth transfer:

Cloud Storage. 

It is roughly a $930B industry controlled by the giants. However, recent innovations allow for the harnessing of excess computing power of individuals to lower the cost of cloud storage for small businesses and funnel some of the profits to individual. Now profits from big tech can be funneled to anyone with a computer. A major wealth transfer.

Credit Card System. 

The sum of fees charged to merchants combined with interest and late fees paid by consumers makes the credit card system a $300B industry. Innovative entrepreneurs have cracked the code by creating debit card systems that pay consumers while educating them to avoid the credit card system of debt.  

Certain Banking Services. 

Private banking systems are rising up to provide consumers with a good return on investment while allow them to direct how funds deposited with the bank are used, so that local communities are benefited.

Other Tech industries.  

Cell Phone ($500B), Internet ($2.32T) and Cable TV ($121.4B) industries are being restructured to allow consumers using the products to profit from their use.

Wellness. 

A growing industry that is breaking away from the health care and pharmaceutical industries (approximately $14T by some estimates) and forming consumer funded research and product development companies operating through distribution systems that provide profits for those using the products.

This discussion should provide motivation for all of us to put on our “re-thinking” caps and begin looking for ways to profit from the growing world of wealth transfer opportunities. The bad news is that one job, one business, one stream of income is no longer adequate to sustain us for a lifetime. Multiple streams of passive, residual income—are necessary to long term survival.  

The good news is that advances in technology combined with an explosion in entrepreneurial creativity is creating new opportunities at an exponential rate. Wealth transfer is for every willing recipient!

Read more of Gail’s article on Plaid or connect with her on her website.