For years, Douglas Eze witnessed the same routine, the rich get richer and the poor get poorer. More than 20 years ago, he founded Largo Financial Services with a vision to equip individuals and small business owners with the education and guidance needed to achieve financial freedom. He has since gone on to write the book Creating Generational Wealth: What the Super Wealthy Know That You Need To Know. According to Eze, by adapting the very strategies that the wealthy use each day, anyone can get out of debt, build wealth and leave a lasting legacy, they just need to know the practical steps to do so.
What do you think is the biggest factor that prohibits individuals from building wealth?
Douglas Eze: It all comes down to a lack of knowledge. This is the biggest contributor to a lack of generational wealth and individuals’ inability to achieve financial freedom. My primary goal when working with any new client is to help them identify the areas they may be unknowingly throwing away money because they do not know they are doing that and Unnecessarily we can help them fix it by arming them with the tools to begin saving for their future. We advise clients on everything from minimizing their taxes to protecting their assets, mortgage payments, college funds, life insurance, and retirement planning. Our team takes a global and holistic approach to achieving financial freedom for their clients.
What do you consider to be the secret to building generational wealth?
Douglas Eze: There is no one single secret, in reality, achieving financial freedom is the culmination of a lot of little things. These little actions add up to big results and are the driving principles that I seek to instill in my clients each day.
For example, many people assume that they should always pay in cash as opposed to taking a loan. However, this might not be the best idea. There are some downsides to paying for a large expense in cash. When you front a huge sum of cash you are giving up the opportunity to earn interest on that money, we call this “stealing from your future self.” Instead, you can use your cash as collateral to borrow money from a financial institute at a lower rate, then take that cash and put it into an investment fund so it can begin making you money.
What are some other ways that people can begin their journey to financial freedom?
Douglas Eze: I encourage my clients to think outside of the box when protecting their assets. First, consider other alternatives for saving for retirement. For decades, the government has pushed contributions to 401ks, they do so because this directly benefits them! Individuals would be much better off investing money for retirement into a more secure fund that won’t be impacted by the market and could be accessed tax-free. Additionally, even young individuals would be wise to save in a properly structured cash value insurance policy. This is a great tool to “pack money.” That can now be used to invest when the right investment opportunity presents itself. Money in cash Value insurance policy is practically untouchable and is protected in some states from the IRS, creditors, lawsuits, and even divorce settlements.
What can someone do if they have too much debt to even consider planning for financial freedom?
Douglas Eze: This is one of the biggest misconceptions I see! You don’t have to be completely debt-free to start building wealth. Instead, we take a two-fold approach, helping them get out of debt, while also implementing strategies to accumulate wealth. By beginning a wealth-building strategy, you will not only be able to get out of debt quicker, but you’re also beginning to build towards your financial future, while simultaneously settling your past.
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