Question

which financial decision would most likely create generational wealth?
a retired homeowner takes out a second mortgage on his home and invests in stocks
a business owner sets up a trust fund in his will to benefit his children after he passes away.
an employee declines to join his employers 401(k) and keeps his money in a savings account.
an entrepreneur creates a grant program to benefit small businesses in her hometown.
offers benefits that a standard will cannot, including avoiding probate and providing greater control over asset distribution
trust
will
generational wealth

Explanation:

• For the first question:
• A second mortgage for stock investment (option 1) is risky, especially for a retiree. Savings account (option 3) has low returns. A grant program (option 4) is for community benefit, not personal generational wealth. A trust fund (option 2) can transfer assets to children efficiently.
• For the second question:
• A trust offers benefits like avoiding probate and better asset - control, which a will (option 2) doesn't fully provide. Generational wealth (option 3) is a concept, not a legal instrument like a trust (option 1) which has the described features.

Answer:

First question: B. A business owner sets up a trust fund in his will to benefit his children after he passes away.
Second question: A. trust