Ultra-High Net Worth Individuals are those who have net worths of at least $30 million of shares in private and public companies, real estate, and personal investments. It’s easy to believe that secret investment strategies lead to such wealth but overall, the actual strategy is knowing how to make money work for you and taking calculated risks. Here are some of those strategies:
- Have a Strong Savings Strategy in Place. Invest and save wisely.
- Consider investment outside of Europe and the USA into emerging markets after doing your due diligence and evaluating how well that investment fits into your overall portfolio.
- Ignore Your Friends and Neighbors. Instead of gambling on Country Club Investment Gossip, stay focused on your own goals and needs. Your portfolio should be as unique as you are.
- Re-balance Your Portfolio from Time to Time. This is essential to achieving the right mix of stocks and bonds long term.
- Don’t Overlook Private Markets. Don’t rely only only on public markets. Private Equity Investments can generate high returns and add to your portfolio’s diversification.
- Invest In Physical Assets. Assets that are not liquid scare away small investors but are less likely to be affected by a volatile market. Private and commercial real estate, land, gold and certain types of artwork can have a big payoff long term.
For more information on this topic, you can listen to my podcast at: The Mark Perlberg CPA Podcast: EP 019 – Advanced Tax Strategies for High-Net-Worth Individuals with Kyle Candlish on Apple Podcasts
Key Takeaway
You don't have to choose between your financial goals. Start by taking advantage of available employer benefits, then balance your remaining savings between short-term priorities and long-term financial growth. Keep money needed in the near term in an appropriate low-risk option, and consider the tax implications before using long-term savings.
