The Secrets to Becoming Wealthy

What are the secrets to becoming wealthy?  To become successful?  When it comes to obtaining and holding wealth? [i] The truth is there is not one secret formula to becoming wealthy and staying wealthy. There are many different avenues available for those seeking answers. However, many people use the tried-and-true method of saving and investing.

Almost anyone can save his or her money and then invest it wisely, which means that almost anyone can eventually obtain wealth.  What kinds of strategies do the wealthy employ when setting out to build and protect their wealth?

Marriage

First, those who accrue wealth tend to be married and they tend to stay married. In fact, according to one study, married people typically have about 10 times the assets of a single person by retirement age. Obviously, divorce can cripple one’s wealth as well; so being able to maintain one solid marriage is a huge benefit. The old adage, it’s cheaper to keep her/him is true.

But like many other good or important things, relationships often require work or effort.  But few endeavors will reap better long-term results.  Likewise, having only one home can aid in maintaining wealth. This is different than investing in real estate, which can be a good investment.  However, keeping a house not generating income and rarely used and often not a good way to build wealth.  Holding onto a home and passing it onto heirs will give it a new value and give the recipients a nice tax break.

Risk and Reward

The wealthy usually take risks. However, they do not gamble with their wealth. There is a difference. The investment world is full of risk as there are very few “sure things” and it takes educated and sound strategies to achieve successful investments. Safe investments usually pay off in the long run. On the other hand, while high-risk investments can be very lucrative, if they fail one can be left with almost nothing. So do take educated investment risks, but don’t gamble your wealth away with silly risks.

Financial Advice

Wealthy individuals almost always use financial advisors to help them protect their wealth. While many people think they can manage it themselves, trained professionals should offer insight and expertise to assist the wealthy in holding onto and increasing what they already have. Tax advisors, stock brokers and estate attorneys are a few examples of such expertise often required to protect and grow one’s wealth.

When considering employing any of these experts, particularly an investment advisor, due diligence is required.  If they express dissatisfaction with you asking good pertinent questions, perhaps considering someone else would be in your best interest.  Particularly when past history of success and confirmation thereof is requested and not supplied.  Here is one source on how to find investment information.  (we never sell nor recommend ANY investments.  We include this link solely as an example for this article.

These are a few of the disciplines that high net worth individuals use.

What are your secrets to becoming wealthy?  Above are a few, can you think of some that you personally can adopt to become wealthy?  It is also important to point out that wealth is not a requirement to be successful or happy.  One can be extremely wealthy and unhappy.  One can be extremely wealthy and feel they need more.  Some unfortunate souls never have enough, not enough wealth, prestige or recognition of such.  These are dangerous traps one should avoid at all costs.

But a healthy attitude about what wealth is, and a healthy discipline to work towards becoming wealthy are important, and should likely be discussed in another article.  More likely than not, most of us have a healthy relationship with wealth, and simply want to achieve it for some very good reasons such as security, family and to be able to help others.

We hope you found this article about the secrets to become wealthy helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

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Considerately yours,

GROCO, GROCO Tax, GROCO Technology, GROCO Advisory Services, GROCO Consulting Services, GROCO Relationship Services, GROCO Consulting/Advisory Services, GROCO Family Office Wealth, and GROCO Family Office Services.

[i] http://www.timesunion.com/business/article/Secrets-of-the-rich-and-smart-9178374.php