What’s the secret to success when it comes to obtaining and holding wealth? The truth is there isn’t one secret formula to become wealthy and stay wealthy. Chances are you will get a lot of different answers depending on whom you ask. However, it’s true that 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. So what kinds of strategies do the wealthy employ when setting out to build and protect their wealth?
First off, they 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 than single people by retirement age. Obviously, divorce can cripple your wealth as well; so being able to maintain one solid marriage will benefit your wealth. Likewise, having only one home can help you maintain wealth. Holding onto your home and passing it to your heirs will give it a new value and give the recipients a nice tax break.
The wealthy usually take risks. However, they don’t gamble with their wealth. There is a difference. The investment world is full of risk. There are very few “sure things” and it takes educated and sound strategies to make your investing successful. Safe investments usually pay off in the long run. On the other hand, while high-risk investments can be very lucrative, if they fail you can be left with almost nothing. So do take educated investment risks, but don’t gamble your wealth away with silly risks.
Wealthy individuals almost always use financial advisors to help them protect their wealth. While many people think they can manage it themselves, trained professionals can offer insight and expertise that will assist the wealthy in holding onto and increasing what they already have. These are a few of the secrets that high net worth individuals use to maintain their wealth. For more tips and advice please contact us at GROCO today.