These HNWI play an important role in society as they hold at least 13% of the world’s wealth. They boost the country’s economy and support the local markets by investing in land, property, construction and development.
Some HNWI get to this stage and simply blow it all away and lose their spot in the millionaire’s club. Below are some strategies that have helped already existing wealthy individuals take control, preserve and grow their wealth.
Investing strategies for high net-worth individuals
Maintaining your wealth as an HNWI is as important as becoming a wealthy individual in the first place, if not more important. Wealthy individuals drop out of the millionaire’s club as frequently as they become wealthy and for them, it’s not a very nice thing.
Wealth preservation and growth is important for a few reasons but the main reasons are:
- A secure future for you and your offspring
- A secure Legacy
- And finally, peace of mind that the above will be and is accomplished.
Investment risk is something that HNWI need to take into consideration quite often, this is how they grow financially. Diversifying your investments will reduce risk in contrast to having a more concentrated investment position.
Truth be said, the greater the risk potential, usually the better the investment return, but when it comes to preserving and growing your wealth pool, high risks are not recommended as a strategy.
Consider the below for a better-investing strategy:
- Consider active vs passive management which means thinking about which markets to get involved in whether passively or actively.
- Consider your long term performance with a professional wealth advisor to improve your investment process with opportunities to boost your wealth further.
- Consider your livelihood by enjoying your life efficiently.
- Consider working with fellow wealth professionals who will help you implement the best possible investment strategies.
- Keep calm and never make rash investment decisions.