Are you looking to expand your investment options beyond the traditional strategies? As a high net worth investor, you have access to unique alternative investment opportunities that can help grow your wealth even further.
High-net-worth investors are those with at least $1 million in investable assets. While many long-term investment strategies apply to everyone regardless of how big their portfolio, some strategies specifically benefit those who already have substantial money to work with.
At NJM Wealth Preservation Strategies, we work closely with high-net-worth investors to provide more than just a personalized portfolio. We make sure that as your life changes, your investment strategy adjusts and adapts, so it aligns with your changing needs.
If you have more than a million stashed away for retirement, check out these high-net-worth investing strategies that you can start utilizing today to maximize your money.
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Creating a comprehensive financial plan is crucial for high net worth individuals. As a high-net-worth investor, you need a solid financial plan to ensure your wealth is being managed effectively and efficiently actively working towards your long-term financial goals. A comprehensive financial plan helps you to:
Having a solid financial plan will ultimately help you make informed decisions, maximize the growth potential of your wealth, and maintain financial stability and security over the long-term.
Diversifying your stock portfolio is one of the most important steps retirees can take in order to invest and grow wealth. Mainly because diversifying your stocks helps to mitigate risk. When you invest in a variety of stocks, you reduce the impact of a decline in one particular stock or market sector.
For example, if you have investments in healthcare, technology, and consumer goods, a decline in one sector won’t negatively impact your overall portfolio. Instead, gains in other sectors can offset losses in one particular sector. Diversifying your portfolio can also help you achieve better returns. By investing in a variety of stocks, you can benefit from the growth potential of different industries and market sectors.
Furthermore, you can benefit from the growth potential of international markets by investing in international stocks. This can provide you with exposure to a wider range of industries and economies, which can help to further diversify your portfolio and reduce risk.
Remember to never make amendments to your stock portfolio before speaking with your trusted Fiduciary advisor at NJM.
Fixed income investments can be a good option for high-net-worth investors, but it depends on your individual financial goals & overall investment portfolio. Fixed income investments, such as bonds and bond funds, provide a reliable source of income through regular interest payments. They can offer stability and reduce overall portfolio volatility compared to equities. However, they generally have lower growth potential and may not keep up with inflation over the long term.
You may choose to include fixed income investments in your portfolios as a way to balance risk and provide a steady stream of income. However, it is important for you to consider your financial goals, risk tolerance, and overall investment strategy before making any investment decisions. It may also be useful for you to schedule a meeting with your financial advisor to develop a well-diversified investment portfolio that meets your specific needs and goals.
High-net-worth retirees can also consider alternative investments, such as hedge funds, private equity, and real estate. These investments can offer higher returns than traditional investments but also carry a higher degree of risk. Here are a few alternative investments to consider:
As mentioned, diversification also plays a role in investing for the long-term. You can do this by investing in high-quality stocks and bonds that have a long history of stability and growth.
Lastly, it's important to stay disciplined. There are many changes that will happen with the stock market over time. It's important to not let your emotions get in the way of how you invest. The best way to do this is to avoid short-term speculation and market timing strategies that can increase risk and reduce returns.
High-net-worth investors should consider using tax-efficient investments as part of their financial plan. This is because you generally have more investment assets and a higher level of income, which can result in a higher tax burden.
By using tax-efficient investments, you can potentially reduce your tax liability and increase the overall return on your investments.
Some tax-efficient investment options for high net worth individuals include:
It's important to keep in mind that every investor's tax situation is unique, and the most tax-efficient investment strategy will vary based on your individual circumstances.
As a retiree, or soon to be reitree, seeking professional investment advice is important for ensuring success of your investment portfolio. High net worth investors need an advisor for several reasons:
At NJM Wealth Preservation Strategies, we provide professional and customized guidance to help you achieve your financial goals, and provide ongoing support to manage your wealth effectively over the long term.
Whether you're looking to maximize your retirement income, grow your wealth, or simply ensure the stability of your investments & longevity of your portfolio for the sake of your heirs, we are here to help.
Contact us today to schedule a consultation and start your journey towards financial success.