What You Can Learn from Wealthy Investors
High-net-worth individuals may have more money to work with, but you can make the same money-smart moves, no matter your income.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Many people investing for the future—be it for retirement or to leave a legacy for their children—often look to the big-money folks to pick up tips on how to make their own investments lead to a greater net worth.
Though there may be differences in incomes between the haves and not-quite-haves—including how much each can afford to squirrel away each month—the basic goal remains the same: Maximize your earnings.
Known in financial circles as "high-net-worth clients," these folks really are no different than the rest of us, though they typically are defined as having a net worth of at least $1 million.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How did they get to, and stay, where they are? Here are some common traits of high-net-worth clients:
They are very good savers—in fact, robust savers.
They don't fall into the trap of "keeping up with the Joneses" in today's high-consumption economy. This isn't easy to do, but it's absolutely key if you want to build and keep wealth, and not fritter it away. "Budget" is sometimes seen as a negative word, but spending plans are something that can be used advantageously, no matter what your net worth is.
They don't put everything in the public markets.
Studies have shown that these families begin to move away from traditional mutual funds and into more individual investments as their net worth increases. They also use private equity, real estate investment trusts, annuities and other alternative investments.
They develop and stick with a detailed plan that will help them reach their unique goals.
High-net-worth investors typically have a clear idea of their strategy, something that seems to be elusive for lower-end investors. The high-enders have figured out who they are and what they have to do to reach their goal. That, actually, is not a new idea.
In 1750, Benjamin Franklin said: "There are three things extremely hard: steel, a diamond, and to know oneself."
And in the world of investing, knowing yourself and recognizing that you are different from every other investor can be the difference between success and failure.
For example, you have a risk tolerance that's unique to you. You also have specific goals for five, 10, 15 years down the road and beyond. High-net-worth individuals refuse to be derailed by changes in the economy, job changes, life changes or whatever lies in wait out there. Investing with less than an 18- to 24-month timeframe and constantly watching the ups and downs of the market can lead to bad decisions and results in the frantic and flawed "buy-high-sell-low" effect.
They work with financial professionals.
A trusted adviser can steer you away from investments that don't match your risk tolerance and serve as a reminder of the ultimate goals of the strategy. Most high-net-worth families rely on the advice of a trusted financial adviser for a myriad of life's decisions—whether it's something as small as buying a car or as substantial as deciding when to retire and how to best start drawing income.
My experience has been that, no matter the net worth of a client, they all need the same things: a customized financial strategy, good investment direction and comprehensive planning in taxes, estate, charitable giving, legacy creation and so on.
See? You aren't so different after all.
Joe Berry is an Investment Adviser Representative with the Semmax Financial Group in North Carolina. He is a licensed insurance agent in both property/casualty and life and also has passed his Series 65 securities exam. Berry recently completed the Series 3 securities exam to become qualified as a commodity trading adviser.
Advisory services offered through Semmax Financial Advisors Inc., a Registered Investment Adviser. Registration does not imply any particular level of skill. Insurance products and services offered through Semmax Inc. Tax services offered through Semmax Tax Inc.
This material is for informational purposes only. It is not intended to provide any investment advice or provide the basis for any financial decisions. Please consult a qualified professional before making decisions about your financial situation.
Keith Morelli contributed to this article.
-
How Much It Costs to Host a Super Bowl Party in 2026Hosting a Super Bowl party in 2026 could cost you. Here's a breakdown of food, drink and entertainment costs — plus ways to save.
-
3 Reasons to Use a 5-Year CD As You Approach RetirementA five-year CD can help you reach other milestones as you approach retirement.
-
Your Adult Kids Are Doing Fine. Is It Time To Spend Some of Their Inheritance?If your kids are successful, do they need an inheritance? Ask yourself these four questions before passing down another dollar.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
-
How to Get the Fair Value for Your Shares When You Are in the Minority Vote on a Sale of Substantially All Corporate AssetsWhen a sale of substantially all corporate assets is approved by majority vote, shareholders on the losing side of the vote should understand their rights.
-
How to Add a Pet Trust to Your Estate Plan: Don't Leave Your Best Friend to ChanceAdding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
Want to Avoid Leaving Chaos in Your Wake? Don't Leave Behind an Outdated Estate PlanAn outdated or incomplete estate plan could cause confusion for those handling your affairs at a difficult time. This guide highlights what to update and when.
-
I'm a Financial Adviser: This Is Why I Became an Advocate for Fee-Only Financial AdviceCan financial advisers who earn commissions on product sales give clients the best advice? For one professional, changing track was the clear choice.
-
I Met With 100-Plus Advisers to Develop This Road Map for Adopting AIFor financial advisers eager to embrace AI but unsure where to start, this road map will help you integrate the right tools and safeguards into your work.
-
The Referral Revolution: How to Grow Your Business With TrustYou can attract ideal clients by focusing on value and leveraging your current relationships to create a referral-based practice.
