We would like to know what this entire wealth people do with his/her money? How come they keep on increasing their money while we still don’t have enough money? That’s because the rich people think differently than us a medium low income people. They also think on how to grow their money or easy word ‘investment’.
Credit Picture Nouveau Riche
The wealthy people have the power of money to spread their investment and could take control of opportunity to make their pocket get more money. In this entry, I’ll share some of the investment that wealthy people like to choose ;-
– Stocks are one ways for the rich people to allocate their equities. They have plenty of capacity and willingness to invest in stocks. It is a bit risky but could easily make a big profit with a coupon yield as low as a couple of percentage points. They put some of their money in bonds or similar assets and the rest could be allocated to stocks to grow wealth for heirs or other philanthropic purposes down the road.
– The bond can be made for income purposes and could minimize beyond to provide a sufficient annual income. They put several million dollars in fixed income assets to provide steady incomes. Municipal bonds also their choices given that tax rates can be high for wealthy.
- ALTERNATIVE INVESTMENT
– Other investment they can make is buying residential and commercial real estate. As they have power on money they don’t need to rely on loans or mutual funds to buy properties. The commercial properties such as office buildings and industrial complex spaces can easily make profit for them.
- PRIVATE EQUITY
– The wealthy people can buy the companies as most of us just can buy stocks or mutual funds. They can grow their wealthy by focusing on a single company that potential to growth. They might be able to acquire other firms and control the company.
- HARD ASSETS
– Hard asset need big money. For example, the wealthy people have opportunity to buy timber acreage or land with mineral rights or natural resources. They could take advantage of the asset to make more profit.
Source :- Investopedia
That’s how the wealthy people invest. They not worried about losing their money because they provide some reserve. It is because they have the ability to make a sizable investment and control the direction of a non profit to make it big for their wealth. Some of them could create their own endowments and hire staff to guide them to spend carefully.