What wealth do wealthy people have
5 things rich people do to keep them wealthy
- One financial planner says his multi-million dollar clients all do similar things to keep them wealthy.
- His richest clients have a forward-looking financial plan that they adhere to strictly.
- They are also looking for ways to save taxes and plan their retirement well in advance.
Most wealthy people manage to hold onto their wealth for the long term. But how do you do it? Patrick Rush, financial planner and chief executive of Triad Financial Advisors, says that rich people do 5 things with their money to keep them wealthy.
1. Wealthy people follow a financial plan
Wealthy people who hold - and even grow - their wealth have a forward-looking financial plan, says Rush. Many of his clients have a financial plan that not only records how much should be spent and saved. “You need to know the family's total budget and expenses. What insurance do you have, what the real estate plans look like, whether your family can possibly count on an inheritance or how much you want to donate, ”says Rush. In addition, a financial plan should always include taxes, employee benefits and possible investments.
2. You invest for the long term
Most of Rush's clients do not trade in stocks. They don't think about the right moment to invest in the stock market and how to make money so quickly. Instead, they tend to plan long-term investments. “We're not trying to outsmart the market. We just want to offer our investors the highest probability of making successful investments, ”said Rush. Most of the time they buy business shares and hold them for a long time. Investing is not an active process - it is more about patience. And the security of going out with a profit in the end.
3. Wealthy people plan their retirement
For many people, retirement means living on less money and having to compromise. Rush says that his clients plan to retire as early as possible and start saving when they are young. So you can enjoy the same standard later as you do now. “We expect a life expectancy of 96 years. Because we know that there is a 25 percent probability that at least one of a 65 year old couple will live to be 96.
4. You will find ways to save taxes
With forward planning, wealthy people have learned to save taxes. They know where they can take advantage of loopholes in the law or how much taxes they actually have to pay the state now and later. Taxes are a complicated structure. That is why it makes sense to integrate them directly into the financial plan and to pay close attention to taxes with every step and possibly be able to deduct them.
5. Wealthy people plan charitable giving
As with tax savings, wealthy people often include charitable donations in their budget. Not only because many wealthy people also want to give something back to society, but also because donations offer a lot of tax advantages. Donations can help to reduce the entire tax-relevant income, which reduces the overall tax burden. Donations have advantages in many ways.
This text was translated from English and edited by Siw Inken Forke. You can find the original here.
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