Best Way to Grow Money for Financial Security and Success
Even if you have $5 million to $500 million or even more in liquid assets right now, there’s no guarantee that it will sustain you all throughout your life and even in retirement. Inflation and depreciation will bring down the value of your assets, and unforeseen circumstances can push you near bankruptcy. Therefore, the only sure-fire way to sustain your wealth so that you can fulfill all your financial goals and live the kind of life you desire is to grow your wealth. This is easier said than done, though. There are various risks to consider and a lot of knowledge and skills are required too. Therefore, the best way to grow money is to work with a qualified and experienced financial advisor. High-net-worth individuals worth $10 million or more can learn to find such advisors from our eye-opening guide on choosing the right financial advisors.
Another excellent way to grow your money is to partner with private wealth management firms like Pillar Wealth Management. We exclusively serve ultra-high-net-worth individuals and families with $5 million to $500 million in liquid assets. Having served such clients for more than three decades now, our wealth managers and financial advisors are familiar and well-versed with the unique challenges faced by such individuals. Furthermore, as fiduciary financial advisors, we are always working for our client’s best interests and, accordingly, guide our affluent clients to the best of our abilities. Set up a free chat with Pillar Wealth Management today to discover the best way to grow money and meet all your financial goals.
In this blog, we’ll be discussing some of the best strategies you can follow to grow your assets and sustain your wealth till retirement and even beyond. Let’s get started.
Best Way to Grow Money – 10 Strategies for High-Net-Worth Individuals and Families
Growing your money and assets is not an easy task. However, employing certain simple strategies can result in a big difference in your net worth. Some of these strategies can be helpful for the average individual as well, but they are critical for high-net-worth individuals and families.
As you will notice, smart investments and portfolio strategies are one of the primary ways to grow your wealth, but that’s not all there is to it. There are various other ways to grow your assets, too, some of which are even more important than investment management.
Here are 10 strategies to quickly and efficiently grow your money.
1. Think About Your Goals
The first thing you need to do is think about your goals. Why are you trying to grow your money? What will you do with your assets? Are you growing your wealth for a secure retirement or to transfer to your heirs, or for some other reason?
Knowing why you are trying to grow your assets will allow you to do so more efficiently. When you have a goal, for instance, to invest in a friend’s business, you will be able to develop the most appropriate strategies, rather than just trying to grow your wealth for the sake of growing it.
Therefore, think about why you want to grow your wealth first and then follow the right strategy accordingly. You can also read our excellent guide on portfolio performance to learn why goal-oriented plans are so crucial.
2. Start as Early as Possible
Another crucial step is to start as early as possible. The earlier you start, you not only get more time to grow your money, but you can also afford more risks. Growing your money is not something you can do overnight. It takes time and effort.
So, the more time you put in it, the better returns you can expect. Regardless of the type of investments you choose, all of them require some time to mature and start giving returns.
If you start your investing journey when you are well in your 30s or 40s, it will be tougher to reach your goals by your retirement age. Moreover, when you start early, you can afford to save less as you have a much longer period to save over.
3. Say No to Debt
One of the worst mistakes affluent individuals can make to grow their money is by taking on loans and piling up your debt. Especially when you are not in a very secure financial position, debt can be deadly for your financial health. It can become a vicious cycle where you keep on taking on new loans to pay back your old loans and never really getting out of them.
Even if you do manage to grow some assets this way, most of it will simply go towards paying back your debts. Therefore, you need to strictly say no to your debts. Make it a firm principle in your life to stay away from debts and then start working on paying back your loans a little bit at a time without incurring additional debts.
You can start thinking about investing once you are free from all your debts.Plan a free conversation with Pillar Wealth Management today to get started on your debt management.
4. Control Your Spending
Similar to debts, another thing that prevents you from growing your assets quickly and efficiently is uncontrolled spending. When you have $5 million to $500 million in liquid assets, it is easy to assume that buying that second house or getting a few more cars, some expensive jewelry, clothes, etc., won’t really hurt your bank account or your financial health.
However, these expenses can add up, and you will find yourself significantly less wealthy than you had imagined. While you don’t have to restrict all spending, you do need to control it and limit it to necessities. Once you have grown your assets or are in a more comfortable financial position, you can think about fulfilling all your desires and wants. But, it’s best to control yourself when trying to grow your wealth.
5. Be Consistent in Your Investment
When it comes to investments, consistency is key. When you first invest in any asset and get high returns, you probably would want to keep investing in it forever out of excitement. However, as soon as that asset results in some loss, you would want to avoid it as much as possible. All assets, stocks, bonds, etc., have some risk. They can give you rewards and losses.
If you keep withdrawing your investment from every asset that causes a loss, you will not only run out of investment options, but it will also become difficult to grow your wealth. Sometimes, staying consistent with your investments, even if they are going through a rough patch in the short-term, can result in better returns in the long-term.
6. Diversify Your Portfolio
Diversification is also important when talking about the best way to grow money. Growing your wealth is pointless if you don’t take adequate measures to protect it as well. The market is always full of volatility and is entirely unpredictable. Any sudden changes or a recession in the economy put your investments at risk and cause you to lose all your money.
That’s why you need to diversify your portfolio to protect yourself while you keep growing your assets. In addition to that, you should also adopt a suitable asset allocation. Sometimes, just portfolio diversification is not enough to cover all risks. Read about other such shifts you can make to enhance your portfolio from our guide on portfolio growth strategies.
7. Keep Emotions Out of It
Emotions can be detrimental when you are trying to grow your assets. While listening to your gut instinct can pay off sometimes, generally, you should keep emotions out of your decisions. Instead, you need to do your research, analyze the market objectively, and then base your decisions on that.
Avoid acting on any personal preferences or confirmation bias when choosing companies to invest in. Don’t let fear or anxiety stop you from investing in assets that have good potential. You should also avoid impulsive investments as those can also lead to significant losses, making it harder for you to grow your assets.
Read our book, The Art of Protecting Ultra-High-Net-Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million, for more information on growing and protecting your wealth.
8. Pay Attention to Your Costs
Along with everything else, you also have to pay attention to your costs. Your taxes or the commission you pay to your broker will not be the only expense you will have to bear. In reality, there will be tons of other costs, such as margin interest, bond sale spread, capital gain taxes, transaction costs, and various other internal expenses.
Again, if you don’t control these costs, it will be hard for you to grow your assets efficiently.Check out our comprehensive guide on the right financial advisors to learn about the different costs you need to watch out for.
9. Switch Investments as Your Priority Changes
The best way to grow money now won’t necessarily be the best way to grow money when you cross into your 40s or 50s. Depending on which stage in life you are at, your investment strategies will also keep changing accordingly. When you are in your 20s, you can afford to invest in all kinds of stocks and bonds with high risks.
However, as you get nearer to retirement, your financial position changes. You can no longer afford those risks, and therefore your investment strategy shifts towards safer assets such as fixed-income investments that could sustain you through your retirement. Schedule a meeting with Pillar Wealth Management today for expert advice on your investment and retirement plans.
10. Hire a Financial Advisor
The best thing wealthy individuals can do to protect and grow their money as effectively and efficiently as possible is to consult an expert such as a financial advisor. Financial advisors hold much more expertise and experience, which allows them to develop the best strategies according to your financial position and goals.
They can help you avoid risks, cut down on costs, manage your debts, and a lot more that helps you grow your wealth faster. Depending on the type of financial advisor you choose, they can help you with your taxes, retirement plans, estate plans, and more.
Best of all, working with the right financial advisor can help you attain financial serenity where you don’t even need to worry about your wealth or financial future. Read our guide on choosing the best financial advisors for high-net-worth investors with $10 million or more in liquid assets to attain such financial serenity yourself.
For high and ultra-high-net-worth individuals, investing and growing their assets is a crucial part of their financial plan and overall wealth management. Only when they have accumulated enough assets will they be able to fulfill all their retirement plans, secure their children’s wealth, carry out all their philanthropic plans and meet all other goals in life.
Therefore, when looking for the best way to grow money, it’s important to think about your investment strategy, minimize losses by controlling spending and avoiding debt, and most importantly, consulting with an experienced professional.
Pillar Wealth Management offers comprehensive investment management services, among other financial planning and financial advisory services, to help affluent clients grow and protect their assets. We work exclusively with high-net-worth individuals and families with $5 million to $500 million in liquid assets and help them overcome their unique financial challenges. Our financial advisors and wealth managers hold more than six decades of combined experience in serving wealthy clients and helping them meet their financial goals and attain financial serenity. Set up a free consultation with our advisors today.
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