What Rich People Need to Know
I ran across an article at Market Watch titled “Ten things rich people know that you don’t.” It listed the usual things:
- Start saving early
- Automate your savings
- Maximize contributions to 401(k)s
- Don’t carry credit card debt
- Live below your means
- Educate yourself about investing
- Hire a qualified financial advisor
All of that is something to take to heart when you’re young and just starting in life. But what do people who are already rich need to know?
Lots of people get rich without following the rules. They may start a successful business, enter a highly compensated profession, climb the corporate ladder, win the lottery, become a sports star or inherit a fortune. Once you are rich, the number one objective for most people is to stay rich. One very successful financial advisor with just 28 very wealthy clients said
“People don’t come to me to get rich, they come to me to stay rich.”
That’s the role of a good financial advisor. Their job is to do more than manage their client’s portfolios, it’s to take care that all of the other boxes are checked off: to diversify the client portfolio, to educate the client about investing, to see to it that they live within their means. In many cases they take care of family issues, lifestyle issues; the kinds of things that family offices do.
It’s what we do. It’s what our clients expect.
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