Arrowroot Family Office
  • Home
  • Services
    • Multi Family Office Services
      • Accounting
      • Tax Efficiency
      • M&A Advisory
      • Wealth Strategy
      • Family Governance
      • Philanthropic Initiatives
    • Wealth Management Services
      • Investment Management
      • Individual Retirement Account (IRA)
      • 529 Plan
      • Corporate Retirement Plan
    • Financial Planning Services
      • Financial Planning
      • Retirement Planning
      • Estate Planning
      • Tax Planning
    • GUIDELINES TO FINANCIAL FREEDOM

  • Offices
    • Southern California
    • Northern California
    • Michigan
    • Virginia
  • Team
  • About Us
  • Contact
Search
  • Home
  • Services
    • Multi Family Office Services
      • Accounting
      • Tax Efficiency
      • M&A Advisory
      • Wealth Strategy
      • Family Governance
      • Philanthropic Initiatives
    • Wealth Management Services
      • Investment Management
      • Individual Retirement Account (IRA)
      • 529 Plan
      • Corporate Retirement Plan
    • Financial Planning Services
      • Financial Planning
      • Retirement Planning
      • Estate Planning
      • Tax Planning
    • GUIDELINES TO FINANCIAL FREEDOM

  • Offices
    • Southern California
    • Northern California
    • Michigan
    • Virginia
  • Team
  • About Us
  • Contact
AFO2022-07-20T12:52:12+00:00

A common question we hear from clients is “What are the wealthy investing in?” or something along the lines of “What’s the secret?”.

Well the long and short of it is there is no secret sauce to investing, but there are quite a few sauce options! We will review some of these options and see how the wealthy are taking advantage of these opportunities.

Table of Contents hide
  1. 6 Asset Classes Wealthy People Invest Their Money Into
    1. Bonds
    2. Real Estate
    3. Stocks/Mutual Funds/ETFs
    4. Precious Metals
    5. Business Equity
    6. Cryptocurrencies

6 Asset Classes Wealthy People Invest Their Money Into

Bonds

Believe it or not, Bonds are a staple of the portfolios of the wealthy. These are the “Steady-eddy” return type of investments, but they serve the central purpose of a wealthy portfolio: Capital Preservation.

Within Bonds, there is a spectrum of risk that can be taken on to add to the yield. Many Wealthy investors go with highly rated municipal bonds to avoid taxation and have steady growth!

Real Estate

Real estate is another asset class that is a staple of the portfolios of the wealthy. They utilize this as a dual purpose vehicle. The first way it is used is for income generation, where they receive rent or dividends from the property or Real Estate Investment Trust itself. The second is for store of value, meaning that real estate is limited so the value of it is most likely to maintain over time

Stocks/Mutual Funds/ETFs

The most common asset class that people assume the wealthy make their money through is the stock market, but just how do they do it? The stock market can be a complicated place with more fugazi than a sketch comedy troop, however if managed correctly can be a wonderful vehicle to build and maintain wealth.

The majority of wealthy investors utilize dividend paying stocks and invest solely in companies with strong revenue, price to earnings, profitability, low debt, and strong cash flow. These metrics are the fundamentals on which strong stock investing is built.

Precious Metals

The only thing better than owning a part of a successful public company via stock investing, is owning a piece of a successful private company via capital investment. This is something the wealthy frequently do as they have the large sums or sweat equity required to become involved in the investment.

Private ownership provides direct dividends and the potential for a large market gain upon the company being sold or going public.

Business Equity

This is a great way for the wealthy to find additional diversity in store of value. The wealthy value art and collectibles highly and there is a strong market for this style of investing if the remainder of your portfolio is well balanced.

Cryptocurrencies

The modern technological gold rush of cryptocurrencies is currently catching on to hedge funds and high net worth investors, finding Bitcoin and other cryptocurrencies have strong value through their principals, technological function and utility, and their ease of use.

There are quite a few cryptocurrencies that are growing in popularity:

  • Bitcoin (considered a store of value or nicknamed “internet gold”),
  • Ethereum (Seen as a verifiable transaction and app hosting platform, basically a safer transactional internet), and
  • Chain Link (A strong cryptocurrency that confirms real world happenings with electronic Contracts, verifying in live time).

Cryptocurrencies are HIGHLY Risky and volatile, they are not for the weak stomached or those who have low risk tolerance, however they are being used by the wealthy investors to help store value and shape the future of the internet commerce space.

Read more: Step-by-Step Investing Guide

What are the Wealthy investing in?

Share this post

Facebook Twitter LinkedIn Email WhatsApp

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


Related Posts

08NovNovember 8, 2022

How to Choose the Most Suitable Family Office Firm?

How to Choose a Family Office That Is Right Fit for You​ In recent years, the growth and popularity of family... read more

03MayMay 3, 2021

Make Your First Home An Investment Property

Make Your First Home an Investment Property Most people who invest in real estate normally do not start until they have... read more

LEARN HOW!

Services

Links

Newsletter

  • 4553 Glencoe Ave, Suite 201, Marina del Rey, CA 90292
    (310)566-5865
  • 2 Boars Head Ln, Suite 110, Charlottesville, VA 22903
    (626) 712-2090
  • 1264 Hawks Flight Ct Suite 290, El Dorado Hills, CA 95762
    (916) 384-0050
  • 725 Barclay Circle, Suite 215, Rochester Hills, MI 48307
    (248) 453-5252
  • Investment Management
  • 529 Plan
  • IRA
  • 403(b)
  • 401(k)
  • Corporate retirement
  • Retirement Planning
  • Tax Planning
  • Estate Planning
  • Financial Planning
  • M&A Mergers
  • Arrowroot Capital
  • CPA Partnership
  • Press Releases
  • Careers
  • Blogs
Arrowroot Family Office LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (“SEC”). Registration with the SEC does not constitute an endorsement by the SEC, nor does it imply that AFO has attained a certain level of skill or ability. Content should not be construed as legal or tax advice, AFO is not engaged in the practice of law or accounting.

Form ADV Part 1.pdf

Form ADV Part 2.pdf

Form CRS

    Terms & Condition | Privacy Policy | Web Accessibility

Copyright © 2022 Arrowroot Family Office – All rights reserved.

Services

Links

  • 4553 Glencoe Ave, Suite 201, Marina del Rey, CA 90292
    (310)566-5865
  • 2 Boars Head Ln, Suite 110, Charlottesville, VA 22903
    (626) 712-2090
  • 1264 Hawks Flight Ct Suite 290, El Dorado Hills, CA 95762
    (916) 384-0050
  • 705 Barclay Circle, Suite 215, Rochester Hills, MI 48307
    (248) 453-5252
  • Investment Management
  • 529 Plan
  • IRA
  • 403(b)
  • 401(k)
  • Corporate retirement
  • Retirement Planning
  • Tax Planning
  • Estate Planning
  • Financial Planning
  • M&A Mergers
  • Arrowroot Capital
  • CPA Partnership
  • Press Releases
  • Careers
  • Blogs

Newsletter

Arrowroot Family Office LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (“SEC”). Registration with the SEC does not constitute an endorsement by the SEC, nor does it imply that AFO has attained a certain level of skill or ability. Content should not be construed as legal or tax advice, AFO is not engaged in the practice of law or accounting.

Form ADV Part 1.pdf

Form CRS

Form ADV Part 2.pdf

    Terms & Condition | Privacy Policy | Web Accessibility

Copyright © 2022 Arrowroot Family Office – All rights reserved.

  • 4553 Glencoe Ave, Suite 201, Marina del Rey, CA 90292
    (310)566-5865
  • 2 Boars Head Ln, Suite 110, Charlottesville, VA 22903
    (626) 712-2090
  • 1264 Hawks Flight Ct Suite 290, El Dorado Hills, CA 95762
    (916) 384-0050
  • 705 Barclay Circle, Suite 215, Rochester Hills, MI 48307
    (248) 453-5252

Services

  • Investment Management
  • 529 Plan
  • IRA
  • 403(b)
  • 401(k)
  • Corporate retirement
  • Retirement Planning
  • Tax Planning
  • Estate Planning
  • Financial Planning

Links

  • M&A Mergers
  • Arrowroot Capital
  • CPA Partnership
  • Press Releases
  • Careers
  • Blogs

Newsletter

Arrowroot Family Office LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (“SEC”). Registration with the SEC does not constitute an endorsement by the SEC, nor does it imply that AFO has attained a certain level of skill or ability. Content should not be construed as legal or tax advice, AFO is not engaged in the practice of law or accounting.

Form ADV Part 1.pdf

Form ADV Part 2.pdf

Form CRS

    Terms & Condition | Privacy Policy | Web Accessibility

Copyright © 2022 Arrowroot Family Office – All rights reserved.

Please note that you are exiting Arrowroot Family Office's website and entering one of a separate company. Arrowroot Family Office does not recommend or confirm any information on this site. Please read all disclosures on Arrowroot Family Office's website and that of the company's page you are about to enter. Continue Cancel