Preservation of capital is an important aspect of any financial plan, but in today’s economy, this is impossible without taking on some risk. At one time, you could confidently place any money you might need within one year in a high-yield savings account and be relatively confident that your money could buy at least as much a year in the future than it could buy the day you deposited your funds. Interest rates were relatively coordinated with the rate of inflation.
Whether you’re already rich or you’ve just inherited, you may want to consider changing some of your cash into real assets. This can help to keep your wealth free from sticky fingers. Nevertheless, asset protection involves doing things a little differently.
Everyone wants to build their wealth and be financially stable to achieve success as well as peace of mind. However, wealth protection and growth requires a thorough financial plan. You have to review it on a regular basis and understand exactly where you’re headed. The formulation of your successful financial plan can be based around a couple of key strategies in financial management i.e. wealth preservation and wealth growth.
Well, considering all the speedy changes going around and the political, social and economic instability that comes along, the preservation of wealth has become essential for effective asset management and wealth planning. And, when you start preserving your wealth, you automatically put yourself on the route to wealth growth by making careful investments and following a well laid out plan. Nevertheless, growing wealth and preserving it aren’t essentially the same and there are some differences that exist. So, let’s find out what each of these terms actually mean and what exactly sets them apart.
These are the assets the wealthy invest in to preserve what they have:
1. Exclusive real estate
When people talk about “exclusive real estate, they mean real estate that doesn’t hit the market often. It’s rarely used to make a big return. Instead, it may be some form of historical building. As long as it maintains its value, wealthy investors are happy.
When this type of real estate does hit the market, there’s a lot of interest. However, you don’t have to invest in the Taj Mahal. Simply purchasing a 17th-century cottage, for example, is the type of exclusive real estate purchase that doesn’t have to cost you a ton of money.
2. Fine art
Most wealthy investors don’t acquire fine art merely because they’ve fallen in love with the work. They know it has value. Fine art will always have someone who wants to buy it, and those who want to buy it understand its worth. They are not trying to bargain for every cent, which makes this a good investment.
Sometimes fine art can even go in the asset box and generate a passive income. Some wealthy individuals have gathered enough fine art to open private galleries, or to lease their art to famous galleries.
3. Rare coins
The super-wealthy do spend a considerable amount of money on luxuries, at least $1.1 million each year. But this is actually a tiny fraction of their wealth. Furthermore, the luxuries they buy may include things like rare U.S. coins, which many use as a wealth preservation tool. One reason rare coins are a good investment? The market is comprised of historically significant items that are very limited in supply.
4. Usable precious metals
Gold is desirable because it’s easy to purchase never goes out of fashion. But more and more of the rich are looking toward other precious metals. Titanium and platinum, for example, are used in the construction of many electronics, which makes them prized by businesses and governments all over the world. While not as popular as gold as an investment, these precious metals can be used in a practical capacity. It’s no surprise to see them becoming popular among wealthy investors.
One may not live to see their investments a hundred years later, but if invested wisely, their corpus can grow to a significant amount in a reasonable time frame. These were some of the ideal investments that can fetch you long-term as well as short-term gains. You will learn about these and many more rewarding investment channels in detail under this program.