Men's Articles

Learning From The Rich


The path to wealth is not due to luck or hard work. Both might have an impact to some degree, but the fact of the matter is that rich are rich because they plan how and achieve more than what they set out to achieve with their available resources. If those who already have much take proactive steps to preserve and enhance their wealth, doesnt it mean that the average man or woman should aim to do even more for their financial life? What can we learn from them?

They Have More Access To Financial Products

They are always on the lookout for ways to enhance the returns on their funds. With private bankers and financial advisers jostling for their attention, the rich are exposed to a wide variety of financial instruments, which unfortunately, may not all be available to the average retail investor.

They Are Objective

Whoever is able to provide solutions to their financial issues most comprehensively and effectively gets their business. They do not invest in a product merely because it is introduced by a friend or relative, or that it comes with a gift or discounts.

They Pay For Advice

Having dealt with professionals like lawyers, doctors and accountants, the affluent tend to be more accustomed to paying a financial professional. They tend to be able to sniff out product pushers from those who are truly able to add value. They realize that there is no such thing as a free lunch and are thus willing to pay for good advice.

They Transfer Risks

The rich are likely to purchase a mortgage cancellation insurance to ensure that the property will be fully paid should they die prematurely or become disabled. Paying an annual premium of a few thousand dollars is an extremely small price as compared to saddling the family with a half-paid property. The rich understand the value of transferring those risks that will potentially impact them and their families financially.

They Take Calculated Risks On Their Investments

The rich tend to manage their investment dollars by ensuring that their portfolio is well diversified among the different asset classes. Obviously, there are some who tend to be conservative, but with proper financial guidance, they tend to be willing to have a portion of their funds to be managed more aggressively and that can raise the overall performance of the portfolio.
 

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