Mistrust toward financial institutions, such as banks, prompts more fearful people to look for alternative areas to safely keep their wealth.
Some people might be avoiding the banks due to their principle. This is particularly true since banks are known to participate in lending that resulted in the housing bubble burst.
Banks have begun to look safer after the wildly volatile stock screener market in the previous year. However, it is still ideal to search for other alternatives to safely keep your wealth.
A lot of wealthy people began looking for alternative investments after the financial crisis of 2008. They do this to protect themselves from losses.
According to reports, the desire for investments is greatly increasing nowadays due to volatility in equities and commodities.
Wealthy individuals are particularly at risk since they’re the main targets for rejected relatives, ambulance-chasing lawyers, and other people who want a piece of their wealth.
Whether you have inherited or are already wealthy, you might want to think about changing some of your money into real assets.
So, how to keep your wealth the right way? Here are some tips to consider:
Table of Contents
Hide Your Cash
While stuffing money under your bed might sound a bit too cliché, it undoubtedly keeps your money close at hand. Obviously, you can also try to secure your money in a safe. Simply ensure you purchase the safe from a reliable electronic safe for home.
Keep in mind that this approach is perhaps ideal only for a doomsday scenario, or for occasions of a short-term liquidity crunch.
Still, it’s ideal to keep a bit of cash close at hand.
Precious and Valuable Metals
A lot of people think buying gold is good because it’s easy to buy and it doesn’t go out of fashion. However, more and more wealthy individuals are looking toward other precious metals.
For instance, platinum and titanium are utilized in the construction of a lot of electronic pieces. That is why a lot of governments and businesses prize them all over the world.
Though it isn’t as popular as gold when it comes to investments, you can use these precious metals in a practical capacity.
That is perhaps why they are becoming popular among rich people.
Corporate stock is a time-proven approach to outpace inflation over a long period, survive economic and political turmoil, and possibly offer income to the family.
The company BMW is an excellent example of this. This company was founded in 1913 and is based in Germany.
BMW survived hyperinflation, WW1, WW2, and a possible liquidation in 1959.
This doesn’t mean that all company stocks will be an excellent long-term investment. However, if you properly pick it, this asset class should help sustain the wealth of the family through several generations.
Aside from that, the family may benefit from an extra stream of income if the company pays dividends.
Gold has always been one of the top places for rich people to store their wealth. It makes a lot of sense since gold maintains considerable value even if the paper currency is weak.
According to history, a lot of rich people survived for a long time just by purchasing large amounts of gold.
The good thing is that there is a type of gold for every person. If you plan to invest a small amount you can choose to buy gold coins. If you’ve got a lot of cash, you can buy gold bars that you can store in countries, such as Switzerland.
Wealthy people do not store large amounts of gold in the United States. The reason for this is that the current legislation of the country says that the government has the right to seize and raid safes containing gold.
This is the main reason why a lot of wealthy individuals in the US try to store most of their wealth offshore.
When you purchase gold, don’t forget to buy a hand sanitizer as well to sanitize your hands after holding the gold.
Almost every rich investor does not buy fine art just because they like the way it looks. They know the value of that art piece. Fine art will always have a person who is willing to purchase it.
People who are willing to purchase it know its worth. They aren’t trying to bargain for each cent.
Fine art can often even go in the asset box and produce a passive income stream. A couple of rich people have obtained enough fine art to open private galleries.
Some of them rent their art to well-known galleries. This is how they store their money and earn more from it.
Exclusive Real Estate
For those who don’t know, exclusive real estate is a type of real estate that does not hit the market frequently. They do not expect to make a big return when they invest in this.
They usually look for some type of historical building. Rich investors are satisfied as long as it keeps its value.
There is a lot of interest when this kind of real estate does hit the market. However, this does not mean you should invest in rare real estate, such as the Taj Mahal.
For instance, you can just buy a 17th-century cottage. This form of exclusive real estate purchase does not cost you a lot of money.
Knowing DIY tricks on how to invest in exclusive real estate is extremely useful.
Keeping your money safe is one of the main goals of preserving it. Oftentimes, this can mean maintaining your principle, taking precautions against people who want a piece of it, lowering your tax bills, and even profiting along the way.
The purpose of safekeeping your wealth is to have something on which to retire. You can also use it to pass to your kids and grandkids in the future.