I've Advised Ultrawealthy Families for Decades: 4 Ways They Stay Rich
Business Insider • • business
Key Points:
- Rob Mallernee, CEO of a wealth management software company, emphasizes that maintaining wealth for generations requires hundreds of good decisions rather than a single brilliant one.
- Successful ultra-high-net-worth families cultivate a purposeful family culture where heirs view wealth as stewardship rather than entitlement, motivating them to build their own careers and add value.
- These families treat tax planning as an ongoing process, employing strategies like tax-loss harvesting and hiring experts to avoid tax inefficiencies and enhance after-tax returns.
- Long-term investing is common, with families holding core assets for decades to minimize taxes and transaction costs, often borrowing against portfolios instead of selling assets to fund purchases.
- Frugality is a key habit among the ultra-wealthy, who pay close attention to costs and make intentional financial decisions, sometimes scrutinizing expenses as small as a few dollars.