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Featured Advisor

Ed Meek
CEO/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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America's Richest Investors Want it All

Investors with millions of dollars want to preserve their wealth and beat the market. Can they have it all?

| BY Adriana Reyneri

America’s richest investors say they achieved their wealth through a combination of smart investing and risk taking, but striking the right balance between risk and reward gets tricky in an environment of volatile markets and low interest rates. How are our mega millionaires coping?

As a group, mega millionaire investors sound like a conflicted lot, according to the $25 Million Plus Investor 2012 released this week by Millionaire Corner.  Most describe themselves as moderate (53 percent) or conservative (11 percent) investors. The terms imply the majority of multi-millionaires are willing to accept little or no investment risk.

Low risk investments are typically associated with low yields, yet the majority of multi-millionaire investors (64 percent) say it’s important that their portfolios outperform the market. More than 60 percent identify a good rate of return as 9 percent or higher, and nearly three-fourths (74 percent) say they’ve set aside a portion of their portfolio for speculative or high-risk investments.

How do multi-millionaires plan to balance risk and reward? They indicate they are most likely to invest in individual stocks (62 percent), mutual funds (43 percent), money market funds (43 percent), checking and savings accounts (43 percent), international investments (41 percent) and fixed-income investments (38 percent). A smaller share – 30 percent or less – plans to invest in alternative investments, such as private equity (30 percent), venture capital (27 percent) or hedge funds (26 percent).  On average, multi-millionaire investors allocate 25 percent of their investable assets to alternative investments, which also include real estate investment trusts (REITS), commercial real estate and collectibles.

What’s the take-away? In a sense, mega millionaires can have it all. They have the resources to self-insure against losses in their high risk investments and also preserve sizable assets to ensure their continued wealth. The risk-reward balance is a much more crucial one for Main Street investors.