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Featured Advisor

Srbo Radisavljevic
Managing Principal/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, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

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Top Wealth Management Strategies of the High Net Worth

How do the rich maintain and build their fortunes? Learn more about the wealth management strategies of the nation’s millionaire investors.

| BY Adriana Reyneri

The wealth management strategies of high net worth investors center around three investment topics: risk, diversification and taxes, according to Millionaire Corner research on the attitudes and behaviors of wealthy Americans.

 Learn more about the top-three wealth management strategies of the nation’s high net worth millionaires, those with $5 million to $25 million in investable assets, as reported in our UHNW Investor 2012, Volume 1 – Investment Attitudes and Behaviors:

1.       Risk: Nearly all (95 percent) of high net worth investors cite “the level of risk associated with investments” as a key investment criteria, placing risk at the top of their list of wealth management strategies. The high net worth are more likely to attribute their financial success to smart investing than to taking risk and, overall, are a largely moderate group of investors. More than half (55 percent) indicate it is more important to protect their principal that grow their wealth. Less than half (42 percent) indicate they would take “significant investment risk” with a portion of their investments in order to earn a high return.

2.       Diversification: More than 90 percent of high net worth investors identify “diversity of investments” as an important investment crierion, ranking it second among wealth management strategies. Diversification can reduce the volatility of a portfolio by spreading investment risk across a wide variety of investment products. The strategy can minimize the potential for losses while positioning an investor to benefit from market gains.

3.       Taxes: Close to 90 percent of high net worth investors indicate they are worried about “the tax implications of investments,” and four-in-ten plan to change some of their investment strategies in response to potential tax increases.  High net worth investors are more likely than less affluent individuals to take advantage of tax-sheltered investment products, including retirement accounts such as IRAs and 401(k) plans, 529 college savings plans and annuities.

High net worth investors implement these wealth management strategies through hard work and a hands-on approach to investing. Sixty percent indicate they enjoy investing and do not want to give it up, and 58 percent say they like to be actively involved in the day-to-day management of their investments.  Close to three-fourths of the high net worth work with an advisor to plan or implement one or more of their wealth management strategies.