10 Tips For High Net Worth Investors
Last updated 24th September 2018 • Ethan Mathews • JaeVee
A high net worth investor is someone who self-certified themselves as having an annual income of over £100,000 or more in the last financial year.
Here are our top 10 investing strategies for the high net worth investor (HNWIs).
Take Advantage of Brexit
With the weakened pound, why not take advantage of the situation and use this time to diversify your portfolios with some global investments.
Many are releasing equity in the UK market and reinvesting it internationally.
One of the top 10 tips for a high net worth investor is to diversify their portfolio and spread the risk.
Whether it be here, overseas, long term or short term one of the fundamental strategies for any high net worth investor is to have a varied and diverse portfolio to keep returns coming in, and to minimise any short falls.
It has become a lot easier in recent years for non-ownership high net worth investors to discover, assess and invest in multiple opportunities online, with companies like JaeVee that provide diligently researched property investment opportunities via a secure equity and loan shares platform.
This strategy also grants sophisticated investors to access the primary market, enabling them to diversify their portfolio at a lower risk with high returns.
Another top tip for the high net worth investor is to pool investments in a managed fund, or Exchange Traded Fund (ETF).
The main advantage of this investment strategy is that the risk is minimised should the worst happen.
Paying money in via individual investments could pose a greater risk, as if the company goes bust you could lose your investment altogether.
High net worth investors must plan their finances just like any other investor.
However, with the wealth and assets being substantial more than the average investor it is essential that if they cannot self-manage to enlist the help of a financial adviser who will manage expenses, liability, assets and the potential risks to the portfolio.
With a diverse and varied portfolio, do you know the ins and outs of each and every investment?
Probably not, which is why another top 10 tip for high net worth investors is to regularly audit their portfolio for any unexpected and ongoing costs you may not be aware of and see if there is a way to eliminate or reduce them.
Whether it be life, health, car, home owner it is essential that any high net worth investor has the correct insurance to protect them and to give them peace of mind too.
You may have some strong performing investments but they may also come with the associated high cost fees.
A top 10 tip for high end net worth investor is to know their fees, and know if they can find another investment option that is more competitive for them.
Tax Free Investments
High net worth investors are normally in the higher tax bracket so it is important to minimise tax exposure and tax free investments such as tax free municipals are a great example and one of the top 10 tips for high net worth investors.
We have spoken about the importance of having a diverse portfolio, to seek advice and to know your fees on the 10 top tips for high net worth investors.
Another is to keep some of your assets in cash.
Around 7% of high net worth investors keep a small percentage of their wealth in cash should an opportunity arise such as a market drop you can take full advantage.
On The Side-lines
Being a high net worth investor with a wealth already accumulated allows you the luxury of not having to be fully invested all of the time.
Our final top 10 tip for high net worth investors is to spend some time on the side lines until you see a compelling investment.
For more information on property investment, please visit our blog!
Capital is at risk. The value of investments can go down as well as up and you may lose some or all of your investment. Investing in shares is illiquid and you must be prepared to hold your investment for the full term. Past performance is not a guarantee of future performance. The Financial Services Compensation Scheme does not cover poor investment performance. Investments are available to high net worth and sophisticated investors only. You should read the full risk warnings on the website before making an investment. Nothing in this blog should be considered as investment advice and we recommend that you seek independent financial advice and conduct your own due diligence before making any investments.