Lots of people are curious about the lives and inner workings of the old money crowd. But how do these families maintain their wealth for so long? The statistics show that most wealth is squandered by the third generation. How does old money stay rich, then?
Old money families have been able to maintain their wealth over time through several unique strategies and practices:
Diversification
Old money families often have a diversified portfolio of assets that includes real estate, stocks, bonds, and other investments. This helps to spread the risk and ensure steady returns.
Long-term thinking
Old money families insist on a long-term perspective when it comes to their investments, focusing on steady growth rather than short-term gains. This allows them to weather market fluctuations and economic downturns.
Education and knowledge
Old money families prioritize education and knowledge, which helps them make informed decisions about their investments and business ventures.
Frugality
This one comes as a surprise to most people. Old money families are actually known for their frugality and reluctance to overspend or waste money. They prioritize value over cost and are not swayed by flashy trends or ostentation.
Legacy planning
Old money families plan for the future by establishing trusts, foundations, and other structures that help to preserve their wealth for future generations.
The key to old money’s continued wealth is a combination of strategic investments, a long-term perspective, and a commitment to preserving wealth for future generations. With a little education and time investment, you too can preserve your family’s wealth for future generations and establish a culture of preservation within your descendants.
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