Thursday, September 10, 2009

Wealth Analysis of Rich

This article is all about the wealth analysis of Rich & Financially free people. Here rich & financially free people are those whose passive income is much more than their monthly expenses.

- On an average, Rich hold around 20% of their total wealth in paper assets (Securities) such as publically traded stocks, bonds & Mutual Funds.

- Rich hold around 10% of their Total Wealth in form of Gold.

- Rich hold more than 30% of their total wealth in their Private Businesses.

- Rich hold around 30-40% of their wealth in Real Estate.

As a rule of thumb, rich almost never sell their paper assets (Stocks, Bonds & Mutual Funds). They hold their paper assets portfolio for years, decades and generations. In other words, they are the ultra-long term investors. They never see short term stock market fluctuations like most of the people in this world.

Whenever they have a spare cash, they simply acquire assets out of it. Few Ultra-rich people hold their wealth as exotic assets such as Paintings, Art, Coins, Stamps and antiques. In short, rich and wealthy people accumulate assets in their lives. They don’t compromise with assets for showing high status.

According to the detailed wealth analysis of rich, most of the rich invest their money in 2 things.

01) Privately owned Businesses &

02) Real Estate.

Almost every true rich and wealthy person in this world own a private business and do investments by that business. Another favourite asset class of rich is Real Estate. The reason why most of the rich mainly invest in the above 2 asset classes is, because they feel more secure and comfort when they own private business or real estates. Because they have a control over these assets.

And more the control you have on your assets, more rich you can be…!!!

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