Ways Rich People Shield Their Wealth From Risks

And what the rest of us can learn from them

Photo credit: Nishant Aneja: https://www.pexels.com/photo/man-in-an-army-uniform-holding-a-shield-and-a-knife-5491889/

The wealthy have a lot, by definition.

However, this also means they have a lot to lose. So they take steps to protect their wealth.

Here are the main risks to wealth:

Inflation

When you have wealth, you don’t keep a huge hoard of cash under the metaphorical mattress.

That would be foolish because cash is (almost) guaranteed to lose value.

In the last 25 years, inflation has destroyed 48 percent of the value of a dollar! In the past 50 years, that loss has been 85 percent and in the past century, it’s 95 percent!

When trying to preserve multi-generational wealth, you have to think long-term.

Taxation

Even without a wealth tax, the wealthy are always hyper-aware of taxes.

• Personal income tax
• Corporate income tax
• Gift tax
• Estate tax
• Proposals for a wealth tax

The first four take away significant portions of high incomes. The fifth, should it ever be enacted, would take away chunks of existing wealth.