Investment Strategies for the Ultra-High Net Worth Individuals

For a person who is a part of the UHNWI (Ultra-High Net Worth Individual) group, there is definitely a need for a prudent investment plan. It does not imply that such folks have to have an extraordinary investment plan. All that is required is smart thinking to protect your savings, decrease your taxes and boost your ROI (Return on Investment).  Julio Lage, investment expert from the renowned Belvedere Group, has a dedicated team of professionals who handle the ultra-high net worth businesspersons from various regions of the world, saving them millions of dollars every year. Thus, he would like to share some strategies on lucrative investments. Let us get started. 

• Keep track of your expenses 

While investing, you may never realize the amount of investment expenses building up. For instance, if you have $10 million worth of investments planned for mutual funds with an investment expense (or fees) of about 1%, then you are paying $100,000 annual fees. According to financial advisor Julio Lage, this fee may not matter to most if they are able to gain high amounts out of their investment schemes, but if you are able to get the same benefits at a much lower investment fees, then why not go for that. 

• Choose tax-free investment options 

The ultra-high net worth people may not be able to save enough through the conventional tax-reducing methods as they are in the higher tax groups. Thus, it is even more significant for them to save as much taxes as possible. A prudent example of such an investment option is the municipal schemes that are tax free. For the UHNWI, such schemes can be highly lucrative. 

To explain it in the form of an example, consider two schemes. First is an investment option, which offers 5% interest gain, but it is taxable. The other is a tax-free bond under municipal scheme that offers an interest gain of just 3%. Some may think of the former option to have a better chance of growing as it gives 5% interest gain periodically. However, for the investors of the ultra-high net worth, this scheme will also result in a taxable amount of at least 39% with additional tax on the net interest gain. This eventually leads to a small return as most amount goes to the government. So, you may have to think twice before investing in figures. 

Julio Lage, advisor and chief executive at Belvedere Group, understands your high income better than anyone else does. Which is why he and his team is ready to give you full-time advice so you can earn profits like never before.