Investing Strategies for the High-Net-Worth Investor
When you're a high-net-worth investor, proper investment-management strategies are even more important -- but that doesn't mean that you need to do anything out of the ordinary. With that in mind, here are some investing strategies that could save you money, protect your portfolio, and boost your investment returns whether you're a high-net-worth investor, or aspire to become one in the future.
Investment fees can really add up, especially if you have a lot of money invested. If you have $5 million invested in mutual funds at an average expense ratio of 1%, you're paying $50,000 per year in investment fees alone.
Now, I'm not saying that fees are never worth paying. In fact, I'll happily pay relatively high fees for mutual funds that consistently deliver strong performance. Rather, I'm saying that it should be a part of all high-net-worth investors' strategies to know the investment fees they're paying and compare them with other investment options that might accomplish the same objective. For example, if you're invested in an S&P 500 index fund with a 0.4% expense ratio and switch to a fund that tracks the same index, but charges just 0.05%, it can make a big difference in your long-term returns.
Source: Fool.com
