Are the Rich Different?

Investors who are seeking the secret to becoming rich are likely to be disappointed to find there is no secret; they invest their money in the same assets as everyone else. There are however, key differences:  

1. DIFFERENT MINDSET 

* The rich, also described as high net worth individuals, commonly defined as those with at least $US1 million in assets (not including their home) get rich slow. There is no magic formula - it's more about time, patience and sticking to a plan and letting compound growth and leverage work their magic. 

* They generally invest across a range of growth assets; they diversify so as to not have all their eggs in the one basket. 

* They usually have `patience' as their middle name. They are prepared to ride out the ups and downs of the market, with the knowledge that at the end of the day, it will be growth assets that provide the best returns. 

* Warren Buffett, the world's most successful investor says that the market is a mechanism for transferring wealth from the impatient to the patient. Buffett and rich investors don't see a downturn in the market as a negative, but as an opportunity to buy. 

* One of the keys to success in everything you do is to follow this rule - "anything worth doing is worth doing poorly at first". This rule recognises that it is impossible to achieve your goals unless you are willing to fail. It recognises that it is not perfect practice that makes perfect it is imperfect practice. Nobody does it perfectly the first time, so you must be prepared to do it imperfectly until you reach the point when you can do it well. 

2. DIFFERENT STRUCTURES 

* Such as family trusts and self-managed superannuation funds - all designed to minimise tax. 

* They also prefer to invest directly into shares and property, rather than through managed structures.

Article Source: http://EzineArticles.com/?expert=Neil_Handley

About the writer -----------------------------------------------------------------------------
Neil Handley graduated as a Bachelor of Economics and Accountant. After some 20 years as a stock broker Neil turned to property development. He then acquired a controlling interest in a property development company listed on the stock exchange and became CEO. He has been involved in developing residential subdivisions, industrial subdivisions,shopping centres, office buildings and medium density residential dwellings in Sydney's north shore, Northern Districts, Parramatta and Liverpool areas and on the Gold Coast, Queensland. One office building was sold to the AMP for $25ml. Neil's company advises on building wealth via property.
Go to http://www.specialstrategies.com .

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