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Jerry K.
  • Specialist
  • Phoenix, AZ
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What factors do wealthy people use to choose investments?

Jerry K.
  • Specialist
  • Phoenix, AZ
Posted May 2 2012, 11:56

What do you think a person who is worth between $5 million and $25 million dollars would consider the most important to the least important when looking at investment choices?

I just read an article from a Family Office consulting company with results from their survey of wealthy clients ($5 million to $25 million net worth minus principal residence) and it was interesting to see the results.

"Family Office" is a term used for a wealthy family that has considerable wealth and creates an office to manage the family wealth. They hire their own accountants, investment officers, etc. all just to manage and keep track of the investments and cash streams.

Before I show the results, I wanted to survey the BiggerPockets group and see how you think that wealthy group would rank these investment criteria:

Social responsibilty of the investment
Tax implication of investment
Diversity of investments
Reputation of companies where investments are made
Risk level associated with investment
Past track record of investment

These were the top 6 criteria but not in the order I just listed. What order do you think a $5 million to $25 million person would rank these factors?

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