The world's wealthiest individuals didn't achieve their status by accident. It requires strategic planning and deliberate wealth management. Lucas Noble, a leading financial professional globally recognized within the top 3% of advisors, offers insights into the strategies these high-net-worth individuals use.
As a Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Chartered Adviser for Senior Living (CASL), and Accredited Estate Planner (AEP), Noble relishes a complex client challenge. His extensive experience, spanning 16 years, has been recognized with awards such as Fortune Magazine's 40 under 40 - Top Wealth Manager under 40 in 2021, among others.
One key strategy billionaires leverage is addressing their unique challenges with a comprehensive financial plan.
"A client that has a challenge, maybe something they feel overwhelmed with. I love what appears to be a complex situation and providing the strategy behind it and the help to organize it," explains Noble.
"They also use strategic estate planning to significantly reduce their taxes during the transition of their wealth to their family. "This could be by creating trusts and gifts to their family. Also, it could be by giving to charities while they were alive to reduce income taxes."
Investment management is another significant area billionaires pay close attention to. They manage and oversee individual stocks, bonds, exchange-traded funds, or mutual funds customized to their needs. They tend to keep their portfolios diverse to reduce risk and increase the potential for gains.
A critical concern for billionaires, especially in uncertain economic times, is inflation. According to Noble, the only real way to hedge inflation is to maintain stock exposure.
"When you're invested, the only way to really hedge inflation is to maintain stock exposure. So being invested in the stock market is by design intent. To provide returns to help outpace inflation," he explains.
Planning for recessions is another key strategy for wealthy individuals. The reality is that recessions are inevitable. However, being prepared and diversified can weather any financial storm.
"Being invested in a way that is appropriate for your age...When a recession hits, I can let my stocks weather the storm. A recession doesn't mean you lose all your money; a recession simply means that the stocks are going to go down," he says.
Lucas also highlights that billionaires often prefer gradual changes instead of radical adjustments in their wealth management plans. They seek small victories and wins that inspire them to move forward.
The world's wealthiest individuals approach wealth management with meticulous planning, strategic investing, and a keen understanding of how to navigate the financial landscape. With advisors like Lucas Noble, they are able to make informed decisions, optimize their assets, and continue to build their wealth.
