Wealth Management: 6 Assets Financially Successful People Invest In

Posted by Jarrod Musick on June 15, 2017


When you were starting out on your journey early in your career, or perhaps starting to build your business when you were young, you had options and choices. You had to choose whether you wanted to be a lawyer, doctor, businessman or be involved in any other profession.

As you progress through your career, there is another option relating to wealth that needs to be considered:

“Where do I put my hard earned money?”

You don’t want to be a retiree and not be able to maintain the lifestyle that you have been accustomed to, do you? You’d also likely want to keep providing for your family’s needs without continually working hard. If that sounds good to you, we can help.

That is where proper wealth management comes into the picture. It’s prudent to save a certain amount of money for your family’s needs, but you also need to consider where to put those savings in order for that wealth to grow to sustain your wants and needs.

Since your money loses value over time due to inflation, you need to be able to put that cash into assets that have a good chance to grow and compound over time. With those initial seeds of investments in certain assets, they may eventually grow to become big trees that will bear fruits for you and your family’s future needs.

Here is a list of assets that financially successful people consider investing in:

1. Business

If you are passionate about something or you have an idea of a business that might be profitable, then you can start your own business. On the other hand, if you think that your skill set is more narrow and have been sharpened to engage in a high-end profession then you might consider investing in someone else’s business.


When you take the first route, make sure that you have enough experience to be able to manage your own business. You can either develop the knowledge and skills on your own or you can hire someone else who is an expert in that field. You can franchise a business as well and receive a proven business model. The extra factor to consider here is the additional franchise and royalty fees, which might be costly.

The second way is to invest in someone else’s business. You might have a friend or colleague who has experience in the restaurant field looking for investors. Make sure to do your due diligence when investing in someone else’s business and check if they have the proper experience to be successful.

 2. Real Estate

There are two main ways you can build your wealth with real estate. One is from rental income and the other is capital appreciation. Both have their pros and cons.

In rental income, the return can be really low relative to the amount you invest. The benefit with real estate is it’s possible to earn virtually passive income and the leverage banks are willing to lend is massive. Generally, as long as the property generates positive cash flow after all expenses, it can be considered for investing. Some other things to consider when investing in a property for rental income are:

  • Whether there are a lot of potential tenants.
  • If you can rent the property out at market value.
  • Your purchase price and all expenses, including renovation.

The potential for capital appreciation is also really great. There are real estate investors who flip their properties fast and earn from capital appreciation without holding the property for too long. They then buy new properties to flip again. The drawback of that are the commissions to buy and sell properties, as well as the capital appreciation tax if it’s not an owner-occupied property and the property is not registered in the appropriate business structure. There are ways to minimize that tax burden, which Destiny Capital can help with.

There are other ways to build wealth with real estate as well, which include commercial and industrial real estate, as well as real estate investment trusts (REITs). All of these can be considered for increasing your wealth.

3. Bonds

When you buy a bond, you are essentially lending money to a government entity or a business. Your bond then earns interest at a fixed or variable rate. The time frame of the bond can be short term, mid-term or long-term.

You can typically purchase government or corporate bonds through publicly traded exchanges or over the counter. You may ask a wealth management firm, such as Destiny Capital, about the best ways to purchase bonds, since you may purchase them in different ways. 

Bonds have quality and credit ratings given to them. More often than not, governments have a lower yield for the bonds they issue but they are considered less risky. Corporate bonds may have higher yields but are riskier.

4. Stocks

Stocks can probably be the most profitable but are one of the riskiest of the asset classes that you can invest in. There are day-to-day fluctuations in the stock market that may spike your emotions.

There are experts that may help you invest in the stock market. They include financial advisors that are Certified Financial Planners (CFP) or Chartered Financial Consultant (ChFC) designation holders.

With proper guidance, you may be able to construct a portfolio of stocks that will meet your risk profile, return objectives, some of your liquidity needs, and other requirements. At Destiny Capital, we’ve got the kinds of financial advisors and planners you’ll need for those purposes.

5. Mutual Funds or ETFs

Mutual Funds and Exchange Traded Funds are pools of investments from individuals and institutions for the purpose of investing in different asset classes, including stocks, bonds, commodities, REITs, alternatives, hedge funds, and others. Professional managers supervise the fund and have mandates and guidelines to make decisions regarding which securities to purchase or sell.

The main advantage of mutual funds and ETFs is their diversification, since these funds hold many different securities in just one investment vehicle. The only thing that is common for equity-based mutual funds and ETFs is their direct correlation to the movements of the stock market. Thus it is advisable not to put a big percentage of your assets in equity-only mutual funds and ETFs, and consider other mutual fund and ETFs that track other asset classes, so that the overall exposure is more diversified.

The Added Value of Wealth Management Firms


Wealth Management firms offer the opportunity to be able to invest in a wide choice of asset classes including all of the ones you’ve read above. They make sure that your investment portfolio matches your needs.

Destiny Capital is one of those Wealth Management firms. Destiny Capital constructs an investment portfolio or several portfolios that are designed to meet your specific investment goals, time horizons, liquidity needs, and risk profile.  They not only consider your individual needs, but your whole family’s as well.

When selecting individual assets for your portfolios, Destiny Capital leverages both internal research and expert third party analytics providers. Selection of each asset is done by a well pedigreed investment committee and all portfolios are monitored on a weekly basis. By utilizing analytic tools that evaluate not only the risk of an individual asset, but also the correlated risk of those assets as a portfolio, Destiny Capital is able to communicate the investment risk of your portfolio in an easy to understand manner.

Final Thoughts on Building your Assets

Take care of your hard earned money and put it into assets that will guarantee your financial freedom. Once the working days are over, you want to be able to have an asset base that continually produces abundance for you.

Once again here is the list of assets that financially successful people invest in:

  1. Business
  2. Real Estate
  3. Bonds
  4. Stocks
  5. Mutual funds

To build a well-diversified portfolio and a wide range of assets (including all of the above), Destiny Capital has you covered.

Contact Destiny Capital for your absolutely free consultation today!


Topics: Wealth Management