A recent study by Price & Associates on the investing habits of the wealthy reveals some fascinating differences in the way the rich invest their money compared to the rest of the population. The data shows the wealthy often avoid the types of investments favored by the masses such as stocks and mutual funds. Average Americans invest a large portion of their retirement money in mutual funds and stocks because their advisor says it's the best strategies out there. Another common reason is the "herd mentality"

The wealthy follows these 2 principles when it comes to their savings that AVERAGE investors should follow:


The wealthy are concerned about losing their money in the stocks or mutual funds. Many of them are scouring the internet to look for the best rates for their savings without ever worry about losing their principals and gains. CDs, money market accounts, FDIC-insured options, and Fixed Indexed Annuity are some vehicles you can utilize to save your retirement savings in. Fixed Indexed Annuity is the most common vehicle used because of the following reasons:

  1. Benefit from stock market gains,

  2. Guaranteed minimum rate of return,

  3. Investment and gain are protected, even when stock market crashes,

  4. Option of Guaranteed Lifetime Income, and

  5. No up-front fees

Make sure not to confused Fixed Indexed Annuity with Fixed Annuity. Fixed Indexed annuity provide higher returns than Fixed Annuity.

A very good Fixed Indexed Annuity product can provide reasonable rate of returns. It can provide between 6% to 8% return if you can find an advisor who know what they are doing.

Of course it’s very important to look into an institution’s overall financial health before you give your retirement savings.


It may surprise you that the wealthy also worry about rising prices eating into their savings. Inflation can be devastating to anyone (rich or poor) who keeps too much money in safe, low-yielding savings vehicles such as CDs, money markets, etc. So if you think you are set by putting all your money in these vehicles, then INFLATION is you No. 1 enemy.

When inflation inevitably starts to creep upward again, your savings buy less. For example, a car with a price tag of $10,000 in 2007 might cost $10,403 in 2009. But your savings account still only contains $10,000 unless you've found a bank averaging a 4 percent after-tax rate of return over the past two years.

The wealthy don’t enjoy paying taxes. Many worry they’ll have to pay more money to the federal government under new proposal introduced by Congress and the Obama administration. So the wealthy are turning to their trusted advisers for advice on their tax-exempt investments. Well-off individuals also choose Fixed Indexed Annuity because they are considered more stable investments, due to insurance that this annuity carry.

Please feel welcome to contact me at if you'd like to learn more about protecting your retirement savings.

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