When it comes to managing wealth, the mindset and strategies of someone trying to get rich can look radically different from someone trying to stay rich. While both groups are financially focused, the psychology behind their decisions, and the tools they use, often diverge in important ways.
The "Get Rich" Mentality
Those aiming to build wealth are often driven by growth, opportunity, and risk tolerance. They’re typically younger or in a stage of life where time is an ally, and the downside of failure is still manageable. Their strategies reflect that focus:
- Aggressive asset allocation: Heavy tilt toward equities, private investments, or high-growth sectors.
- Leverage and scaling: Willingness to borrow or reinvest heavily to accelerate returns.
- Entrepreneurial thinking: Often willing to take concentrated risks in a business, career move, or investment thesis.
- Opportunity cost awareness: Every dollar sitting idle is a missed chance to compound growth.
The "get rich" investor plays offense. They’re climbing the mountain, focused on momentum, and are often more comfortable with volatility if it means the potential for significant upside.
The "Stay Rich" Mentality
Those who have already accumulated significant wealth operate from a different mindset: preservation, stewardship, and resilience. Their primary concern is maintaining wealth across generations, not just market cycles.
- Diversification and downside protection: Capital is spread across asset classes, with attention to liquidity and risk-adjusted returns.
- Tax efficiency: Building wealth isn’t just about returns, it’s about how much you keep.
- Estate Planning: Planning for and building a lasting legacy for the next generation to pass assets in a tax efficient manner while also teaching them how to build upon that legacy.
- Private placements and real assets: These can offer uncorrelated returns, cash flow, and inflation protection, often with less day-to-day volatility.
- Governance and purpose: "Why" becomes more important than "how much." Staying rich includes defining values, succession plans, and philanthropic goals.
The "stay rich" investor plays defense. They’ve summited the mountain and are now focused on securing the basecamp, guarding against erosion from taxes, inflation, poor decisions, or family misalignment.
Asset Allocation: “Get Rich” Investors vs. “Stay Rich” Investors
Understanding the differences in portfolio composition between average investors (we’ll call them the “get rich” investors) and ultra-high-net-worth individuals (we’ll call them the “stay rich” investors) can shed light on the distinct approaches to wealth management.
“Get Rich” Investor Portfolio Allocation
According to a survey by the Chartered Alternative Investment Analyst Association, the typical retail investor's portfolio is predominantly composed of traditional assets:
- Equities: ~60%
- Fixed Income (Bonds): ~30%
- Alternative Investments: ~5%
- Cash and Equivalents: ~5%
This allocation reflects a conventional investment strategy, focusing on publicly traded securities and limited exposure to alternative assets.
“Stay Rich” Individual Portfolio Allocation
In contrast, UHNWIs (those with a net-worth of $30 million or more) exhibit a markedly different asset allocation strategy. Data from KKR's 2021 survey reveals the following approximate distribution:
- Alternative Investments: ~50%
- Listed Equities: ~31%
- Fixed Income: ~10%
- Cash: ~9%
This significant allocation to alternative investments underscores a strategic emphasis on diversification beyond traditional markets.
Same Tools, Different Uses - And Why Most Investors Are Flying Half-Blind
Interestingly, the same financial instruments (stocks, real estate, trusts) can be used to either build wealth or seek to protect it. But how they're used depends on your stage of life, your tolerance for risk, and, most importantly, your clarity of purpose.
And here’s what we see over and over again: most investors either haven’t updated their approach as their wealth builds, or they are trying to use both approaches at once without realizing it. They’re taking unnecessary risks when they’ve already "made it," or they’re playing it too safe when they still need growth. Many are doing a lot of the right things, but not necessarily the right things for them.
That’s where The Burns Investment Group brings real value.
We help clients get a clear understanding of where they are, where they’re going, and what they’re really trying to accomplish with their wealth. Through thoughtful planning and open conversations about your "why," we cut through the noise and uncover the opportunities and threats you may not even know are there.
If you’re not working with us yet, chances are you’re leaving a lot on the table, whether that’s efficiency, financial confidence, or long-term impact.
Whether you’re trying to get rich or stay rich, we help you move forward with purpose, precision, and a strategy that fits.
If you would like to see if your investment style is the right fit for your long-term goals, and if you should be investing like you need to “get rich” or “stay rich”, email me at patrick@theburnsig.com.
Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.