The question of how the ultra-wealthy, the 1%, accumulate their wealth has long been a puzzling one. Because while stock investment is often seen as a key driver of wealth, research reveals that it's not the primary source of wealth for the 1%. So, what is?
Research suggests that the 1% typically generate their wealth through the following avenues:
1. Entrepreneurship: Owning or running successful businesses is a key way the 1% generate a significant portion of their wealth. For example, entrepreneurs like Jeff Bezos (Amazon) and Mark Zuckerberg (Facebook) are among the top-ranked wealthy because they have built successful business empires.
2. Inheritance: Receiving wealth through inheritance, trusts, or family businesses is another significant source of wealth for the 1%. We know this because, according to a study by the Economic Policy Institute, in 2020, the top 1% of households in the United States held approximately 40% of the country's total wealth, and a significant portion of this wealth is inherited.
3. Real Estate: Investing in and developing real estate—which provides rental income, appreciation, and tax benefits—is a key wealth-generation tool for the wealthy. For instance, real estate moguls like Donald Trump and Stephen Schwarzman have built vast fortunes through their real estate investments.
4. Private Equity: Investing in and managing private companies as an equity member generates significant returns for the 1% also. This is why private equity firms like KKR and Blackstone are popular investment choices among the ultra-wealthy—they have consistently delivered high returns to their investors through equity investing.
5. High-Paying Careers: High-income careers in finance, law, medicine, or other lucrative fields are another means the ultra-wealthy generate their wealth. According to Forbes, in 2020, the top 10 highest-paying jobs in the United States included physicians, lawyers, and finance professionals.
But what about those looking to build wealth without starting a business or inheriting millions? This is where investing with strategic investment manager like Zest comes into play.
Zest helps individuals tap into high-yield investment opportunities across cryptocurrency, stocks, real estate, bonds, and fixed deposits. As a result, Zest has consistently delivered a minimum average annual return of 24%—a performance that is similar with the wealth-building strategies of the ultra-rich.
With professional management and a focus on maximizing investor returns, Zest provides a structured path for those seeking to grow their wealth intelligently.
So, while you might not necessarily have direct access to the wealth creation avenues available to the 1% as outlined above (entrepreneurship, inheritance, real estate, private equity, and high-paying careers), you can still start building wealth by leveraging the comprehensive wealth-generation strategy of investment manager(s) like Zest. Because with Zest, you don’t have to be a billionaire to start generating wealth like one.
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Disclaimer:
Investing involves risks, including the potential loss of capital. Past performance does not guarantee future results. Always conduct your own research and consider seeking advice from a licensed financial professional before making any investment decisions.