Secret Fast-Track Strategies Wealth Consultants Use but Never Share

*This post has been reviewed by an Illinois Registered CPA. However, when making important financial decisions, it's best to speak with your financial advisor.

Last Updated on February 17, 2025

Have you ever wondered how the 1% stay ahead of the financial curve? Imagine a staircase leading straight to success, and each step is a strategy that only the wealthiest people know. The wealthy teach their kids how to handle and manage wealth. It’s not a guarantee of success, but it’s better than the alternative which is the financial education most of us received growing up… Nada…

However, it’s not only about having money saved up—it’s about knowing what to do with it once you have some.

Wealth consultants, the not-so-secret keepers of financial alchemy, have a bag of tricks that they’ll rarely share publicly. In this blog post, we’ll unveil some of these closely-kept secrets.

Studies show that nearly 70% of wealth growth for high-net-worth individuals comes from strategic investments and financial planning. With these numbers on the table, it’s clear that understanding wealth management is crucial in today’s economy.

Keep reading to explore the hidden insights that could redefine your financial future.

1. Diversification: The Not-So-Secret Secret

Diversification might sound fancy, but in essence, it’s about not putting all your eggs in one basket. Wealth consultants swear by this tactic because it minimizes risks. If one investment tanks, others can pick up the slack, if you chose them correctly.

True diversification is about having assets that tend to go up in value when others in your portfolio go down. Not just having a bunch of different things you’ve invested your money in.

Data from Morningstar shows that properly diversified portfolios can yield more over a decade compared to non- or poorly-diversified ones. Their surprising conclusion is “the simpler, the better” which is interesting given how often we hear confusing gobbledy-gook on this exact subject.

2. The Power of Compound Interest

If money were a snowball, compound interest would be the downhill mountain slope. Einstein supposedly dubbed it the eighth wonder of the world—and who are we to argue?

The simple act of reinvesting your earnings makes your portfolio grows faster than you can grow it simply putting money in periodically. According to the Rule of 72, a 6% annual return will double your investment approximately every 12 years, while a 25% annual return doubles roughly every 3 years. Do you now see why credit card companies never go belly up?

3. Real Estate: More Than Just ‘Location, Location, Location’

Real estate investment isn’t just about buying and waiting—it’s a dynamic strategy. Wealth consultants know that timing, market trend analysis, and property improvement are keys to maximizing returns.

If you have the capital to do it, renovated properties can offer a return rate of up to 20%. Imagine the house flipping shows, minus the dramatic arguments or the drawn out reveals. Just straight money movement in the hands of the “Haves” and not the “Have Nots”.

4. Tax Optimization: Legally Keep More Cash

Why pay more when you can, legally, pay less? Tax optimization is more than a New Year’s resolution; it’s a vital strategy. Wealth consultants leverage tax-efficient investment vehicles and other procedures to help their clients keep more money.

Strategic tax planning can save you money annually. Keep Uncle Sam happy, while keeping more in your pocket.

5. Smart Spending: Because It’s Not What You Make, But What You Keep

Wealth is rarely about the car you drive but often about the strategy you deploy with your funds behind the scenes. Wealth consultants tell us to spend smart by cutting unnecessary costs while investing in values-driven purchases.

Many wealth managers feel that strategic consumer spending is vital for wealth preservation. It’s about being financially savvy, not miserly hoarding gold doubloons in a closet.

6. Passive Income: Make Money While You Sleep

Wouldn’t it be amazing if your bank account got a workout while you binge-watched your favorite series? Wealth consultants often preach the benefits of passive income streams like rental income or dividends.

My only caveat to this endeavor, try your damndest to buy rental property with cash. Debt can undermine even the best investment if you run into cash flow problems.

With that caveat out of the way… Who doesn’t want to get paid while sleeping or (my favorite) go to the mailbox and receive an income statement instead of a bill?

7. Emotional Intelligence: Your Hidden Financial Ally

Money management is not just numbers; it’s also about understanding and controlling our emotions. Wealth consultants believe in guiding their, and their client’s decisions through the lens of emotional intelligence.

According to Psychology Today, high emotional intelligence can correlate with better investment decisions. It’s financial Zen at its best.

8. Stay Educated but Beware of Overlearning

I have a friend that just can’t stop getting degrees. At 50 years of age, I try to tell him that he could spend his time and money in a better way, but, hey, what do I know…

To be clear, I truly believe that Knowledge is power, but schooling for the sake of showing off letters behind one’s name can paralyze you financially. It’s actually pretty easy to stay updated on what you should be doing for your wealth without falling into the trap of ‘paralysis by analysis.’

Once again, we’re not saying “Don’t Learn”. Keep learning, but then do something for goodness sake.

9. Defining Success on Your Own Terms

Success is subjective. We encourage everyone to create personalized definitions of success, which can often differ vastly from societal norms. It’s about choosing personal fulfillment over public perception. This can be VERY difficult to do.

Success for some might mean retiring early, or starting a charitable foundation and working until you’re 90. Choose your own adventure because fulfilling one’s personal goals will bring a feeling of genuine accomplishment in life.

10. Continuously Reevaluate and Adapt

The world changes—fast. Wealth consultants know the best strategies are adjustable. Constant reevaluation and adaptability are crucial for sustaining growth and resilience.

According to World Finance, adapting has helped top investors sustain profit margins even during economic downturns. Flexibility wasn’t just for yoga classes, after all.

Closing: Your First Step to Financial Mastery

Obtaining wealth for a brighter future might seem like a near impossibility, but these strategies we’ve revealed can ultimately pave the road to financial mastery. If you learn to leverage proper diversification, emotional intelligence, and adaptability, your wealth goals can start to move within your reach.

Which strategy will you implement first? The financial landscape is ever-evolving, but with these proven methods, you’re equipped to transform your trajectory.

Feel inspired or have thoughts to share? Let’s discuss your favorite wealth-building hacks in the comments. Ready, set, invest!