I Asked Grok How To Invest Like a Rich Person

I Asked Grok How To Invest Like a Rich Person — Here’s What It Said

Budrul Chukrut / SOPA Images

The definition of “rich” depends on who you ask, but having a couple million dollars at your disposal is a pretty good place to start.

In its 2024 Modern Wealth Survey, Charles Schwab found that Americans think it takes an average net worth of $2.5 million to be considered wealthy. Unless you were born rich, you’ll need a combination of hard work, good income, smart money decisions and luck to attain that level of wealth.

Find Out: 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth

In most cases, you’ll also need a knack for savvy investments. But what happens after you get rich? What’s it like to invest like a rich person?

GOBankingRates asked artificial intelligence (AI) assistant Grok that question. Here’s what it said.

Also see how to get rich off stocks, according to ChatGPT.

Focus On Core Principles

Investing like a rich person isn’t that different from investing like anyone else. You’ll still need to follow many of the same principles; you’ll just have more money,

As Grok noted, those principles include prioritizing long-term growth and diversification while also pursuing professional advice and a smart tax strategy. You’ll also want to avoid letting emotion drive your investment decisions while shying away from investments you don’t fully understand.

“Wealthy investing is about discipline, access and optimization,” Grok said. “Start small, scale with knowledge and seek professional guidance as your portfolio grows.”

Check Out: How To Turn $100K Into a Million: Your Step-by-Step Guide

Steps You Should Take

Here’s a rundown of some of the things rich investors do, according to Grok.

Diversify across asset classes: Rich people spread their money across stocks, bonds, real estate, private equity and alternative investments, such as hedge funds or venture capital. This kind of balanced portfolio reduces risk and helps you capture growth opportunities.
Access private investments: Many wealthy individuals allocate part of their money to private entities, whether it’s a startup or a venture capital firm. You’ll usually need a lot of money to gain access to these investments, although platforms such as AngelList or crowdfunding sites can provide entry for smaller investors.
Work with financial advisors: One advantage of being rich is that you can afford to hire professional wealth managers and tax advisors. But even if you’re not rich, you can still find affordable financial advisors and robo-advisors. It’s also a good idea to network with other successful investors to see where they are putting their money.
Use tax-advantaged structures: One thing everyone should do is maximize contributions to tax-deferred investment accounts such as IRAs or 401(k)s. Wealthy investors also use trusts, family offices or offshore accounts to reduce their tax liabilities, though this requires hiring legal and tax experts.
Focus on long-term value: This is one of the golden rules of investing — put your money into quality assets with strong fundamentals. Do your research to find blue chip stocks or businesses with a strong track record of sales and profit growth. These assets will help you grow your wealth over the long term. You should avoid chasing short-term trends or speculative assets.
Leverage debt strategically: Rich folks often finance their investments with low-interest loans — especially when it comes to real estate or business ventures.

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This article originally appeared on GOBankingRates.com: I Asked Grok How To Invest Like a Rich Person — Here’s What It Said

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