5 Ways Millionaires Are Quietly Building and Sustaining Wealth Right Now
Written by
Kerra Bolton
Edited by
Jenna Klaverweiden
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The wealthy quietly use under-the-radar strategies to protect and grow their assets, especially during times of inflation, market volatility and economic uncertainty.
These tactics go beyond traditional investing and focus on tax efficiency, asset protection and long-term growth. From sophisticated trust structures to lifestyle-aligned investments, here are five ways millionaires are quietly building and sustaining wealth.
Lifestyle-Aligned Investing
A growing number of wealthy investors are putting money into assets that align with their values, interests and lifestyles.
“Think: boutique resorts, co-investments in passion projects (like sports teams or high-end retreats) and farmland with regenerative ag upside,” said Chad Willardson, wealth manager and founder of Pacific Capital. “These aren’t just ‘alts.’ They’re strategic plays that hedge inflation, offer tangible returns and align with the life they actually want to live.”
Cash Value Life Insurance
Cash value life insurance (CVLI) has become a popular tool for high-income individuals seeking to grow their wealth in a tax-efficient manner.
It offers tax-deferred growth, tax-free access through policy loans and a tax-free death benefit, helping wealthy clients protect their legacy while reducing exposure to future capital gains and income taxes.
“The wealthy aren’t chasing returns; they’re chasing control,” said Jim DesRocher, financial advisor and founder at TrueView Financial. “In this environment, strategies that offer tax flexibility and predictability are more valuable than ever.”
The Swap Power Trust Strategy
One powerful but under-the-radar strategy wealthy individuals could use to protect and grow their wealth is setting up an irrevocable trust paired with a “swap power.”
“By gifting assets into the trust now, all of the future appreciation on those assets happens outside of trustor’s taxable estate, which is a straightforward way to shelter significant growth from future estate taxes,” said Jake Howell, an estate planning attorney with Howell Estate Planning.
Wealthy individuals could use the swap power to trade cash or low-growth assets from their estate for valuable assets that have grown a lot inside the trust. In simple terms, they’d swap something with little or no gain for something with big gains. This would allow the trust to grow over time without triggering estate taxes. Then, once those assets gained value, they could swap them back into their estate and replace them with new assets that’d be expected to grow more in the future.
“In essence the unrealized gain reenters the taxable estate, but when they die, those assets get a step-up in tax basis,” Howell said.
Focus on Tax-Efficient Investments
Zach Wainwright, founder and CEO of Twin Oak ETF Company and an investment advisor who works with family offices and private wealth management firms that serve ultra-wealthy families, said that one of the biggest hurdles to building long-term wealth is realizing taxable gains.
“We see family offices staying invested through volatile times because taking a +50% tax hit on an investment is a far tougher pill to swallow than staying invested for the long-term through uncertain times,” Wainwright said.
Increasingly, families are focusing on tax-efficient investments, such as exchange-traded funds (ETFs), over private funds, prioritizing long-term strategies, like buy and hold, to compound wealth over time.
“At the margin we see families pivoting towards liquid, risk reducing investment vehicles, like ETFs relative to private funds, but it takes time to rebalance,” Wainwright said. “If families have cash now, they are spending more time evaluating ETFs and tax aware solutions to start, rather than getting caught in legacy alternative allocations they would have chosen historically. It is not sexy, but buying and holding for the long term is how families compound wealth.”
Private Investments With Purpose
Private investments and real assets are attracting increasing attention as wealthy investors seek ways to diversify beyond stocks and bonds.
“We’ve seen more interest in private investments and real assets to complement traditional portfolios,” said Rob Edwards, managing director and senior PIM portfolio manager at Edwards Asset Management. “These opportunities can be compelling, but they often come with hype and complexity. So it’s important to do your homework and understand that a great investment and a great investment for you aren’t always the same.”
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