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The Biggest Myth About Wealthy Investors (and what actually works)
Bryan Hasling, CFP®
February 27, 2025
Every once in a while I get an itch to do something a little spicy with my portfolio.
Make no mistake. The current formula is dialed in and works wonderfully. It’s helped my own family build a strong nest egg and earn a return we’ve been more-than-happy with.
Our investment philosophy boils down to the following:
low-cost “index funds”
aimed for long-term growth, with a small cushion for potential needs and buying opportunities.
not overly-concentrated in any specific asset or sector
no market timing or daily activity
That’s it. Every time. Rain or shine.
The research suggests it, and my professional experience proves that it just works.
So why on God’s green earth would I ever want to mess with that winning formula?
When investing is simple, you can feel like you’re missing something… more.
Extra cash to invest? —> Index it!
401(k) rolled over to your IRA? —> Index it!
NVIDIA stock is popular and you want in? —> It’s the top holding of your index funds already.
Index and be happy!
For millions of investors - my family included - it really is that simple.
But the fact that it feels so simple is exactly what can make it so hard.
I’ve been building wealth this way for years, in a new tax bracket. Surely it’s time to graduate to something new, better. Right?
The biggest secret about investing for high net worth families is that they don’t need a more-unique investing strategy than the simple one I described.
If one strategy works great for you, it doesn’t work less-good for someone else.
So while high net worth families might want something different, more, it doesn’t mean their financial livelihoods need anything different.
The same lean chicken and sweet potatoes diet that works for the college kid also works for the middle-aged soccer mom.
Healthy recipes don’t discriminate. They just work.
So again, I ask, why would we ever want anything different?
1 - We just can’t help ourselves.
We all want to be better than the average.
I can do better. I’m smarter. Or older. Or richer.
So we buy ‘The Intelligent Investor’ on amazon, read Warren Buffett’s annual letters, watch earnings reports, and read updates the Federal Reserve.
Then place our bets.
For some, this works. For most, it probably won’t.
Even if it does, it becomes an all-consuming distraction. Time better-spent pretty much anywhere else.
Most people need to learn this the hard way. Where they eventually accept that…
Perhaps the simple approach - the one I can stick with, that gives me a sense of calm & control - is the best for me.
2 - Once we have wealth, we have access to “better” opportunities.
This one is complicated.
Wealthy people do have special access to more, unique opportunities.
By law, many private deals - like real estate development, or Startup Investing - require you to be an ‘accredited investor.’ You must have either a 7-figure net worth, a very high income, or be a licensed advisor.
But just because you are eligible, does not make the opportunities better.
The stakes are considerably higher.
For starters, minimum buy-ins can be quite high. Then that money is locked away until there is some ‘liquidity event', which may or may not ever come around.
Most importantly, your chances of losing it all are greater than ever.
Accepting those risks, some deals can certainly provide extraordinary returns. But it is not without risk, the greatest of all is total loss, and quite a bit of anxiety and distraction.
Even if you own the winning strategy, human nature will always crave more.
And if you have that desire, you just need to experience it for yourself.
But we have to do it in a safe-and-isolated way.
Want to experiment with a bet? —> don’t bet the farm.
Choose a (very) small % of your portfolio - an amount you could lose that wouldn’t implode your financial plan - then sit on your hands and wait for the results!
This is exactly what I do when I want to spice things up.
But I sleep great knowing that 99% of my net worth is dialed in to help my family reach our long-term goals, which is more gratifying than anything else.
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