Dec 22, 2022

The Executive’s Guide to Wealth Preservation

— Wealth creation can be challenging, but it is not the end destination of an individual’s financial journey.

3 minutes

By Precious Chukwuemeka

If there was a significant distinction between "old" and "new" money, it would be that the former has succeeded in effectively mastering the art of Wealth Preservation. This is because, although wealth creation can be the most challenging part, it is not the end destination of an individual’s financial journey. 

Wealth preservation means ensuring that your assets are not decreasing or at a loss. By focusing on lower-risk asset classes, such as cash and fixed-interest assets, wealth preservation ensures that the wealth you have painstakingly accumulated is not diminished as a result of risk or poor management of cash and debt. 

There are critical keys to unlocking the phase of wealth preservation for the ultra-high net worth investor. This article explores the different factors that form the basis of the ultra-high-net-worth investor’s wealth preservation strategy: 


  1. Work with a financial advisor or planner to create a comprehensive financial plan that covers budgeting, taxes, retirement, risk management, estate planning as well as fund management. The comprehensive plan will inform the investment strategy to be implemented in the wealth preservation phase. Financial advisory becomes even more of a necessity because of the higher stakes involved, in terms of funds, assets and investments. 


  1. Effectively managing income earning assets is the first part of the two-pronged strategy of wealth preservation: proper management of cash & debt and risk management. Through the process of wealth creation, it is presumed that multiple income-earning assets have been established; at the stage of preservation, it becomes necessary to properly manage those income-earning assets and possibly scale them to guarantee increased and constant in-flow. 


  1. While the process of wealth creation might require investing in some risky assets, the wealth preservation stage leans towards the opposite: low risk investing. This is the second part of the investment strategy, which involves creating an equilibrium between effectively managing earning assets, and concurrently minimizing risk. This is the reason most high-net-worth investors take a passive approach to investing, by buying and holding securities for the long term, to hedge against short-term market predictions and fluctuations. Or, alternatively, they invest in securities which pose no risk to their capital growth. 


  1. Just as in the process of accumulating wealth, debt and expense management are at the focal point of wealth preservation. The key thing is to keep expenses at a significant deficit of one’s income and effectively settling debt.  


  1. In your wealth preservation strategy, it is important to diversify and consolidate your assets. The point of diversifying your asset portfolio, in the first instance, is to spread and consequently lower the risk of loss. But for the ultra-high net worth investor, consolidation is just as pertinent. While diversification is about how you invest your money (in securities), consolidation is about where you keep your money. Consolidation is simply combining assets, liabilities and other financial from different financial institutions and putting them in one place. This makes it easier to implement and tweak changes within your strategy. 


GDL's goal is to assist you in creating transgenerational wealth, which impacts not only your individual life but ultimately, society. For nearly a decade, we have successfully launched premium products like the Luxury Yield Note that empower our clients to reach and surpass their financial goals.

Visit to access all the financial tools we have in our arsenal to launch you to financial success. 

Read these next ...

Building Wealth In Your 9-5
...billionaires are not made within the structure of white-collar jobs.
4 minutes
5 Investment Mistakes to Avoid in 2023
As the year winds down, it is typical of individuals to take a reflective stance on what was and what was not achieved during the year
3 minutes


Get Answers Here.

Answers to the questions we believe you might have in mind.


Ready to Get Started?

Begin your journey to financial freedom. Make your money work for you. Let's go!

Join The Club.

Subscribe to our Newsletter and be the first to receive updates on our new investment opportunities and promotions.