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Stealth wealth, as explained by Experian, is all about financial privacy. In today’s society, spreading wealth on social media, or even just among colleagues and friends, can make you a target for exploitation. Whether bad actors are trying to hack your accounts or your loved ones come with their hands outstretched, presenting your earnings can have unfortunate consequences.
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Keeping information about your income and wealth private can protect you from a variety of uncomfortable and potentially troubling situations. Persons who practice stealth wealth often have substantial amounts of money at their disposal, but few are aware of them. They keep it under wraps to protect their wealth.
For many people, hidden wealth may be one of the best ways to manage your money and create a stable financial future. Here’s what you need to know about the money trend.
What is stealth wealth?
It’s unclear when the trend began, but in 2008, at the height of the global financial crisis, the Tampa Bay Times reported on the impact the declining economy was having on recently minted millionaires.
As mentioned earlier, millionaires were not as willing to flaunt their wealth as their predecessors. Many of them lived more low-key lifestyles, patiently waiting for the economy to turn around. They held on to their wealth rather than spend it on material things, and those who did were richly rewarded.
Fast forward 15 years and many of the OG stealth assets have children coming of age or entering adulthood. They likely learned from their parents’ financial viability and played coy with their fortunes. Whether they’ve made a name for themselves in business or just make a living off family money, they’re not that willing to flaunt their wealth to the world.
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What are the advantages of Stealth Wealth?
There are a variety of benefits to practicing stealth wealth. One of the most important is that being silent about your net worth can put off bad actors. With most financial information stored online, hackers have come up with innovative methods to infiltrate accounts.
Whether it’s SIM card swapping or phishing, criminals can be attracted to people they know have great wealth. Cryptocurrency holders are particularly vulnerable to this type of hacking.
Keeping your assets secret can also help you stop unwanted money requests from friends or extended family. If people are unaware of your wealth because you have chosen not to flaunt it, they are less likely to ask you for money.
How to achieve stealth wealth
As explained by Financial Freedom Countdown, there are several steps you can take to achieve stealth wealth. Secret wealth is about keeping the amount of money you have private. This starts with not discussing your wealth with others.
Next, you should avoid posting how you spend money. Make your social media accounts private so only the people you want to know about your recent vacation can see your pictures.
Finally, you can set up a trust to protect your wealth. A trust is one of the best ways to provide for your loved ones without the information being broadcast.
Why more and more people are choosing Stealth Wealth
As during the global financial crisis, we are currently in a period of economic instability and uncertainty. To avoid financial hardship, people need to take a hard look at their lifestyle and the way they spend money. By living a more tax-responsible life, they can ensure stability in the future when the economy starts to turn around.
Practicing stealth wealth now can help you withstand market fluctuations. It can help you provide for your family and allow you to live comfortably without worrying about people coming to you when they need money. Stealth wealth requires a different mindset, but it’s not impossible to achieve.
If you’re not sure where to start, one of the best places to start is with a financial advisor. Someone with extensive investing experience can help you understand the best place to invest your money while avoiding a public display of your wealth.
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