It confuses me when I read finance subreddits that are filled with good discussions and ideas, then see rich people out there doing the complete opposite yet end up more successful. Like investing passively in VTSAX or other low cost index funds are recommend here, but wealthy people fork over money to a wealth manager who's unlikely to beat the market. When it comes to real estate, REIT's are much better without any headaches, buuut rich people invest in real estate properties anyway. Investing in private equity boggles my mind too because that's almost never worth it for the illiquidity.
I understand they can take more risks than the average people. My confusion comes from them going out of their way to make their investments more complicated. Why not just use index funds or REITs if they want to buy real estate? What's with the unnecessary risks?
Submitted September 20, 2020 at 10:54PM by Bayboyjet https://ift.tt/2FRr1ED
