Richard Cayne Meyer Asset Management Ltd Tokyo on Wealth Protection – Know Thy Enemy

While wealth creation requires a whole lot of effort in itself, Richard Cayne of Meyer Asset Management Ltd Tokyo mentions that protecting your wealth as you grow is also of utmost importance. Wealth protection is not only a concern for beginners, but also those who have a considerable asset base to begin with. Richard Cayne Meyer Asset Management Ltd Tokyo explains that one of the biggest threats against which wealth needs to be protected is inflation. If it weren’t for the effects of inflation, those of ultra-high net worth would never have to worry about working hard or making their investments perform better year after year. However, since inflation is a harsh reality that affects high net worth as well as ultra-high net worth individuals; one needs to safeguard their assets against the same.

One of the top considerations for any investor, Richard Cayne of Meyer Asset Management Ltd Tokyo mentions inflation to be a wealth destructor. He goes further to explain that by neglecting the growth of your portfolio, your store of assets actually begins to lose their value. For instance, to match the purchasing power of a $100 bill today, you would need to have $108.16 in your pocket two years from now, considering 4% as the rate of inflation. While this may seem like a small example, imagine the extent of its impact when the amount is magnified to thousands or even millions. Also, while there is little that one can do to avoid being affected by inflation, there is plenty one can do in order to make sure that their assets stand the test of time.

According to Richard Cayne of Meyer Asset Management Ltd Tokyo, the solution to the threat of inflation is simple; it is to find an investment vehicle that offers returns outpacing the rate of inflation. For instance, if you begin with US$20,000,000 in your kitty today and your portfolio achieves a growth of only 2% as against a 4% rate of inflation, then your purchasing power will actually be down by US$400,000 the following year despite having earned a profit. Therefore, Richard Cayne of Meyer Asset Management Ltd Tokyo explains that your actual earnings are only those that have outdone the rate of inflation. In other words, if your portfolio simply matches the rate of inflation in your economy, then it has done nothing to grow your wealth. Richard Cayne of Meyer Asset Management Ltd Tokyo further adds that for those with a sizeable asset base, it is best to take the help of an experienced financial advisor in order to protect wealth, since a professional consultant will help optimize your portfolio’s performance in such a way that it outdoes the rate of inflation year after year, thereby ensuring its safety in the long run.