Wealthy Investors Use Tax-Free Life Insurance, Roth IRAs for Multigenerational Gains

Wealthy investors employ sophisticated strategies such as private placement life insurance and the “buy, borrow, die” approach to minimize taxes and preserve wealth across generations, although some similar tax-advantaged options like Roth IRAs are accessible to average investors. Long-term investing remains critical amid market volatility, with experts recommending diversified global funds such as Vanguard International High Dividend Yield and T. Rowe Price Global Allocation to balance growth and risk. Surveys indicate that many investors would choose to put $10,000 into stocks, retirement accounts, or real estate, with financial advisors emphasizing the benefits of low-cost, diversified index funds and cautioning about illiquid investments like real estate. Popular investment vehicles include the S&P 500 index and ETFs, which offer transparent, cost-effective access to broad market segments, including niche areas like technology and environmental sectors. Emerging trends in 2025 include AI-focused ETFs and cryptocurrency systematic investment plans (SIPs), which appeal to younger, tech-savvy investors seeking higher returns despite increased risk. Socially responsible investing through green bonds also gains attention for funding environmentally friendly projects, reflecting growing investor interest in sustainable finance.