Most Americans build wealth through their home and retirement accounts. But as net worth increases, the composition of wealth changes dramatically.
According to data highlighted by Visual Capitalist, middle-income households tend to have the majority of their net worth tied up in their primary residence and retirement accounts. Meanwhile, the top 1% allocate far more capital toward private businesses, investment real estate, and alternative assets.
The key difference? Wealthy investors focus less on consumption assets and more on cash-flowing and appreciating assets.
That shift often includes:
- Private credit
- Real estate
- Business ownership
- Alternative investments
- Income-producing assets
For many affluent investors, the goal is no longer simply growing a portfolio. It becomes:
- generating consistent cash flow,
- preserving capital,
- reducing correlation to public markets,
- and building multiple streams of income.
This is one reason private investments have become increasingly attractive to high-net-worth investors and family offices. Visual Capitalist noted that business equity and real estate represent a substantial portion of the assets held by the wealthiest households.
At Eppler Capital Funds, we work with investors who are looking beyond the traditional 60/40 portfolio and seeking opportunities focused on dependable income and asset-backed strategies through private markets.
Our promissory note fund was designed with that philosophy in mind, providing investors access to private lending opportunities focused on consistent monthly income and reduced exposure to public market volatility.
As wealth grows, investment strategy often evolves alongside it.
The question becomes: “How do I create more predictable and diversified income streams?”
If you’d like to learn more about how private credit and alternative investments may fit into your portfolio, I’d be happy to have a conversation.