High earners have more choices.
They could finance real estate endeavors. They could purchase multiple chains of a restaurant. They could do many things the rest of us only dream of.
Three reasons
1) with an initial investment of $5-10 million, this is a small fraction of their net worth, where as to you and me, this is all of our net worth
2) the return expected might be small (5-6%), but 5-6% of $5 million invested nets a higher amount than $1 million at 10%.
3) the investor is still in equities, these other investments diversify their risk and help their overall return.
See Magic Johnson or Donald Trump as good examples.
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