Episode 3: Portfolio Allocations Of The Ultra Wealthy

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Welcome back to Wealth Strategy Deep Dives—your shortcut to building real, lasting wealth. In this episode, I break down the cash flow strategy used by the ultra-wealthy to scale capital, protect their assets, and generate tax-efficient passive income.

We start with the most powerful source of capital—you. Whether you’re a business owner or a W2 earner, your income is the launchpad. But instead of spending it, the wealthy channel it into tangible assets like real estate and energy, stack strategies like infinite banking, and create a rinse-and-repeat wealth engine that multiplies over time. I walk you through the step-by-step cycle that turns earned income into legacy wealth—and how to start doing it yourself.

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How’s it going, everyone? And welcome to a special solo series of Wealth Strategy Secrets Of The Ultra Wealthy. I’m your host, Dave Wolcott. We get a lot of the same questions from our investors about infinite banking, tax efficiency, asset protection, strategy stacking, and how to actually build wealth outside of Wall Street. And we get it.

We know you’re busy. So in this series, I’m breaking down complex wealth strategy topics into short tactical episodes that you can actually use to build legacy wealth. Whether you’re just starting your journey or fine-tuning your portfolio, these episodes are designed to give you high-impact insights in just a few minutes. So let’s dive in. In today’s solo episode, we wanted to talk about portfolio allocations of the wealthy.

One of the groups that we follow very closely and are actually members of is Tiger Twenty One. Tiger Twenty One actually boasts about 1,300 members, and the average net worth in that community is a hundred million. That’s the average net worth. And they put out a quarterly report that shows the adjustments in their allocations, how members are allocating across different asset classes. But I’m going to give you a representative example that’s really kind of an average of what they have.

And in this case, we break it down by a few key categories you can see here on the chart. So the first one being real estate. Real estate is generally about 26 percent of that portfolio allocation. They next have the next bucket about 25% in private equity, and the third one being public equities at about 22%. The next big one is cash at 12% and then fixed income at 9%.

Now, the real takeaways here are seeing that public equities literally only have an exposure of 22%. Right? So this really shows that the ultra wealthy are not putting all of their assets into the stock market and then diversifying into some type of sixty-forty type split between stocks and bonds. They’re actually using maybe one quarter of their wealth to put into public equities, and then they’re diversifying into private equity and real estate in these other vehicles. Why?

Well, that’s because they’re investing in things like real estate and private equity that can provide what we like to call the trifecta return, where you can get tax efficiency, passive income now, and forced appreciation in the future. And, typically, over time, you can see historically the data points that private equity and real estate have actually outpaced public equities. So I think this is a great representative example of how the high net worth and ultra high net worth are allocating capital in today’s markets and not actually having it all tied up in private equity. Thanks for tuning in to our special solo series. If this episode sparked something for you and you’re ready to learn more, head over to holisticwealthstrategy.com and download a free copy of my book.

You’ll also get access to our investor community where we share exclusive educational content, new opportunities, and resources designed to help you accelerate your path to freedom. And if you wanna take it even further, book a call with our team to learn about our virtual family office services or join our mastermind group where we go deep into building true generational wealth. I’ll see you on the next episode.