To be a top 1% earner in Canada, you need to make at least $586,900, according to data released in 2024 by Statistics Canada.
The wealthiest households accounted for almost two-thirds (64.8%) of Canada’s total net worth in the fourth quarter of 2024, with an average of $3.3 million in earnings per household. For contrast, the least wealthy earned an average of $84,600 per year, according to Statistics Canada.
Whatever the size of your portfolio, there are potential benefits to following the wealth-building strategies of the rich. Here’s how you can work to grow your wealth like the top 1%.
Diversify like the 1%
While stock portfolios make up the bulk of asset holdings among high net worth households, real estate and alternative assets have grown in importance and popularity.
Turns out ultra-high net-worth individuals and households generally have some form of alternative investment in their portfolio.
Fine art is one alternative investment that consistently outperforms the stock market in the long run. According to a report in Fortune Magazine, contemporary art outperformed the S&P 500 with a compound annual growth rate of 12.6% between 1995 and 2022.
In the past, fine art investments were reserved for the top 1%, but that’s no longer the case.
If you’re looking to diversify your portfolio in the fine art and collectibles market, Masterworks is a platform worth considering.
Masterworks is a top platform for retail and accredited investors to purchase fractional shares of artwork by iconic artists like Banksy and Basquiat.
Masterworks’ team scours the art market for the best deals, buys them at a discount, and offers these shares to members.
Their platform is easy to use, and the Masterworks team has been working since 2019 to realize representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year). See important Regulation A disclosures at Masterworks.com/cd
Diversify your portfolio today with a piece of fine art.
Real estate as a wealth-building tool
Another important asset that HNW investors consider a staple is real estate.
According to Knight Frank’s global survey of over 600 wealth managers that manage nearly US$3 trillion in assets, primary and secondary homes account for around 26% of the overall net worth of ultra-high net worth individuals in North America.
It’s clear that investors who own real estate tend to accumulate significantly larger portfolio earnings, over time, and this leads to larger and more substantive net worth gains.
While buying a home is one strategy, not everyone is comfortable with becoming a homeowner, a landlord or tying up significant sums of money in one or two properties.
That doesn’t mean you can’t invest in real estate. While accredited investors can find private equity crowdfunding platforms that specialize in real estate, retail investors can gain market exposure to real estate earnings using Real Estate Investment Trusts (REITs).
REITs own and operate a range of real estate properties, including office buildings, apartments, hospitals and malls. Investors earn returns through dividends and potential price appreciation of the portfolio of properties — but you aren’t forced to deposit large sums as a down payment.
Instead, you buy and sell the shares of REITs — making it an attractive option for those who want exposure to the lucrative real estate market, without the hassle of property ownership.
You can buy and sell REITs on the stock market through a self-directed online trading platform like CIBC Investor’s Edge, where you’ll pay low commissions on trades and have no or minimal account maintenance charges, depending on the size of your portfolio.
Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100†. Offer ends September 30, 2025.
How to find the right asset mix
It can be tricky to figure out the right mix of investment types at your individual income level, as variances in net worth and financial goals make generalized advice difficult to follow.
If you’re looking for peace of mind, hiring a financial advisor can help you to feel good about your money moves.
Sources
1. Statistics Canada: High income tax filers in Canada
2. Statistics Canada: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, fourth quarter 2024
3. Knight Frank: The Wealth Report
4. Fortune Magazine: Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
