Many strategies used by ultra-high net worth individuals are also applicable to ordinary Americans who are looking to build their wealth, writes Ben Fraser for Forbes.

The Tax Game

Among the top ones is the tax game and knowing how to dominate it. All of the top earners have figured out a way to, as a percentage, pay less in taxes than average workers. If you are trying to achieve the same, focus on growing your “balance sheet” instead of your W-2 income.

This way you will be growing your net worth instead of the income you earn from working. For example, owning a rental property increases your total net worth and has its own tax advantages.

Economic Tides

It is also important to understand economic tides, or the bigger economic undercurrents that influence short-term activities. This means that you have to look at the larger fundamental drivers of supply and demand that will affect the economy for years instead of current oscillations of the stock market or the latest headlines.

Alternative Investments

The majority of ultra-high net worth individuals have significant portions of their investment portfolios in alternative investments, which are things other than stocks and bonds. Despite the risks, alternative investments provide higher returns with less volatility than the more common markets.

Debt

There is such a thing as good debt. Leveraging debt that is used to acquire assets can be a significant tool in building wealth. This way, the capital is in the investments, which are most likely earning additional returns. Additionally, a debt of this kind can often have a lower interest rate than what the tax liability would be after liquidating an investment.

Fred Hubler, CEO and Chief Wealth Strategist at CCWMG and forbes.com contributor, created a website to educate investors on alternative investments. Got-alts.com is a free site that gives examples of what type of alternative investors users now have access to.

“I built our firm,” said Hubler, “to help individuals invest like large endowments and foundations. This requires access to investments that are not stocks and bonds. Twenty years later, we have clients in 28 states, so we must be doing something right,”

Risk-Adjusted Returns

It is important to know that not all returns are equal, even if two different investment opportunities have the same return. One could have a higher risk factor, which has to be factored into your assessment.

Read more ultra-high net worth strategies in Forbes.