$10 Million Net Worth Lifestyle
Investors with high or ultra-high net worth have access to many financial opportunities, including investing in diverse assets and building portfolios of various types of investments. While someone who enjoys a $10 million net worth lifestyle should take advantage of these opportunities, they may still face problems with managing their wealth. Hence, many seasoned investors turn to wealth management firms for assistance. At Pillar Wealth Management, we offer services specifically for investors with $5 million to $500 million in liquid investment assets. Investors with $5 million or more in liquid assets can learn about some of our wealth management strategies by requesting a copy of our book 7 Secrets To High Net Worth Investment Management, Estate, Tax, and Financial Planning.
The Challenges of a $10 Million Net Worth Lifestyle
Investors who dream of becoming multi-millionaires are often surprised when they reach their net worth milestones. This is usually because they understand they still have many important challenges to overcome. Please talk with one of our wealth managers to learn more about the challenges of a $10 million net worth.
A person enjoying a $10 million net worth lifestyle will still face challenges that individuals with a lower net worth do not experience. These include:
Making Smart Investment Decisions
You may already possess plenty of investment expertise acquired from building your $10 million net worth primarily through investments. However, many investors still struggle to make the right choice when it comes to complex investment decisions.
For example, you may want to invest in an up-and-coming industry sector. However, you may be unfamiliar with the market trends in this sector or the key companies that are expected to grow rapidly in the near future.
As an investor, you are likely to be familiar with the concept of taking risks to attain higher rewards. However, making uninformed investment decisions leaves you open to large losses that can negatively impact your portfolio. You can learn more about making safe investments by requesting a copy of our book The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.
Managing Your Portfolio
Any investor with a growing portfolio will eventually reach the point where portfolio management becomes too challenging to handle on their own. This usually occurs when they have amassed a large number of assets of various types.
Monitoring all these assets requires time and energy that the investor does not possess. As a result, they are forced to choose between taking care of existing assets and researching new ones. This strategy rarely works out, as it often introduces portfolio inefficiencies. Investors that wish to improve their portfolio performance using tried and tested strategies can read our special guide.
Preparing for Retirement
You may think that investors with $10 million in savings are likely to have the retirement they envisioned. While wealthy investors are less likely to run out of savings during retirement, they may still face many challenges.
For example, an investor who is used to spending millions on luxuries each year may be reluctant to tone down their spending habits in retirement. This may lead to their savings running out fairly quickly.
Similarly, investors may wish to send their children to a prestigious university for their higher education. However, they may be unable to keep up with university fees due to having limited savings.
Each of the above issues can be solved with the right type of retirement planning. The good news is that investors have more opportunities to grow and protect their retirement than ordinary individuals. Please speak with our wealth managers to learn more about overcoming retirement challenges.
Managing Wealth Distribution
Possessing great wealth can also be a great responsibility. You may have built up much of your wealth with the goal of keeping your family safe and comfortable. However, passing on this wealth to them can be more challenging than you realize.
Without setting up a proper estate plan, once the investor passes away, there is a risk that their wealth will be distributed through a lengthy and costly legal process, and your children and beneficiaries could receive an incorrect share of your wealth. This puts unnecessary hardship on your family and may even result in family members falling out.
How Common is a $10 Million Net Worth?
The number of millionaires in the US continues to increase. In fact, there are millions of them. You may be wondering what percentage of the population has a net worth of $10 million. It is estimated that 1.13% of Americans have $10 million or more in net worth; they are considered high net worth individuals.
Each of these wealthy individuals faces problems related to protecting and growing their wealth. To get help, they can seek advice from professional financial advisors or wealth managers.
Making the Most of Your $10 Million Lifestyle
So, what is the best way to live off $10 million? Each multi-millionaire follows their own spending philosophy. However, they may take steps to protect and grow their wealth.
For example, many multi-millionaires practice budgeting to manage their expenses effectively. This approach allows them to increase their savings over time while also allowing them to spend on luxuries within certain limits.
Others spend a large portion of their wealth by investing in various assets to achieve their portfolio goals. This approach tends to be riskier, so investors should follow tried and tested strategies before attempting this. Investors with $5 million in liquid investment assets can learn about better asset management practices by reading our book.
How Wealth Managers Contribute to Wealth Growth and Protection
As mentioned earlier, many investors turn to wealth managers to grow and protect their wealth. Wealth managers are financial professionals that go above and beyond the services that ordinary financial advisors provide. They can help with managing $10 million using a variety of different services. These include:
Wealth managers who offer portfolio analysis services tend to be well-versed in different investment strategies. They can study your portfolio carefully and determine if your current strategy is effective at helping you achieve your goals. They can also identify any risks in your portfolio and suggest strategies to keep your wealth safe. Investors with $5 million or more in investable assets can learn about some useful asset management strategies by reading our book.
Investors that have difficulty staying up-to-date with their investments can benefit from a wealth manager’s services. You can ask a wealth manager to manage part or all of your portfolio. They can then take care of duties such as monitoring portfolio performance and risks.
Wealth managers can take care of these duties while providing necessary updates whenever needed. This allows you to focus your efforts on other wealth protection and growth tasks. Learn about some of our specialized wealth management strategies in our book for investors with $10 million or more.
Retirement planning services offer solutions to the problems that plague investors in retirement. A wealth manager can help with retirement planning in different ways. For example, they can forecast your future expenses in retirement and help you set up a plan to save for these future expenses.
Similarly, a wealth manager can help you with investments that offer passive income during your retirement. This can help you grow your savings during retirement and sustain a comfortable lifestyle. Please speak with our wealth managers to learn more about retirement planning.
As mentioned earlier, estate planning is vital for any investor that wishes to ensure their children and beneficiaries receive the wealth they intended. A wealth manager can help with many estate planning tasks, including writing a will. A proper will describes how you would like your wealth to be distributed, and reduces uncertainties following your passing.
A wealth manager can also assist with setting up trusts. This ensures the right party receives their intended wealth at the right time in the future.
Tax planning can be one of the more overlooked services wealth managers provide. However, this service can help investors save significantly on their taxes. A wealth manager can study your finances and come up with strategies to reduce the amount of taxes you owe.
For example, a wealth manager may recommend that you change your state of residence to save on taxes. Other strategies could involve restructuring your portfolio and swapping out assets with different ones.
Are Wealth Managers Worth It?
Investors who are considering wealth management services for the first time may wonder if hiring these professionals is worthwhile. The cost of hiring a wealth manager generally pales in comparison to the benefits they offer. These include:
Receiving Advice from a Professional
While investors can study guides on financial planning and investing, nothing beats getting advice from a qualified professional that understands your financial circumstances. A wealth manager can offer strategies tailored specifically for you and your unique situation.
Every portfolio contains some risks due to the assets it contains. A wealth manager can identify these risks and find ways to mitigate them to keep your wealth safe into the future.
Seeking Advice Whenever Needed
One of the greatest benefits of having a wealth manager is being able to receive advice whenever needed. At Pillar Wealth Management, we charge our clients only a fixed annual fee based on their assets’ value. This means clients can use our services as often as needed without having to pay hourly charges.
Why Choose Pillar Wealth Management?
Many investors have chosen Pillar Wealth Management for their wealth management needs. They trust us because our professionals possess over six decades of experience. Our wealth managers are always ready to help their clients achieve their financial goals. They take the time to understand your portfolio and financial background before offering custom advice tailored specifically for you. Please get in touch with us and set up a free video meeting with our wealth managers to get started with better wealth management.
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