High Net Worth Services
Now that you’ve reached the peaks of financial success, the next step for you as a High Net Worth (HNW) Individual is to find ways to continue growing yet preserve your wealth.
Creating a financial plan to attain your HNW status is just one part of the journey, it is equally as important that you create a plan to sustain your financial well being.
We Are Different Because We Are Laser Focused On Helping You Achieve Financial Serenity Through Our Proven Comprehensive Goals-Based Planning & Investing Strategies.
We’ve already discussed 8 essential components of a successful financial team; this article is an extension of the same idea. The principle is to help HNW and Ultra HNW (UHNW) individuals maintain their lifestyles and continue living in the comforts they always imagined for themselves.
Table of Contents
What is Wealth Management?
Wealth management is the exercise of managing your investments and expenses in ways that will help grow and maintain your income. It usually involves working with financial consultants to maintain profitable portfolios, balance your tax returns, and estate planning to achieve the highest possible financial status.
The employment of wealth management services is an essential component in creating a financial legacy that you and your loved ones can benefit from for as long as possible.
We’re certain that you began the pursuit of wealth to make sure that you can achieve the financial and personal freedom to live life on your own terms. You intended to make sure that you wouldn’t have to compromise your well-being because of factors outside of your control.
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Many people belonging to the highest income brackets fail to consider the implications of their decisions across a long span of time.
We’ve said it before and we’ll say it again, making money for money’s sake is pointless. If it cannot help you live the life you want, then there is no point in having it.
To this end, it is imperative that you begin to consider the benefits of working with wealth management experts to keep on living the best life you can imagine.
How does Wealth Management Work Exactly?
The principles that drive wealth management takes into account the special circumstances that HNW individuals face by virtue of their wealth.
You, with your liquid net worth of over $1 million, possess assets that are at risk from potentially all angles. Whether it’s in the form of investment risks, legal liabilities, or inefficient tax management, these are factors that ordinary individuals don’t have to consider.
To help financially successful individuals, wealth management services offer consultancy services across an entire spectrum of financial avenues.
These include any and all possible factors that might contribute to your financial well-being and the risks to it.
Through the advice of wealth management services, it is possible to safeguard yourself against financial adversity and manage your investments in ways that your wealth keeps growing continuously.
The services that constitute wealth management include tax managers, risk managers, investment managers, attorneys, mergers and acquisition specialists, and many more individuals that you can turn to for financial advice.
Since the finance industry overlaps with each of these services, it becomes important to understand and appreciate the interconnectivity for sustainable financial growth.
HNWIs need tax planning and estate planning because their financial situation can be complex. They may need help with charitable giving because they want to give back but aren’t sure how.
The majority of HNW individuals hire a financial manager to help them with investing, asset diversification, and tax and estate planning. They can expect and pay for highly personalized services.
A high-net-worth individual has investable assets worth at least $1 million. These are liquid assets such as cash and bank accounts and assets that can easily be converted to cash, such as stocks.
High-net-worth individuals put their money in stocks, bonds, Treasury bills, ETFs, mutual funds, private equity, real estate, and objects that are high in value, like gold and expensive artwork.
Wealth management requires a customized financial plan that covers asset diversification and risk management for preserving wealth, plus a mix of investments that will meet the needs of the investor.
HNW individuals are used to getting what they want by paying for it, so you need to have something to offer that they don’t yet have — you have already used your knowledge and expertise for success.
The UHNW lifestyle is similar to a middle-class lifestyle but with bigger and better everything—bigger homes, cars and vacations, as well as owning a boat or private plane and one or two second homes.
A very high net worth is at least $30 million in investible assets. These assets include cash, bank accounts, CDs, and any other assets that can be easily converted to cash, such as stocks.
High net worth clients want personalized financial services that allow them to preserve and grow their wealth, provide for the next generation, and give to charitable causes they care about.
Look out for events that signal new income, whose recipient may want financial advice, such as executive awards and promotions. Target individuals that work in an economic sector that you know well.
10 Wealth Management Services Ultra-High Net Worth Should Consider
- Tax Management
- Investment Management
- Risk Management Services
- Estate Planning Services
- Real Estate Advisory
- Professional Banking Services
- Professional Accounting Consultancy
- Retirement Planning
- Legal Advisory Services
- Financial Planning Services
According to our judgment, based on our risk assessment of HNW and UHNW individuals with a liquid net worth of $1 million to $400 million, ideally, 10 types of wealth management services are necessary to maintain your financial integrity.
1. Tax Management
Taxation structures are formed out of a complicated amalgamation of the financial sector with legislation. The precise nature of the tax system requires people to be well versed in tax laws and tax systems as they apply to their particular financial conditions.
The problem with HNW and UHNW individuals is that they are connected to multiple markets and financial avenues. Depending on the nature of their income streams, there is a different set of tax laws that applies to them.
Often the interactions between tax conditions overlap to create confusion in how tax applies to you.
Tax management involves using these structures to pay the lowest possible tax amounts from existing wealth/income streams.
A skilled tax advisor can help you manage your tax filings to make sure that you make all your possible tax payments and also pay the lowest tax amounts. There are tax advisors who specialize in managing HNW and UHNW tax affairs and help you achieve tax efficiency.
2. Investment Management
Optimal Asset allocation is an absolute must if you wish to maximize your returns. An investment management service looking out for your portfolio is a convenient way of arriving at the most efficient portfolio for your investments.
Experienced investment managers have the foresight and the technical skill that is required to run an investment plan all the way to completion.
These individuals can also provide objective insight into financial markets that can bring some certainty to the investment decisions you intend to make.
Having an investment management firm work with your portfolios, you don’t have to concern yourself with the day to day workings of financial markets nor do you have to constantly work to achieve efficient allocation yourself. Skilled investment managers can help HNW investors improve their financial prospects through the provision of precise and invaluable investment advice.
3. Risk Management Services
We’ve already mentioned how HNW investors are at a higher risk across a rather broad avenue.
Insurance and/or risk management services is a preemptive approach to safeguarding your financial interests. As an increasing number of wealthy individuals become targets of lawsuits and their rather expensive belongings get exposed to multiple risk factors, it becomes important that they find a valid risk assessment that they need coverage for.
Having an HNW specific risk management team working to assess your risk profile, you can look for coverage across all the risks you are currently facing but not aware of.
The exercise of discovering any implicit risks that you are facing, combined with the expertise of financial advisors can help manage your wealth in a way that you can sustain continued financial wellbeing.
4. Estate Planning Services
Considering the fact that you intended to create a financial legacy that your loved ones can enjoy for as long as possible, it is a good idea to plan out the future of your assets. Estate planning services/attorneys can help you understand the legal implications of your absences on your wealth and how it will be dealt with if you are not around.
Legal advisors are an integral part of any financial team, in that they can present legal advice that is pertinent to current financial concerns and any future concerns that may arise.
Developing a legally binding agreement that stipulates the terms under which your financial matters will be conducted in any unfortunate events that might befall is an act of prudence.
For many HNW and Corporate level executives, their life’s achievements as reflected in their financial status is often wasted due to squabbles or ineffective financial management. Creating a great financial plan involves accounting for all contingencies, one of which also involves planning your finances for when you are no longer there.
5. Real Estate Advisory
Real Estate management is a form of investment planning that is specific to investments in real estate.
Investing in real estate is one way to diversify your portfolio. A Financial Security Index Survey carried out by Bankrate suggests that 54million Americans prefer to put their money into a real estate venture as opposed to bonds or stocks.
Having a Real Estate Advisor can help you find investment opportunities to generate multiple income streams through real estate. Real estate isn’t something that you can handle or track like stocks.
The industry is fast-paced, and that means working with an experienced advisor. A knowledgeable and trustworthy real estate advisor can keep a lookout for the values of current real estate and identify room to generate more wealth from the market. Combining financial planning with real estate is one of the ways to maximize your returns.
6. Professional Banking Services
Banks can serve multiple purposes that assist in both generating interest-based income, investment management, and also a source for you to raise capital if ever needed.
As an HNW individual, it is possible that you wish to work towards continued financial growth. Banking services incorporate an amalgamation of financial advisory services that can assist with managing your wealth.
Having professional banking services also means that you get investment-related advice as this seeks to address your financial circumstance and recommend the best approach. Banking services help to protect and maintain a client’s assets.
You also get help on structure plans for passing any accumulated wealth to the indicated beneficiaries or family members.
7. Professional Accounting Consultancy
Accounting is a very basic requirement of keeping your financial plans on track. Whether it is for your organization or for your personal wealth, it is necessary to make sure that you know what your cash flows are.
Furthermore, accounting helps you track your income/expenditures, get quantitative financial information that you can use to make informed business decisions, and ensure statutory compliance.
Professional and experienced accountants are skilled in maintaining well-organized ledgers and books that are easy to comprehend and immensely useful when keeping track of your finances.
Remember that budgeting and future projection can affect your business. You’ll need to re-evaluate your financial records to keep your operations afloat.
A professional accountant will help identify any shortcomings in your financial activities, increase the accountability between the various services you have employed, and help correct your path if you ever diverge from your financial plans.
8. Retirement Planning
At a certain point in time, you will consider leaving the high-pressure job that generates the financial opportunities for you. You can’t work forever, which is why you need to start saving up for retirement early.
If you have already achieved your financial goals and are considering retiring, then you might want to consider hiring retirement planners to help sustain your wealth.
Retirement planners technically perform the same jobs as financial advisors do, however they specialize in creating comfortable retirement plans.
A retirement planner will help you understand your time horizon, determine your spending needs, calculate the after-tax return rate, assess your risk tolerance, and help you with estate planning if the need arises.
These individuals will consider your existing net worth and will create plans to either improve or stabilize your financial circumstances. They do this through the use of investment, financial and tax advisory services to help you continue living your lifestyle even after you’ve retired.
9. Legal Advisory Services
Legal advisors can be a valuable addition to your existing financial team. Skilled lawyers can act as safeguards against any untoward events that may compromise your financial well-being. Just as a risk manager can help protect your from lawsuits, targeted litigation, your legal team can help manage your legal affairs as they extend from your business and financial activities.
10. Financial Planning Services
Although each of the services we have identified above plays an important part in creating a sustainable financial plan and maintaining your wealth, a financial advisor in Tampa is the one who brings it all together.
These individuals are skilled across a wide range of financial advisory services to play a supervisory role to help protect your financial interests.
Apart from offering better financial understanding, a financial planner helps you manage your income through planning, increase cash flows by observing your spending patterns, manage your income, and provide a cushion in the form of desirable assets. The right financial planner also considers your risk tolerance, objectives, and personal circumstances before advising you on the type of investment to consider.
Having a Well Rounded Financial Team Helps
If you have already employed any of the above services, hiring a wealth manager you can trust will set your mind at ease as they usher you towards financial freedom.
Maintaining your wealth can be quite a challenge when you reach HNW status.
The sheer amount of investments, legal implications, and tax considerations can take a toll on anyone individual alone. This curtails your ability to not only achieve financial freedom but also to enjoy the freedom. If you are a C-level executive or a successful business owner, you want to consider any of these services to help boost your financial prospects indefinitely.
Hutch Ashoo and Chris Snyder are co-founders of Pillar Wealth Management. We are a fee-only expert wealth management firm for High Net Worth and Ultra High Net Worth Individuals. With years of experience in financial planning and investment management, we can help guide you toward continued financial security.
We have 30+ years of experience and are published, authors. Our bestsellers include a hardcover book titled, “Protecting Ultra High Net Worth Portfolio Estates”
We take a very active role in helping High Net Worth clients maintain and enjoy their wealth.
Call us today for a complimentary conversation with our expert advisors.
As a financial advisor, knowing how to acquire and retain HNW and UHNW clients is critical because this skill will help determine your income. Start by understanding HNW and UHNW individuals, such as what drives and motivates them.
What do HNW and UHNW Individuals Want?
Individuals with at least $1 million in investable assets want to make profitable investments to grow their wealth. They want to get richer, but they also want some security for the future, including an income stream that will meet their lifestyle goals.
To meet the needs of these potential customers, be sure that you are able to provide the services they may need. In addition, you need to understand that everyone has an emotional relationship with money and finance. Investing can be stressful because any investment involves some risk, and investing bigger sums of money involves bigger risks.
Because there are emotions involved in taking a risk, HNW and UHNW individuals will be guided by their emotions when making decisions about their finances.
Therefore, the smart advisor understands the importance of providing the services that HNW and UHNW need and, equally important, managing the emotional aspect of providing these services.
The Importance of Building Relationships
HNW and UHNW clients come to you for advice so they can reach their financial goals. You can assure them that you have the skills and experience to meet these goals by managing their assets profitably.
Over time, your HNW and UHNW clients will recognize that you are capable of helping them preserve and grow their wealth. Because they are emotionally involved, they need to have their emotional needs met as well. Then, they can feel comfortable continuing to work with you for many years into the future.
As you build your relationships with your HNW and UHNW clients, you will naturally be enthusiastic about getting to know them and their families. You’ll want to know something about their children (if they have children). You’ll want to know about their interests and hobbies and whether they enjoy traveling, and so on. Your relationships with your HNW and UHNW clients shouldn’t be about only money and making more money. Your clients have emotional needs too, and they want to feel good about their relationship with their financial advisor.
By asking questions, you’ll discover what matters to your HNW and UHNW clients. You’ll become aware of their values and concerns. They’ll share information about their lives, which can help you in your approach to meeting their financial goals.
Remember that appearances matter. Keep your appearance neat and professional, and keep your workspace that way too.
How to Attract UHNW Clients
HNW and UHNW individuals who are looking for a financial manager want to find a professional who is highly knowledgeable and experienced. They will use the internet to research their options. If they’re looking at you as a possible advisor, they’ll want to see a professional website loaded with information that they can use in making financial decisions. Leverage your knowledge to attract new HNW and UHNW clients.
Have a marketing plan that reflects the depth of your knowledge, both general and up-to-the-minute product information.
Examine your biases toward HNW and UHNW individuals, such as feeling that these very wealthy people are somehow better than you, which is a form of social self-consciousness.
First, remember that these wealthy folks need your help and that you can provide the services they need.
Second, HNW and UHNW individuals are also ordinary humans. They have desires and fears similar to yours, and you probably share some of the same beliefs and values, just because that’s what humans do!
Third, where money is concerned, everyone has insecurities about their ability to reach financial serenity, and that includes HNW and UHNW individuals.
So, HNW and UHNW individuals will respect you in your capacity as a financial advisor and are not likely to feel in any way your social superior.
Understand Their Needs
The needs of HNW and UHNW individuals can be different from those of the less wealthy. Their financial situations are more complex, and they may need more extensive wealth management services, such as tax management and estate planning. Wealthy investors are more likely to need advice on charitable giving, such as establishing a charitable trust.
Clients with whom you have a successful working relationship are very likely to recommend your services to others in their network who can be potential new clients. So, if you already have a few HNW and UHNW clients, each one of them can be a source of referrals, particularly other HNW and UHNW individuals in their circle of friends and colleagues.
It's OK to ask for referrals, but the timing has to be right. Be sure you know how the client feels about what you’ve achieved together and that the feeling is good before asking for a referral.
When the time feels right, be specific when you ask for a referral. Mention an area where you’re having success, and your client can refer you to someone with a similar need.
You can also get referrals by giving referrals, which reflects your trust in your clients.
Birds of a Feather …
Consider these statistics: 94% of UHNW investors are college graduates, and 87% are male. Most are over 50 years old. Use your search tools to filter your target market by education, gender, etc. Education is an important area of philanthropy for wealthy investors, so being involved in your alumni organization can lead to new clients for your business. Find more statistics online.
When making purchasing decisions, I want the best. If I can afford the best, I’ll buy the best because I know the product will bring lasting value.
The same is true of financial services. HNW and UHNW individuals want the best financial services, and they’re willing and able to pay for the best. So, if you want to sell yourself as the best, make sure that you have a good value proposition to make, such as how your tailored solutions solve real problems.
Show you can be the best and price your services accordingly.
You have a lot of information to share on your blog and in your email marketing. The economy will always have its highs and lows, but that’s not a reason for being a pessimist. Focus on the highs and on the potential derived from purchasing financial services from you. Sell yourself as a success story.
Someone once said it takes 10,000 hours of work to be an expert. That could be 10 years of effort. In your business, like in any business, great success takes time, but you won’t get there without hard work.
Make a commitment to yourself to do your best work every day, something you can never regret.