High Networth Individuals and Ultra-High Net Worth Families – Who Are They?

Do you have $5 million to $500 million in liquid assets? Then that means you fall under the category of the high and ultra-high-net-worth individuals. But, what does this really mean? What it really means is that your financial position is entirely different from the average American and brings with it unique financial challenges that only experienced financial advisors can tackle. Your goals will include short-term as well as long-term targets that you need to accomplish in the most efficient manner. You will have to start employing strategies to protect your wealth, be it from market volatility or excessive tax bills. And all this starts with identifying your position and then finding the appropriate financial advisor to assist high networth individuals. We suggest reading our guide on the right financial advisor for investors with $10 million or more in liquid assets.

STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION

 

7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning

 

The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.

Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.

When it comes to high-net-worth individuals, they need an experienced and highly skilled partner, such as Pillar Wealth Management. We are an independent firm offering extensive services to affluent clients with $5 million to $500 million in liquid assets. Our services include investment management, retirement planning, financial planning, tax planning, insurance planning, and much more. Our financial advisors and managers have been with us for more than three decades, equipping them with extensive knowledge and experience to assist our clients in attaining financial success. Plan a no-obligation consultation with Pillar Wealth Management today.

In this blog, we’ll be covering what defines a high-net-worth individual, an ultra-high-net-worth individual, the difference between the two and what it really means to be high networth individuals. Let’s get started.

What Defines a High Net Worth Individual?

A high networth individual or even a high-net-worth family is one who has at least $1 million or more in liquid assets. Such people have vast amounts of wealth, which could be in the form of various businesses, real estate, investments or even simply in liquid assets.

While they enjoy this high-net-worth, they also have to face much more complex financial decisions. They stand to lose much more as well. As a result, they need to partner with highly skilled and experienced financial advisors such as those at Pillar Wealth Management.Click here to connect with us today.

High Networth Individuals

How Much is Ultra-High Net Worth Individual?

Ultra-high-net-worth individuals and families are even wealthier than the high-net-worth. People who have at least $30 million or more in liquid assets are usually defined as ultra-high-net-worth individuals.

Since their wealth is even more substantial, such individuals and families face much more difficulties in managing their wealth. It is even more crucial for them to work with the right financial advisors or wealth management firms to ensure that they are able to meet all their short and long-term financial goals.

What is the Difference Between High Net Worth and Ultra-High Net Worth?

The apparent and simple reason is that ultra-high-net-worth individuals have about $20 million more worth of assets. However, in reality, the difference is that ultra-high-net-worth individuals require much more complex services to cater to their extensive wealth and challenging financial problems.

Moreover, as their net worth grows, it only grows harder to sustain and protect that wealth while also working towards their other goals. As a result, these affluent individuals need dedicated advisors who can carefully manage their wealth according to their goals while also employing all precautionary measures.

What Do High Networth Individuals Do?

It might seem like high networth individuals have no reason to worry and sail through life easily, but, in reality, it can be quite the opposite. They have to worry even more about protecting their wealth and growing their assets in a sustainable manner.

They have to think about their own future as well as that of their family and loved ones. That’s why it is so important for them to partner with an experienced financial advisor or wealth management firm like Pillar Wealth Management. Here’s what they can help high networth individuals do.

Investment Management

Investment and portfolio management is a major aspect of any high-net-worth individual’s wealth management strategy. Depending on their other goals, affluent individuals work with financial advisors to develop a strong portfolio that helps them grow their assets while protecting them from unpredictable market forces.

They use asset allocation as well as portfolio diversification to deal with investment risks. They also have to strike the ideal balance between returns and costs by employing an optimal share of active and passive money management. Read our guide on portfolio growth strategies to learn more about active and passive money management.

Retirement Planning

High networth individuals tend to have the most complex retirement plans. They might want to save up a certain amount, leave a certain amount for their heirs, travel the world, remain healthy to spend time with their family, invest in a friend’s business, etc.

While it sounds simple, it can be incredibly hard to convert these into actionable goals and steps that you can take from today. That’s why financial advisors develop comprehensive retirement plans that outline wealthy client’s retirement strategies for each stage of their life.

Tax Management

Since high-net-worth individuals are heavily involved in investments and other financial activities, they incur extensive tax bills as well on each financial activity. If not managed correctly, they could end up losing tens and hundreds of millions of dollars.

That’s why they need a tax advisor as well who could monitor their financial activities, manage the tax consequences, stay updated on tax laws, and employ strategies to reduce their tax bill.

At Pillar Wealth Management, our fiduciary financial advisors have been helping wealthy clients with tax planning and other cost management services for a combined experience of more than six decades now. Set up a free meeting with us today to discuss your tax planning and other needs.

Legacy Planning

Similar to complex retirement plans, high and ultra-high-net-worth individuals have complex legacy plans as well. These go beyond simple estate plans or wills. Besides how they wish to transfer their wealth to their heirs, legacy plans also include any philanthropic plans an affluent client may want to carry out, any trusts they want to establish, any businesses they want to set up or invest in, etc.

They leave behind more than just their wealth, and financial advisors and wealth management firms help ensure that it happens smoothly.

Risk Management

The more wealth and assets you own, the harder it is to retain it. A sudden chronic illness could have you paying exorbitant medical bills. A shift in the market or economy could have your investments crashing down. A divorce in the family could force you into expensive legal disputes.

As a result, financial advisors set up several measures to protect you from losing your wealth due to unforeseen circumstances. This can include insurance planning, asset allocation, diversification, and various other strategies. Read our book, The Art of Protecting Ultra-High-Net-Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million, to discover other ways to protect your wealth.

Why High Networth Individuals Need an Expert Financial Advisor

Some high networth individuals can choose to perform all these services themselves as they believe they know their goals and wealth best. However, to execute all these services effectively and efficiently, you will not only need deep knowledge about various aspects of wealth management but will also require extensive experience.

That’s why such individuals need special financial advisors that are familiar with the needs and challenges faced by the high-net-worth. Learn how to find such financial advisors from our fantastic guide on choosing the right financial advisor.

For instance, at an experienced wealth management firm like Pillar Wealth Management, financial advisors can help you with the following.

Financial Planning

A comprehensive financial plan works as a roadmap and provides direction to your overall wealth management strategy. It takes into account your specific goals and ambitions and then combines them with your resources and the prevailing market conditions to come up with the most appropriate steps. This can be impossible to do on your own, and that’s why you need the best financial advisors.

Holistic Wealth Management

When handling your wealth on your own or even working with investment houses, brokers, etc., you will often face the problem of accomplishing certain goals but falling behind on meeting other targets.

You might be reaping high returns from your investments but also be losing millions to taxes and fearing for your assets. Financial advisors at wealth management firms take a more holistic approach to wealth management, where they focus on growing your wealth in a sustainable manner while also controlling costs and protecting your assets.

Tailored Financial Plans

Tailored financial plans are one of the most crucial things for high networth individuals. Cookie-cutter experiences and fixed packages don’t work for them. Rather, what they need are highly customized financial plans that are specifically catered to their unique needs and desires. Only such plans have any chance of helping them achieve financial success and security. You can learn more about the importance of tailored financial plans from our comprehensive guide on portfolio performance.

Fiduciary Services

Most financial advisors and wealth managers offer fiduciary financial services. This is quite important because when you have $5 million to $500 million in liquid assets, it can be hard to trust anyone’s advice regarding your financial decisions. However, when you have fiduciary advisors, you know that they will always prioritize your interests above their own. They will act in good faith and be 100% transparent.

Constant Monitoring and Adjustments

When it comes to financial planning, it is not a one-time thing. Financial plans have to be constantly monitored to judge your progress and determine whether you are on the right path or not. Moreover, you also have to constantly adjust your plans according to changes in the market or in your life. Otherwise, the financial plan or any other plan becomes ineffective.

Final Thoughts

High networth individuals need to be categorized differently because their needs and problems are so different from the rest. They can’t work with just any advisor or private bank. Instead, they need a dedicated financial advisor who has tons of experience working with such wealthy individuals. Finding such advisors is easier said than done, though. That’s why we have developed this extensive guide on finding the right financial advisor for individuals worth $10 million or more.

One place you can find some of the best financial advisors for high networth individuals is Pillar Wealth Management. We are a 100% fee-only wealth management firm. Our fiduciary financial advisors have decades of experience which allows them to effectively cater to our clients’ needs. Our wealth managers and advisors spend a lot of time with every client to understand their needs and develop personalized solutions accordingly so that our clients can attain financial serenity. Plan a free meeting with Pillar Wealth Management today.

Authors

To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.

We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.

You see, our goal is to only accept 17 new clients this year. Clients who have from $5 million to $500 million in liquid investable assets to entrust us with on a 100% fee basis. No commissions and no products for sale.

More from authors.

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