Wealth Management For High Net Worth Investors
There are numerous advantages to hiring a high net worth financial planning service, especially if you have at least $5 million in liquid investable assets. For example, a financial planner has detailed information and expertise in managing high net worth people and families’ finances. They know the different financial markets’ intricacies and closely monitor the ever-changing market trends to swiftly take advantage of any profitable opportunity.Don’t forget to read our insightful guide and learn how to select the best high net worth financial planning firm for yourself.
Our team of experts at Pillar Wealth Managementworks with clients that own liquid assets between $5 million and $500 million. To learn more about how we can manage your finances, schedule a free consultation with one of our team members.
Table of Contents
Types of Financial Planning for High Net Worth
Financial planning is a broad term that involves planning on spending, investing, and using your wealth to attain economic stability and accomplish your long and short-term financial goals. There are several types of financial planning for high net worth individual, such as the following:
– Cash Flow Planning
– Wealth Transfer
At Pillar Wealth Management, we provide the different types of financial planning, including the ones listed above, to high net worth individuals. Moreover, we also offer comprehensive wealth management and investment advisory services to affluent clients. To know more about our services, set up a free meeting with one of our team members.
Cash Flow Planning
It’s impossible to carry out financial planning without knowing where you’re spending your wealth. Documenting your cash flows will allow you to determine how much money you need every month for your expenses, how much you can invest, and how much you need for retirement.
Successful cash flow planning also helps to ensure that you stay on track to achieve your financial objectives, such as paying back your mortgage, buying a luxury estate, and spending a comfortable post-retirement life.
At Pillar Wealth Management, our financial planning services include cash flow management. We review your credit card, checking account, and other statements to get a complete idea of how you spend your money. Plus, we will also analyze your assets and liabilities to identify areas for improving cash flow. Using our services, you can make intelligent decisions regarding your wealth, foresee any potential cash problem, and resolve it before it even happens.
Wealth transfer is the process of handing over a specific percentage of your wealth and assets to your children, charity organizations, or other beneficiaries. Even though this process sounds simple on paper, it’s actually quite complex.
Many high net worth people underestimate the importance of wealth transfer and try to implement it themselves. However, in doing so, they end up facing a lot of problems and even lose a lot of their money in taxes. In our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million to $500 Million, we discuss the multiple challenges associated with wealth transfer.
Our financial planners combine various financial planning tools such as wills, trust, estate planning, along with life insurance, to help streamline this process for you. We also create holistictransference strategies to ensure that your wealth reaches the chosen people in a tax-efficient manner.
Spending a worry-free, comfortable, and enjoyable retirement is every high net worth investor’s goal. But only those who start planning for it in advance can achieve it!
Many people know the importance of retirement planning, but they don’t know how to go about it. Thus, even though retirement planning is the most critical type of financial planning, it’s also the most mismanaged one.
At Pillar Wealth Management, we have mastered the art of developing retirement plans for our high net worth clients who own a minimum of $5 million in liquid assets. Our team has also authored a guide, 5 Critical Shifts for Maximizing Portfolio Growth Strategies, where we discuss the things you need to do to spend a peaceful and calm retirement.
Investment management for high net worth individuals involves managing the investment portfolios. Many people hold the view that investment management is just about purchasing and selling investments.
While this perception isn’t wrong, it doesn’t provide a comprehensive definition of investment management. For example, investment management may include tax planning, budgeting, banking, along with preparing a complete investment strategy to acquire and dispose investments.
At Pillar Wealth Management, our team has extensive insights into the workings of the numerous financial markets. We use this information to comprehensively analyze our clients’ investments and develop plans to generate the highest returns. You can also read our guide, Improving Portfolio Performance, and get more details on how you can manage your investments to effectively balance your risks with returns.
Why High Net Worth Investors Should Seek Financial Planning
There are several reasons as to why high net worth investors should seek financial planning. Some of the reasons are highlighted below.
Lack of Knowledge
Financial planning is a task that not everyone can take up on their own as it requires skills, knowledge, and experience. Many high net worth individuals are extremely busy people who’re on their toes from the moment their alarm goes off in the morning till they hit their pillow at night. With little time to spare, high net worth individuals obviously cannot put in the hours of research it takes to choose the best investment opportunities or learn how to create a perfect balance between returns and risks.
Thus, it is imperative that high net worth individuals pick professionals who have the requisite knowledge needed to manage such a large amount of wealth. On the other hand, financial planning companies have access to insightful data collected over a period of several years. For instance, at Pillar Wealth Management, our financial planners have access to past financial data from 1925, which we use to create financial plans for you.
Personalized Financial Plans
Many financial institutions, including investment houses and private banks, offer plain cookie-cutter solutions to every high net worth investor. They fail to acknowledge that every affluent individual is different and needs a different financial plan. Because of this very reason, high net investors need to hire a financial planning firm that can create financial plans that are in line with their goals and aspirations.
Financial planners typically have detailed discussions with high net worth investors to comprehensively understand their needs and create personalized strategies aligned with their unique financial situation. Unlike the big Wall Street firms, who are more focused on satisfying their shareholders, our financial planners are more concerned about building our high net worth investors’ legacy. This year, we took merely 17 new clients so that we could create and offer personalized plans to each client. Click here to speak to our financial planners and start your personalized financial planning now!
When Do I Need High Net Worth Financial Planning?
Another popular question regarding financial planning is, “when do I need high net worth financial planning?” So, here are some situations when you need high net worth financial planning.
Your Tax Bills are Mounting
Perhaps, the only downsides of making an investment gain are the tax bills that accompany it. Since investments and gains are an ongoing process, a comprehensive, well-thought tax strategy can save you a lot of money.
Tax planning plays a vital part in safeguarding and growing your wealth. Our experienced financial planners will study your assets, liabilities, and overall financial situation to create a tax management plan for you that will allow you to accomplish your financial goals. For example, we can guide you about governments’ various tax incentives on specific investments to reduce your tax obligation.
You Want to Lower Your Portfolio’s Risk
Many high net worth individuals choose to invest their wealth in different financial markets such as forex markets, stock markets, bonds and commodities markets, etc. If you also use this tactic to build your wealth, you need to be aware of its risks. The biggest one being that market movements can change within seconds and make you lose all your long-term profits.
Hence, if you feel that your investments are incredibly risky and want to lower it, you should use financial planning firms’ risk management services. At Pillar Wealth Management, our financial planning services include strategies that will help you minimize the risks of unexpected market dips. Additionally, we will do an in-depth analysis of your investment portfolio and let you know which investments face the most risk and what you can do to minimize it.
You Want to Secure Your Future
If you don’t have a comprehensive financial plan, whether it’s a wealth transfer plan, retirement plan, or investment plan, your beneficiaries won’t be able to properly inherit their wealth, live a stress-free post-retirement life, or invest your wealth in the right places. But all these plans will be futile if your future isn’t secured with a proper insurance plan. So, if you want to secure your future, you should invest in comprehensive insurance planning.
Keep in mind that disasters can strike anyone without any preliminary warning and the best way to deal with them is to be prepared for them. In fact, the current COVID-19 pandemic just showed how unpredictable life is.
Proper insurance planning will allow you to eliminate any unforeseeable risks such as permanent disability, incapacitation, or even sudden death. At Pillar Wealth Management, our financial planners are experts at identifying which insurance plans are most appropriate for you. Therefore, we provide insurance planning services as part of our holistic financial planning services to ensure that you aren’t spending your wealth on an insurance policy that doesn’t offer sufficient coverage.
How to Choose the Best High Net Worth Financial Planning Service
If, by now, you have decided to opt for a financial planning firm, you might be thinking, how to choose the best high net worth financial planning service?
Well then, there’s no need to worry because we have prepared a list of steps you can follow to identify and choose the best financial planning firm or financial planner for yourself. We highly recommend you read The Ultimate Guide to Choosing the Best Financial Advisor, authored by our team, and learn how you can choose the best financial planner to help you achieve your financial targets.
Step #1 – Note Down a Few Names
If you’re searching for a financial planning service, you can do a quick Google search to get a few financial planners’ names. However, the best way to proceed is to ask for referrals from your colleagues, family members, friends, and other high net worth individuals in your circle.
Step #2 – Vet Their Background, Skills, and Experience
Before officially hiring a financial planning firm, you need to carry out comprehensive research. The things you should mainly focus on include
– Experience and performance record
– Services offered
You can do this research by going through databases such as the Financial Planning Standards Board (FPSB), CFP, etc. Another way to go about this is to look up the financial planner you have shortlisted on LinkedIn and review their educational qualifications, work experience, and any recommendations they’ve received.
Step #3 – Schedule a Preliminary Call or Meeting
After you have done your homework and evaluated a financial planner’s credibility, you should schedule an introductory meeting with them, either in-person or on call. This will allow you to gauge their personality and see if you can trust them with your finances.
In your preliminary meeting with a financial planner, you should ask them multiple questions related to financial planning and see if they can give satisfactory responses. Here are some questions that you can ask:
– Do you use a passive or active approach to financial planning?
– Have you previously worked with high net worth individuals?
– How frequently will we meet, and what will be our mode of communication?
Last Few Words
Choosing the best financial planning firm or financial planner will allow you to efficiently manage your finances. At Pillar Wealth Management, our financial planners will speak to you to understand your financial goals and create to help you turn your goals into reality. So, what are you waiting for? Visit our website and speak to our financial planners NOW.
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