High Net Worth | Pillar Wealth Management
Have you ever wondered, “What is considered high net worth in 2021?”Anyone with at least $1 million in liquid assets is considered a high net worth individual. High net worth vs. ultra-high net worth is a distinction that is made based on the amount of liquid assets a person or entity has. Anyone with at least $30 million in assets is considered an ultra-high net worth individual.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
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.
If you’re either a high or ultra-high net worth individual, then you will need the professional support of a wealth manager to deal with your intricate tax situation, ownership interests, businesses, complex investment portfolios, and any other particular circumstances that are unlikely to be faced by an average investor.
If you need more in-depth knowledge on managing a high net worth between $5 million and $500 million, you can acquire a free copy of our book 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning.
Our experts at Pillar Wealth Management have compiled this resource to help you understand all that you need to know about wealth management services. This information will help you judge whether this type of service would be of value to you and how you can make the most out of it.
From taking care of your investment portfolio and mutual funds to managing bonds, stocks, and other assets, wealth management services cover it all. Our wealth managers have many years of experience managing the wealth and assets of affluent individuals who have $5 million to $500 million worth of liquid assets. If you’re ready to take the decision of having an expert on board, then visit our website to schedule a meeting with one of our wealth managers at no cost.
Table of Contents
What is High-Net-Worth Wealth Management?
Wealth management services are specialized services for high and ultra-high net worth individuals. At Pillar Wealth Management, our wealth managers will work with you closely to understand your priorities and aspirations in terms of wealth and assets. Then, they will create a customized strategy to help you achieve all your goals step by step.
High net worth individuals have millions of dollars in assets and investments that require professional management to ensure that they are secure and progressively expanding. That is where a professional wealth management firm comes in. Visit our website to schedule a free meeting with one of our best wealth managers at no cost.
When you hire a wealth manager for your high net worth, they will curate a tailored investment plan for your wealth. They not only work on managing your wealth, but they also provide strategies for growing and expanding it. Wealth managers manage your investments, taxes, business transactions, and more. Let’s understand this with the help of an example.
The wealth manager will evaluate your entire investment and asset portfolio and come up with a customized strategy that will help you achieve all your financial goals. A wealth manager is different from a financial advisor and other finance professionals in the sense that they work on your financial portfolio holistically. Their focus is to help you meet both your short- and long-term goals.
Now that you understand what wealth management is, let’s talk about why banks are not very effective at it. The reason is simple; banks don’t offer wealth management exclusively. Banks may offer private banking services that may extend to some wealth management services; they do not invest a client’s assets. A private bank may transfer your cash between accounts, cash checks, make payments and pay dues on your behalf, but they don’t take charge of your investment portfolio.
Therefore, trusting a bank with wealth management services isn’t always the best idea. To know more about wealth management, get your hands on a free copy of our book 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning.
What Makes a Good Wealth Manager?
Not all wealth managers are the same, and you need to be sure you pick the right one. Here are a few things to look for in a good wealth manager:
1. Assesses the Situation
The first step that a good manager takes is to get a deep understanding of your current financial and investment portfolio. They need to have a comprehensive understanding if they are to make informed decisions in the future. The assessment and evaluation of your current account will help them craft strategies that are in your best interest and take you closer to your goals.
The wealth manager will evaluate your assets both quantitatively and holistically. This will include studying your liabilities and investment portfolio, as well as your cash flow, to see where you stand in terms of your financial goals.
Your wealth manager will identify any gaps or loopholes in your existing strategies and portfolio that could stand in the way of you achieving your goals. They will work with you closely to understand your objectives, values, and priorities so they can devise strategies accordingly.
2. Sets Goals
After studying your risk tolerance and the current state of your portfolio, a good wealth manager will set short- and long-term goals. They will understand the level of risk and volatility that your current situation can withstand and will plan the next steps accordingly. These types of decisions require a fine understanding of market trends and risk assessment, and a wealth manager is the most qualified person to do that.
Based on your risk tolerance and time horizon, the wealth manager will establish benchmarks for tracking the strategy’s success. If you have a liquid investable portfolio valued at between $5 million and $500 million, you should request a free copy of our book, 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning, and find out more about risk tolerance and time horizons.
3. Makes Informed Decisions
Based on your risk tolerance and time horizon, a good wealth manager will design a customized asset allocation strategy. They will studynumerous investment options and asset classes to decide where to allocate your assets for the best returns and diversification while keeping in mind the desired goals.
The wealth manager will make sure that a percentage of your assets is assigned to specific categories, such as cash, bonds, stocks, and alternative investments. Your best asset allocation decisions depend on your existing situation and the goals that you set for yourself. Your asset allocation will vary based mainly on your tolerance level for risk and volatility. To get a deeper insight into how to protect your wealth and the importance of risk management, get a free hardcover copy of our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million.
4. Makes Smart Investment Choices
A good wealth manager will make investment choices based on the parameters of your asset allocation plan. The choice is made based on your preference for passive or active asset management. Active asset management involves studying market trends, political and economic data, and company-specific information. Assets are bought and sold based on these parameters.
You can learn more about the two approaches by requesting a free copy of our book, 7 Secrets to High Net Worth Investment Management, Estate, Tax, and Financial Planning.
5. Monitors the Results
Once your asset manager implements a portfolio strategy, they will monitor it and measure its performance relative to various benchmarks. They will report the portfolio performance to you periodically and even review the portfolio strategy yearly.
Top High Net Worth Tax Planning Strategies
Billionaires and other high net worth individuals need strategies that minimize their taxable income as well as the taxes imposed on them overall. If you want to get a comprehensive account of some complex tax planning techniques, you should ask for a free copy of7 Secrets To High Net Worth Investment Management, Estate, Tax, and Financial Planning, authored particularly for families and individuals who have $5 million to $500 million worth of liquid assets.
Here are a few strategies that are useful for billionaires that you need to look into:
1.Hiring an Experienced Tax Planner and Financial Advisor
Some challenges in life can severely impact your financial circumstances regarding your tax obligation. These can include such things as getting married, starting a family, unemployment, divorce, and buying a vacation home.
To deal with these situations, many high net worth individuals choose to hire an experienced tax planning advisor. These professionals help wealthy clients attain their financial targets by using techniques that are tailored to their individual circumstances. If you have $10 million or more in liquid assets, you should read our book,7 Secrets to High Net Worth Investment Management, Estate, Tax, and Financial Planning, to learn the importance of aligning your financial goals with your life situation.
2.Tax Loss Harvesting
Tax-loss harvesting is a technique whereby you sell some investments at a loss to offset profits made by selling other investments. The result is that you only have to pay taxes on your net profit.
You can use the income you generate by selling the losing investments to buy other assets that can potentially grow in the future and make up for your losses. Then, you can even out the future profits with future losses, hence building a profitable cycle of tax savings.
Unfortunately, using a tax-loss cultivation strategy isn’t as simple as it sounds. Trying to harvest tax losses yourself is a complicated and labor-intensive task. Historically, this task was carried out on Excel spreadsheets, but today, your tax advisor can perform a lot of these strenuous tasks using financial software.
Our wealth managers at Pillar Wealth Management recently helped a client save more than $30,000 in taxes by managing his profits and losses.Visit our website to schedule an initial meeting with one of our wealth managers free of cost.
What Are Some Strategies to Reduce Estate Taxes?
A lot of work goes into creating a plan that minimizes the estate taxes incurred by billionaires. Here are a few highlights of the strategies wealth managers recommend:
1.Moving to a state that imposes no estate tax
2.Using irrevocable life insurance trusts
3.Establishing estate-friendly trust funds
4.Using the benefits of life insurance to pay estate tax
5.Setting up donor-advised funds
6.Splitting family income
7.Investing in a startup or business
Benefits of Wealth Management Services for High Net Worth Individuals
Wealth managers carry out research and keep tabs on market trends with the help of micro and macro analytical tools to offer you the best financial advice. They will also take initiatives such as talking to corporate officials and performing other relevant tasks that help you accomplish your wealth goals. A part of a wealth manager’s job is to invest in various products such as commodities, mutual funds, real estate, equity, and fixed income to facilitate achieving those goals.
Wealth managers dedicate their time to enhancing their clients’ investment portfolios. They can advise you regarding the next best steps and decisions that you can take to secure and strengthen your financial position. Read our guide,Improving Portfolio Performance, to find out more about how you can maximize investment performance.
High net worth individuals have wealth in millions, and that requires additional management and services from professionals. With such a high net worth, you require expert tax advice and investment management services. High net worth individuals also need professional assistance with managing their trusts and estate along with their investment portfolio.
To put it simply, your wealth manager will design and implement financial plans to minimize your taxes, costs, fees, and risks, maximize investment performance, and effectively manage both your non-liquid and liquid assets.
High net worth individuals have at least $1 million in liquid assets. At Pillar Wealth Management, we offer the services of the most qualified and experienced wealth managers for such individuals. Contact our team to find out more about how we can help you with wealth and investment management.
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