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Wealth Management Fort Wayne – Financial Advisor Fort Wayne

Retirement can mean different things to different people. For a high net worth investor with over $10 million in liquid assets, retirement can mean winding down and reaping the benefits of your hard work, or it can be a chance to explore something new. Whatever the case, every high net worth investor needs strategic wealth management, Fort Wayne, to lead the life they desire. Besides helping you grow your wealth, having a wealth manager is also the key to successful retirement planning for high net worth investors. At Pillar Wealth Management, we have assisted numerous individuals in achieving their retirement goals. Check out our guide to choosing the right financial advisor for ultra-high net worth families and how this can help with wealth management for retirees.

7 Secrets minified

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.

Pillar Wealth Management holds over 60 years of combined experience in money management, and we are well-versed with the challenges that confront high net worth investors as they try to plan out their retirement years. We work exclusively with clients having $5 million to $500 million in liquid assets and understand how they have unique needs and retirement goals. That’s why we offer carefully curated strategies that prioritize their comfort and peace of mind. Click here to arrange a free consultation session to find out more about how we assist our clients.

In this blog, we will be reviewing the most common problems that occur during retirement planning for retirees having $5 million to $500 million in liquid assets. We will also discuss how Pillar Wealth Management overcomes these hurdles to form streamlined retirement plans that pertain to each client’s specific wealth management goals.

Table of Contents
1. Finding a True Fiduciary for Retirement Planning
2. Preparing for Unforeseen Circumstances
3. Owing Higher Taxes
4. Struggling to Balance Risk and Return on Investments
1. Start Early
2. Don’t Let Your Money Sit Around
3. Choose Financial Serenity Over Performance
4. Determine How You Want to Spend Your Retirement
5. Work With A Financial Advisor That Understands Your Goals

4 Challenges Faced by High Net Worth Retirees

As a high net worth individual preparing for retirement, you cannot afford complacency. Yes, you have accumulated a significant amount of wealth, but how can you make sure it lasts? According to a report by TIME, 70% of families having over $3 million in liquid assets tend to lose their wealth by the second generation. 90% of these families will lose their assets by the third generation.

When it comes to wealth management, a lot can go wrong, and there are many factors that can interfere with retirement planning for high net worth individuals. These include:

1. Finding a True Fiduciary for Retirement Planning

High net worth individuals with over $5 million in liquid assets need professional wealth management, Fort Wayne, for successful retirement planning. Unfortunately, this is easier said than done.

Many large banks and investment firms will appear to have your best interests at heart, but for the most part, they have their own goals to meet. The financial advisors that work at these companies are instructed to chase after quotas and earn new clients. If they fail to meet their targets, they get cut. According to RIABiz, the quota culture at these companies can be exhausting. So much so that most investment advisors are forced to quit because they can’t deal with the pressure that comes with the job.

We won’t get into the nitty-gritty of things but riddle us this: if you had to choose between committing 100% to one client over earning 10 new clients and getting to keep your job – what will you opt for?

As a high net worth individual, you need someone willing to give you their complete attention and help you meet your retirement goals. That’s where we come in. At Pillar Wealth Management, we offer fiduciary advisory services and only take on a specific number of clients. This allows us to create comprehensive retirement planning strategies that maximize the use of their assets, control their risk, and allow their wealth to last. We are in it for the long haul and can help you generate a stable source of income that helps you lead your post-retirement years in bliss.

To learn about how we help our high net worth clients grow their wealth, click here to read our guide on enhancing portfolio performance.

2. Preparing for Unforeseen Circumstances

Managing your wealth responsibly during periods of recession is another challenge that hinders retirement planning for high net worth investors. If the COVID-19 pandemic has taught us anything, it is that life is unpredictable.

Don’t lose heart just yet, though. Indeed you can’t predict what may happen and how it affects the value of your assets. However, opting for a robust risk management approach can help you minimize your losses to a large extent.

At Pillar Wealth Management, we carry out portfolio stress tests that help us track your portfolio performance during unfavorable market conditions. These stress tests are developed using over 1000 scenarios and rely on data dating asfar back as 1925. It accounts for a series of major global events such as World War II, the Great Recession (1929 – 1933), the Global Financial Crisis of 2008, and other events that caused economic downturns.

The reason we use such extensive historical data is simple. Our experience tells us that history has a tendency to repeat itself. The market tends to fall and recover in a pattern. Accounting for these patterns and balancing your portfolio accordingly can help retirees secure their wealth and protect their assets in a better way.

To learn more about our portfolio stress tests and how they can help you, click here to start a conversation with Pillar Wealth Management.

Wealth management Fort Wayne

3. Owing Higher Taxes

Your income tax bracket can vary from 10% to 37%, depending on the amount you earn, your marital status, and whether you’re filing separately. For high net worth individuals, the income tax rate is currently at 37%. Let’s take a quick look at the average annual income for people who fall in this tax bracket for 2020:

StatusAverage Annual Income
Single$510,301 and above
Head of Household$510,301 and above
Married and filing jointly or qualified widow$612,351 and above
Married but filing separately$306,176 and above

On the whole, these higher tax payments can interfere with retirement planning for high net worth investors. However, with the right tax minimization strategies in place, you can avoid losing so much money in taxes to reach your retirement goals. These include:

  • Controlling capital gains tax
  • Investing tax-managed funds or exchange-traded funds
  • Investing in treasury bonds, Series I bonds, and municipal bonds
  • Minimizing marginal tax rates

To elaborate a little on these tax minimization strategies, let’s discuss controlling capital gains tax. If you buy and sell a security within a year, these capital gains will be taxed at the ordinary income tax rate. However, if you sell them after one year, you will have to pay 20% in taxes. Over the years, this difference can help you save thousands of dollars in tax benefits.

To learn about other tax minimization strategies, schedule a conversation with Pillar Wealth Management.

4. Struggling to Balance Risk and Return on Investments

When it comes to wealth management for retirees, financial security often takes precedence over earning high returns. As most financial advisors will also tell you, it can be difficult to earn a lot on low-risk investments that are usually a part of retirement planning.

While this is true, the risk-return tradeoff isn’t necessarily as volatile as you might be led to believe. Call us ambitious, but the right investment strategies can still help you maximize the performance of your investment portfolio.

Are you confused? Let us elaborate a little on the methods we use to provide you with a healthy balance in your risk and returns.

For starters, we rely on an Efficient Frontier. This allows us to measure your risk and return and balance it to generate efficient returns that can be produced without crossing your risk threshold. It also ensures that you aren’t being overly conservative and taking too little risk to compromise your returns.

We also ensure a highly diversified asset allocation that lets you invest your money in a combination of bonds, equities, and cash. This is vital for maintaining a portfolio that can perform well despite changes in the market.

Unfortunately, too many high net worth investors are not aware of the role asset allocation plays in wealth management, Fort Wayne. As a result, they risk losing a significant portion of their wealth due to poorly diversified assets. To understand why asset allocation is criticalfor ultra-high net worth families with $25 million and above in liquid assets, we recommend ordering a free hard copy of our book today – The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.

5 Aspects of Effective Retirement Planning and Wealth Management, Fort Wayne

There are no age or time constraints to retirement planning for high net worth people. It is a continuous process, and the sooner you have a retirement plan in place, the easier it will be to organize your priorities and ensure your financial security.

Not only will this offer you the peace of mind you are looking for, but it will also secure the future of your family for years to come. At Pillar Wealth Management, we stress upon the following aspects for effective retirement planning:

1. Start Early

As a budding investor in your 20s, you can start planning for retirement by investing in mutual funds and opening an individual retirement account (IRA). If you are working somewhere and they offer a retirement saving plan like a 401(k), thenyou can also use this to build your savings.

2. Don’t Let Your Money Sit Around

If you are familiar with concepts such as time value of money, then you will know that the value of your savings will depreciate over time. Please consult a financial advisor on how you can invest this money in lucrative investment assets and grow its value.

3. Choose Financial Serenity Over Performance

When it comes to wealth management for retirees, we believe that financial serenity trumps everything else. You don’t have to aim for obscenely high returns if they compromise your financial security. In the end, if it is not making you happy andgetting you any closer to your retirement goals, then is it really worth it?

Changing your mindset in such cases can do wonders. That’s not all, of course. To learn more about other critical shifts that every high net worth investor needs to make, click here to read our guide.

4. Determine How You Want to Spend Your Retirement

You cannot have a retirement plan without knowing what you want to do with your money. Outline how you want to spend your post-retirement years, which hobbies and experiences you want to pursue, and the monthly or annual income you will need to maintain the lifestyle you desire. This will help develop a goal-oriented retirement plan and help you identify income sources, as well as your risk threshold, with respect to your investments.

5. Work With A Financial Advisor That Understands Your Goals

As we mentioned early on in the blog, working with a true fiduciary that prioritizes your goals is essential for retirement planning for retirees with a high net worth. This will enable you to develop a tailored retirement plan that takes your priorities into account, minimizes your risk, and grows your returns.

If you need assistance with finding the right financial advisor for managing your assets, click here to read our short guide on the subject.

Craft your Successful Retirement Plan with Pillar Wealth Management

Proper retirement planning for high net worthindividuals can sustain your family and other beneficiaries for several years and even generations. It also offers you the chance to enjoy your retirement with your loved onesin a stress-free manner.

Having an expert financial advisor Fort Wayne by your side is a must to streamline your retirement planning and wealth management, Fort Wayne.

At Pillar Wealth Management, we are dedicated to serving individuals and families with a net worth of $5 million to $500 million. Our team possesses an abundance of experience in crafting optimized retirement plans exclusively for ultra-high net worth investors and helping them make optimal use of their assets.

If you’re looking for trusted retirement experts, schedule a free consultation with Pillar Wealth Management.

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