High Net Worth Individual and Wealth Management – PillarWM

Any high net worth individual is aware of the hard work that it takes to accumulate wealth and sustain it. They also understand the importance of trusting the right professionals to deal with their money. Fortunately, wealth managers are financial advisors who work exclusively with wealthy investors; therefore, they know how to allocate high-value assets and optimize portfolios for maximum returns. Ultra-high net worth investors have even more wealth and assets to manage. If you want assistance in finding the best ultra-high net worth financial advisor for you, you can read our Ultimate Guide.

Our wealth management services cover an array of financial aspects, including wealth transfer, risk management, balance sheet optimization, tax loss harvesting, insurance planning, estate planning, tax planning, liquidity management, cash flow planning, retirement income planning, and more. We cater to rich families with a net worth of 5 million to 500 million in liquid investable assets. This makes us qualified to understand and meet the unique needs of high net worth and ultra-high net worth individuals. Contact Pillar Wealth Management today to book your free consultation.

What is Meant by a High Net Worth Individual?

The financial services industry uses the term high net worth individual for a person or family that has liquid assets above a certain amount. So, what is a high net worth individual worth?

The exact amount of money you need to have in order to classify as a high net worth individual can differ with the financial institution or region. It typically consists of people with 6, 7, or more figures of liquid net worth.

Many banks or financial institutions have specific services and perks for high net worth individuals. They have separately managed investment accounts, and a high net worth individual must have a specific amount of liquid assets in their possession to qualify for this elite treatment.

Our wealth managers are experts at handling the wealth and portfolios of high net worth families. They can assist you with an array of financial management. If you would like to book a free consultation with one of them, contact us today!

High Net Worth, Very High Net Worth, and Ultra High Net Worth

If you’ve heard of high net worth individuals, you have likely come across the terms very high net worth individual and ultra high net worth individual. These differ in the amount of liquid net worth they have. If you’re confused about which category you fit into, this article can help you.

Let’s begin with who is considered a high net worth individual. In most cases, a high net worth individual has a liquid net worth of $750,000 to $1.5 million. This can vary with the financial institution you work with, but generally, having a million dollars in liquid assets qualifies you for the high net worth special treatment.

The richest clients can avail services such as 24-hour concierge services, unlimited credit card spending, customized financial plans, luxury hotel upgrades, and more. Some private banks reserve services such as estate planning and retirement income management for these clients as well.

Very high net worth individuals are on the higher end of the net worth scale, with at least 5 million dollars in liquid assets. Private wealth managers seek out these investors by offering them personalized services in estate planning, investment management, and more.

Coming to our last category, ultra high net worth individuals have a liquid net worth of over 30 million dollars. While these investors constitute a minuscule percentage, i.e., 0.003%, of the world’s population, they hold 13% of the world’s wealth.

Billionaires are a special category that comes under ultra high net worth individuals. They have a net worth of over a billion dollars. This includes notable people such as Elon Musk, Jeff Bezos, Bill Gates, and Mark Zuckerberg.

As of 2020, the country with the highest number of high net worth individuals was the United States. This was followed by Japan, Germany, and China. Most of these individuals gain their wealth through finance, banking, investments, or inheritance. As they continue to invest and grow their fortune, their financial status changes.

High net worth individuals are more common, and that is why wealth management firms approach them more frequently. No matter their net worth, rich investors are continuously looking for ways to increase their wealth. Many achieve this by optimizing their portfolio. You can read about the strategies that our wealth managers use in our five critical shifts guide.

high net worth individual

Why Wealth Management Can Be Useful for High Net Worth Individuals

With a large amount of money comes many factors, liabilities, threats, and financial aspects that you need to consider. As a high net worth individual, you most likely do not have the time to look into the details of your financial management. Even if you do, it won’t guarantee the same results that you would get from consulting a professional.

The most common goals of rich investors are to increase their wealth and secure their financial future to sustain them through retirement. Our Performance Guide can tell you how you can achieve this by using tried and tested strategies in your investment portfolio. It can also help people who want to enter the high net worth category optimize their portfolio to improve their financial status.

Wealth management is a service that is exclusive to high net worth and ultra high net worth investors since wealth managers understand the needs and goals of the rich. They have the knowledge and the expertise to use different methods to help you accumulate more money and protect your assets. Here is how they can help you with your finances.

Investment and Portfolio Management

Investing is a crucial part of a high net worth individual’s life. The right investments can maximize your profits and minimize the money you lose. A wealth manager can guide you on the best investment opportunities as they know the market well enough to predict future price movements. A good wealth manager will allocate your assets in a diverse set of classes, including equities, bonds, cash, real estate, stocks, and mutual funds.

Identify and Manage Your Risk

With any investment comes risk. Wealth managers understand this and can foresee the market downturns and advise you accordingly. Moreover, they can identify unnecessary costs and help rectify or minimize them to help you save as much of your money as possible. Depending on your financial goals, they can recommend high-risk investments which promise high rewards, or they can advise low-risk investments with lower but long-term profits.

Manage Your Taxes

Wealthy people come under a higher tax bracket, which can cost you a significant amount of money each year. Wealth managers work with you to bring down your taxes legally. They invest in assets and allocate them in a way to mitigate the amount of taxes you owe. Some of these strategies might include investing in philanthropic ventures.

Securing Your Assets

It is worth mentioning again that the more wealth you have, the more risk you face. Liabilities such as lawsuits, divorce, debts, and unforeseen circumstances can result in you having to use your savings. Wealth managers can help you prepare for these threats by securing your assets. Our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million, discusses more on this topic.

Legacy and Estate Planning

Wealth transfer or legacy planning is a critical part of any wealthy family’s financial decisions. Family disputes can cause unnecessary conflicts and result in a lot of your money being squandered in legal battles over the inheritance. A wealth manager can help you with legacy and estate planning, giving expert, unbiased advice. They can even make sure that your wishes are carried out after you are gone.

Securing Your Retirement

Everyone wants to retire comfortably, but wealthy people want to be able to maintain their living standards. Just because you have a retirement savings account does not necessarily mean that you are prepared. Many factors can affect how quickly your wealth runs out, such as medical expenses, inflation, or life circumstances. Your wealth manager can anticipate these scenarios and help you collect enough wealth in the present to allow you to maintain your financial standing even after you retire.

Finding the right financial advisor is essential to protect your fortune, particularly if you have a liquid net worth of more than 10 million dollars. How certain are you that your financial advisor is right for you? Our guide can help you in finding and identifying a good financial advisor.

Can You Increase Your Net Worth?

High net worth individual investors use strategies and methods to increase their net worth. Improving your financial status requires a few habits that anyone can adopt. The first step is to have a financial plan. In most cases, it is advisable to have a customized plan created by a professional. Our wealth managers provide custom solutions and financial planning services for investors with a net worth of millions of dollars. Get in touch with them today to book your first meeting.

Reviewing your liabilities, debts, and risks can help you address them early on so that they don’t build up. Along with reducing expenses, this can move you towards increasing your net worth. Once you secure the wealth that you already have, you can move towards accumulating more. This means increasing your assets and finding new sources of income. You can consult an investment manager to help you with the best investment opportunities. Finding the right financial advisor can take some time. Our Ultimate Guide can make the process easier for you. It contains questions you can ask your financial advisor to determine whether they are the right fit for you.

Why A High Net Worth Individual Should Work with Pillar Wealth Management

As an affluent investor, you undoubtedly have various financial institutions to choose from for your financial management. However, with a net worth of millions of dollars, you are safer in the hands of a wealth management firm.

A custom wealth management plan is crucial for a high net worth individual or an ultra-high net worth individual. Pillar Wealth Management offers you that, among other fiduciary, fee-only services. We have worked with high net worth individual investors who have 5 million to 500 million worth of liquid investable assets for decades. We not only create a customized plan for you but also modify it according to changing circumstances.

Our wealth managers coordinate with outside advisors to manage your wealth, which includes financial planning, investing, and implementing alternative strategies to enhance your wealth. They can perform expert asset allocation analysis, research, monitor and design your portfolio, and help you with tax mitigation. To learn more about how we can guide you towards financial success, schedule a meeting with someone from our team of experts!

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.

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