Wealth building is the primary goal for high net worth or ultra-high net worth investors. However, we would say that wealth preservation is just as important as wealth building. Investors with $5 million to $500 million in liquid investment assets can learn about preserving wealth effectively with the help of Pillar Wealth Management. Check out our guide for investors with $10 million or more to learn some great investment strategies for preserving wealth.
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.
Table of Contents
The Importance of Preserving Wealth
Most investors spend their time looking for investments or businesses that will help grow their wealth. Many would consider this to be their primary goal. However, it can be easy to forget that building wealth can be a pointless pursuit if you are unable to preserve your wealth at the same time. You can learn more about wealth preservation by setting up a meeting with our wealth managers.
Some reasons to preserve your wealth include:
Safeguarding Your Future
Countless individuals spend decades accruing wealth for a comfortable future, only for it to disappear due to an unexpected life event or a market crash. This leaves them in a difficult financial position as they struggle to rebuild their wealth once more. However, this can be far more challenging if the financial loss occurred when they are close to retirement age.
Maintaining Your Lifestyle
Wealth preservation is also important if you wish to maintain your current lifestyle. It’s not uncommon for investors to move to better homes and spend more on luxury items as they accrue wealth. Nobody wants to give up the wealthy lifestyle they have grown accustomed to. However, it may be necessary to downgrade your lifestyle following a significant wealth loss event.
It is vital for every investor to follow the right wealth preservation strategies if they wish to maintain their current lifestyle. We discuss the importance of wealth preservation in our book The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.
Enjoying a Comfortable Retirement
Everyone wishes to retire at some point in their life. For many investors, retirement is the finish line after which they can spend the next few decades living comfortably. However, retirement is also the life stage when you will be living off your savings.
If you intend to maintain your current high-spending lifestyle into retirement, you may find your savings rapidly depleting. This makes wealth preservation especially important following retirement.
It is possible to maintain your savings by setting up passive income sources to finance your post-retirement lifestyle. You can learn about investments that generate passive income in our portfolio growth strategies guide.
Leaving Wealth For Your Children or Beneficiaries
It’s common for investors to build up wealth so that they can provide a comfortable future for their children or beneficiaries. After all, it’s only natural for you to want to provide for those closest to you. However, your efforts may be in vain if you can’t preserve your wealth up till the time it is transferred to them.
A failing business or a sudden market shift could leave you with far less wealth than before. This will limit the financial opportunities you can provide for your children and beneficiaries and possibly impact their future.
Wealth preservation is essential If you wish to provide your children and beneficiaries with the best possible future.
Strategies for Preserving Wealth
At Pillar Wealth Management, we understand the great importance of wealth preservation. We have assisted numerous clients with this very task using various strategies. Please set up a meeting with our wealth management experts to learn more about our wealth preservation strategies.
Some of our strategies for preserving wealth include:
Diversifying Your Portfolio
Diversifying your portfolio is one of the most straightforward wealth preservation strategies. Most investors realize that placing the majority of their wealth in one market or asset exposes it to great risks. If said market or asset behaves in an unpredictable way, they may be left with a fraction of their original wealth in just an instant.
There are many different ways to diversify your portfolio. However, choosing the right assets to invest in can be challenging. Some assets may provide good returns, while others offer better stability. At Pillar Wealth Management, we can help you pick diversification strategies for preserving wealth in a financial collapse. Learn how to improve your portfolio performance using our special guide.
Preparing a Will
Preparing a will may seem like a strange wealth preservation strategy. However, it is one of the more overlooked methods for wealth protection. Wealthy individuals who pass on without a will in place leave their wealth in the hands of judges or state officials. These parties may not know who you intended to pass your wealth onto. As a result, your assets could be given to the wrong person or subjected to heavy legal fees.
By preparing a comprehensive will, wealthy investors can minimize taxes upon death and ensure the right parties receive their wealth.
Giving Away What You Don’t Need
Estate taxes are your worst enemy when you are attempting to preserve your wealth. If you intend to give your wealth away to your children or beneficiaries, estate taxes may consume a significant chunk of your savings.
You can reduce the estate tax amount owed by giving away what you don’t need while you are still present. This strategy ensures your children and beneficiaries receive however much you intended to give them without worrying about estate taxes.
Asset insurance can also help you keep your wealth protected. This type of insurance shifts the risk of losses or damage to your assets to an insurance company. Asset insurance functions as a safety net that minimizes your losses during an unexpected financial event.
Most high net worth or ultra-high net worth individuals already have some type of asset insurance in place. However, our wealth managers can help you select plans that offer broader coverage to keep you and your assets safe during such events. We discuss asset protection in our guide for investors with $10 million or more.
Forming a Limited Liability Company
A great strategy for protecting your wealth is to form a limited liability company. This method is useful for entrepreneurs or self-employed individuals who wish to separate their personal assets from the business they own.
A limited liability company is essentially a separate legal entity for whom the owner is not liable. This means any claims or lawsuits against the business will not affect your personal assets, thereby keeping them safe. Our wealth managers can offer guidance with the process of setting up a limited liability company that is easy to manage.
Starting a Non-Profit Organization
Starting a non-profit for preserving wealth is another excellent strategy. These organizations are stable and receive donations from a wide variety of places. In addition to this, non-profit organizations are exempt from federal income taxes. This means you will actually owe fewer taxes by investing in your non-profit organization.
Setting up a good non-profit for this purpose requires multiple steps. Our wealth managers will be happy to assist you with this task. Please set up a meeting with us to learn more about non-profit organizations and how they can help you preserve your wealth.
Why Choose a Wealth Manager Over a Financial Advisor?
We have discussed many ways in which a wealth manager can help you preserve your wealth. However, you may be wondering why it is better to use the services of a wealth manager over an ordinary financial advisor. There are several reasons to choose a wealth manager for wealth preservation. This includes:
Wider Variety of Services
The main area in which wealth managers differ from ordinary financial advisors is in the number of services they provide. Our wealth managers provide a much wider range of services compared to ordinary financial advisors. This includes:
– Wealth Transfer
– Estate Planning
– Risk Management
– Insurance Planning
– Tax Planning
– Asset Allocation Analysis
Each of these services can help with wealth preservation in some way. You can still avail these services from an ordinary financial advisor, but you may need to visit multiple advisors to enjoy the full range of services. So why not choose a financial professional who can do it all? We discuss ways to select the right financial advisor in our special guide.
Experience With High Net Worth and Ultra-High Net Worth Clients
Wealth managers also differ from financial advisors in that they offer services only to clients with a high net worth or an ultra-high net worth. At Pillar Wealth Management, we take on clients with $5 million to $500 million in liquid investment assets.
This means wealth managers have a good understanding of the various needs and concerns specific to wealthy individuals. They can offer the right advice to help you meet your wealth preservation goals.
Wealth managers also charge more straightforward fees compared to financial advisors. At Pillar Wealth Management, we charge clients a fixed annual fee based on a percentage of their asset value. Financial advisors may charge their clients on an hourly basis or each time they request a financial plan. This means you may be charged each time you use a financial advisor’s services.
Clients can reach out to a wealth manager for assistance whenever needed without worrying about paying extra. This arrangement encourages you to use a wealth manager’s services more frequently than you would use a financial advisor’s services.
Why Choose Pillar Wealth Management
If you have chosen to use a wealth manager’s services for wealth preservation, you can’t go wrong by choosing Pillar Wealth Management. High net worth and ultra-high net worth individuals across the country use our services for various reasons. This includes:
At Pillar Wealth Management, our wealth managers possess experience in the areas where it counts. We have six decades of experience serving high net worth and ultra-high net worth clients. Our wealth managers become more knowledgeable with each passing year and are well-equipped to help you take on the various challenges of wealth preservation.
We understand that every client has unique needs. Some have a deep understanding of finance and require assistance only with executing advanced strategies. Others are unfamiliar with finance and require our help each step of the way.
At Pillar Wealth Management, we offer personalized plans to help you achieve your wealth preservation goals. Our wealth managers will be there to offer services and advice to fit your unique situation regardless of your background.
Easy to Reach
A good wealth manager should always be easy to reach. After all, communication is a crucial aspect of the wealth manager-client relationship.
Our clients know that they can contact us whenever they need assistance with a financial matter. We strive to ensure our phone lines are always available, and you can rest assured each of your calls will be answered by a human being rather than an automated system. Please get in touch with Pillar Wealth Management today, and start preserving your wealth for the future.
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