You’re different. As an ultra high net worth individual, your financial picture, life goals, how you spend your time, what you need, and what’s important to you differ radically from everyone else, including high net worth individuals who have less than $10 million in net worth.
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What is ultra high net worth?
Most wealth advisors would say the ultra high net worth lifestyle begins at around $30 million. However, the issues that face people with ultra high net worth often begin sooner than that.
Those differences are the subject of this post.
Have you ever sat and listened to financial ‘experts,’ and felt like what they’re saying doesn’t really apply to you?
So many advisors and commentators are speaking to the masses, trying to appeal and relate to as many people as possible. But when they do that, they immediately feel less relevant to you.
Do you want to hear a talk about paying down credit cards? Or paying off car loans? Or how to improve your credit? No – these aren’t the problems that concern people living the ultra high net worth lifestyle.
What you’re feeling in those types of situations is quite normal. And, it’s completely unacceptable, because it wastes your time. You need something more. And to find it, you first need to understand why you’re different.
When you’re done with this article, you’ll understand much more about yourself, your needs, and how to get them met in a more efficient and effective manner.
Let’s break this down:
There are at least three distinct differences that set you and anyone with ultra high net worth apart from everyone else.
These differences have a profound impact on things like:
- Managing your investments
- Creating estate plans
- Minimizing taxes
- Allocating your assets to protect your wealth from sudden market crashes.
In addition to the 3 differences you’ll find in this article, you can find much more depth in our signature work, 7 Secrets to High Net Worth Investment Management, Estate, Tax and Financial Planning, you can get your free copy here.
Just so we’re clear:
At Pillar Wealth Management, we work exclusively with high net worth, as well as ultra high net worth investors with $5 million to $500 million in investable assets. If you are looking for a qualified team of wealth managers, click here to book a free consultation with us.
Now, it is essential to understand the differences between high net worth and ultra high net worth individuals in your city or state.
Here are three of them:
1. Higher Wealth Demands Greater Customization
At least – it should.
If you have $10 million in liquid assets, your investment plan should not be lumped in with people who have less than 1% of your net worth. And to be clear, this is not about being ‘better’ than people with less money. It’s simply a reality:
With great wealth comes great complexity.
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You need customized investment planning. If you don’t get it, you put your assets at unnecessary risk. The scale of loss you face if you do it like everyone else far outweighs that of others.
For example, suppose two investors lose 33% of their portfolio value in a market crash, such as the one caused by the coronavirus.
An ultra high net worth investor who had $75 million will lose $25 million. A more typical investor who has $200,000 will lose $67,000. Now, losing $67k is no picnic if all you have is $200k, so let’s not minimize that.
But let’s get real:
Losing $25 million simply does not compare. This is generational wealth. To learn more about how a wealth manager can prevent this from happening, order a free copy of our book, 7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning
Here’s the frustrating part:
An ultra high net worth investor should not be exposed to this much risk. Ever.
But cookie-cutter financial plans from big banks, Wall Street, and discount brokers have driven us to write this post to warn and educate ultra high net worth families about the devastation such losses would inflict.
At Pillar Wealth Management, we utilize a variety of techniques that can secure your portfolio and virtually eliminate the chances of you suffering these kinds of losses. To learn more about this, click here to read our guide on how to improve portfolio performance.
We’ve seen investors lose as much as 80% of their wealth in market crashes due to poor financial planning from other firms.
Can you imagine?
The stakes for high net worth and ultra high net worth households are too high.
Here’s the good news:
There is a better way. Customized financial planning – based upon your goals and preferred lifestyle outcomes – offers the greatest potential for long term financial stability.
Very few financial advisors offer 100% customized financial planning, even to ultra high net worth investors. They will tell you they do. But it’s not at the level you are expecting, and that’s why you never quite feel like you’re in the right place when you’re listening to the’experts’ talk.
It’s in your best interest to talk with someone who does both: expertly advises high net worth clients and offers custom wealth planning services.
To understand the importance of custom wealth management in more detail, we recommend reading our free book.
A call to Hutch Ashoo, CEO and Co-founder of Pillar Wealth Management would be a good first step if you want to see how fully custom financial planning looks and feels when it is created for someone with ultra high net worth. Our firm does nothing but custom wealth planning for high and ultrahigh net worth investors.
2. Higher Wealth Means Greater Need for Additional Services
Many wealth managers set minimum requirements on who they will work with. Pillar Wealth Management requires a $5 million minimum. Why? Part of the reason is because the array of services you need increases with greater wealth.
This is mind-blowing:
As part of our across-the-board fee of 1% (reduced for $10+ million clients), you would get all of the following white glove services at no extra charge:
|Coordination of estate planning that minimizes taxes and protects assets from creditors|
|Quarterly updates, rebalancing, and portfolio adjustments|
|Friendly humans answer your calls or call back the same day|
|Insurance advice or counsel|
|Trustee selection & family governance assistance|
|Tax planning coordination with your tax advisor, accountant, and other key members of your team|
|M&A assistance for businesses|
|Manage family business succession|
|Help with debt consulting (lines of credit, mortgages, etc)|
|Assist with college education planning (such as 529s)|
|Set up assistance with aging parents and care-giving|
Try getting even half of these from a typical financial advisory firm, big bank, or discount broker.
It’s just not their business model. Why? Because they serve the masses, and have designed their processes and methods around meeting the needs of a vast number of people, because most people have fairly similar needs when you boil it all down.
But not you.
Anyone with ultra high net worth will need most if not all of the highly specialized wealth management services listed above.
You are different. And you need a different level of service from a wealth management firm.
If you are interested in learning about how to find a financial advisor that can offer you this approach, click here to read our guide.
3. Knowing Your Worth Clarifies Your Goals
Let’s dream a little:
If you have $25 million upon retirement, you might set a goal to have $70 million remaining when you die so you can pass on an ultra high net worth legacy.
That’s just one dream. You could come up with a hundred more for each person, because everyone with ultra high net worth has a very different life situation.
Knowing your goals comes first, because that determines the customized investment plan you’ll use to reach these goals, and it will direct you to the additional services you’ll need to make it happen.
Are you getting the picture?
Do you see how all three of these reasons relate to each other?
This is what it means to be ultrahigh net worth. You don’t just have ultra high net worth or live an ultra high net worth lifestyle. You are ultra high net worth.
The farther up that scale you go, the more services and customization you need to achieve your expanding set of goals and lifestyle dreams.
What’s possible for you is far beyond the comprehension of the average person, even someone with one or two million dollars. They’re still trying to figure out how to become ultra high net worth. You already are.
If you have over $10 million in liquid assets, then click here to download our guide on finding a financial advisor that offers a high level of customization.
But take note:
Pillar Wealth Management only accepts those clients that understand the difference… that appreciate the value of a custom wealth management plan for their assets. If you do, or you just want to know more about what a custom wealth plan entails, schedule a call to Hutch Ashoo, CEO and Co-founder of Pillar Wealth Management.
With his 30+ years of experience, Hutch can explain exactly how a custom wealth plan is not just created but modified over time according to changing circumstances.
We encourage you to call Hutch. As a high or ultra high net worth investor, your portfolio… your family… your legacy may depend on it.
Ask Pillar Wealth Management for Help Clarifying and Achieving Your UHNW Goals
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