4 Areas Your Financial Planner Should Cover as a High-Net-Worth Individual

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Unlike average investors, high-net-worth individuals (HNWIs) typically utilize accumulated assets and a constant income stream to pay for their future expenses. Given the complex nature of their portfolios, HNWIs require assistance from experienced financial planners who understand their unique situations and needs. Discover four key areas a financial advisor for high-net-worth individuals should cover.

What is a High-Net-Worth Individual?

Although there is some debate, most people classify an HWNI as someone whose net assets equal $2 million or more. An individual with $1 million or more in liquid financial investments may also be considered high net worth. If a person has over $10 million in net resources, they are an ultra-high-net-worth individual. Regardless of the specific amount of assets, HNWIs typically have more than enough wealth to sustain themselves for life.

Since HNWIs have complex and extensive portfolios, few can manage their wealth without assistance from a financial planner. Some advisors specialize in high-net-worth planning and can direct clients to the unique advantages and opportunities that come with being an HNWI.

How Can an HNWI Financial Advisor Help?

The most effective financial plan is the one that puts your needs and desires at the forefront. To help you achieve your goals, knowledgeable advisors take multiple aspects of financial planning into account. The following areas are among the most vital to discuss with high-net-worth clients:

Estate Planning

Life is uncertain, and an incapacitating illness or sudden death can strike at any moment. To ensure your wealth benefits loved ones, you should prepare your estate and determine how to distribute your assets. Estate planning for high-net-worth individuals is also significant because recent developments in U.S. legislation may have made some existing strategies ineffective. If you do not update your estate planning strategies as regulations change, you risk shortchanging your family members when they inherit your wealth.

Estate planning is essential to providing peace of mind about your assets. At Park Place Financial, we help HNWIs navigate various aspects of the estate planning process, from the drafting of wills and trusts to the assigning of health care proxies and durable powers of attorney. Additionally, our estate planning specialist helps clients prepare for possible life scenarios and manage their money according to their wishes.

Income Tax Planning

As HNWIs have higher incomes, they also have increased taxes. However, some financial planners offer strategies to help HNWIs reduce their taxes legally. These advisors strive to ensure that clients pay what is required by law but not more than necessary. Ultimately, this service provides HNWIs with more money to cover current costs or devote to their estate and beneficiaries.

While select certified financial planners (CFPs) may offer income tax planning, the advisors at Park Place Financial understand how crucial this service is for HNWIs. We evaluate your current financial profile and then suggest steps you can take to reduce your tax contributions, such as mitigating investment expenses and converting IRAs into Roth IRAs. The strategies we recommend reflect the circumstances of each client, ensuring you have a personalized tax plan that meets your distinct needs.

Retirement Planning

While you must plan for retirement like all other investors, the process looks substantially different as an HNWI. If your wealth informs your lifestyle, you need sufficient funds to achieve your retirement dreams. A good financial advisor should offer insights into enhancing your income and portfolio to ensure your retirement account matches your needs and goals. They will look at your expenses, revenue, and lifestyle to determine the best course of action in saving for retirement.

At Park Place Financial, we recognize the nuances HNWIs face with retirement planning. Using a well-constructed, four-stage process, we examine your financial information from different perspectives and levels of expertise to develop a customized strategy for your retirement. We believe in long-term guidance and will alter your plan to reflect changes to your financial situation and personal wishes.

Multigenerational Wealth Planning

Since your wealth will likely outlive you, your financial planner should cover heritage wealth as part of their high-net-worth planning services. While multigenerational planning is similar to estate preparation, it focuses more on a broader approach to protecting your assets for future generations. Financial advisors who offer multigenerational planning services can help you handle various aspects of heritage wealth, including annual gifts and trusts, charitable giving, and inheritance investing.

At Park Place Financial, we simplify heritage wealth planning by helping clients leave a legacy with their assets while accruing as few taxation issues and probates as possible. After discussing your needs and examining your financial documents, we will design a comprehensive and action-oriented plan for securing your wealth for succeeding generations.

Seek Expert Financial Help Today

Whether preparing for retirement or building a legacy, high-net-worth individuals have distinct needs and require assistance from knowledgeable financial planners. The CFPs at Park Place Financial have the expertise to guide HNWIs through estate, tax, retirement, and heritage wealth planning. As fiduciaries, we conduct services with the utmost transparency and integrity to put client interest above our profits.

Contact us today to speak with a financial advisor for high-net-worth individuals or learn more about our services.


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