Taking the complexity out of financial planning is critical to increasing and keeping your wealth as a high-net-worth individual with a varied range of assets.
We'll look at the subtleties of high net worth financial planners' planning, and its main benefits.
Who should seek high-net-worth financial planning services?
Although the term "high net worth" is subjective, your net worth is generally regarded high when your net assets exceed $2 million. When that figure surpasses $10 million, you've entered the realm of "extremely high net worth." This may also be influenced by current estate laws.
Individuals with a high net worth typically have more than enough wealth to support themselves over their lifetime or fall into this group in terms of estate planning. According to current US law, if the assets in your taxable estate at death total more than $11 million for an individual or $22 million for a couple, you have a high net worth and are not eligible for the federal estate tax exemption. However, in 2026, the exemption level will be reduced to around $5.5 million per person.
Working with a financial advisor who can keep you informed about legislative developments and help you understand your position on the net worth planning spectrum is critical to developing your wealth and protecting it for future generations.
Benefits Of High Net Worth Financial Planning
- Making Your Life Less Complicated
Prioritizing HNW financial planning and entrusting your estate to a professional can alleviate the burden of difficult circumstances, make your financial problems manageable, and provide you with peace of mind. A financial advisor can also assist you in weighing all of your alternatives and explaining the potential outcomes of each one, as some estate planning decisions are irreversible.
- Keeping Your Tax Burden to a Minimum
Consider how to lower your tax bill while you're still working, for example, by postponing taxes and ensuring your investment portfolio is tax-efficient.
Another key component of the jigsaw is to consider how to avoid leaving a huge tax burden on your children or grandkids when you pass away. It's crucial to work with a financial firm that has strong ties to estate planning attorneys.
- Maximizing Your Investments
Any investing strategy's core element is timing. As a high-net-worth individual, time is often on your side because you'll almost certainly have enough wealth to fund your retirement, and even if you do need to take money out of your portfolio, the growth of your assets will often outpace the amount taken for living expenses. This allows you to invest more aggressively than you might if you had a shorter time horizon, and market volatility will be less of a concern.
- Your Charitable Wishes Will Be Fulfilled
HNW financial planning can help you simplify your charitable giving approach both now and in the future. When it comes to donating to charity, you have a lot of options and resources as a high net worth people. You may, for example, gift-appreciated stocks to reduce your taxes or set up a charitable remainder annuity trust to remove taxable assets from your estate.