Financial Planning for High Net Worth Individuals

In today's world, where the economy is constantly fluctuating and financial markets are becoming increasingly complex, it is more important than ever to have a solid strategy in place for managing high net worth. A high net worth individual is someone with investable assets of $1 million or more (excluding personal property and primary residence). These individuals may have unique financial needs and challenges, and require a different approach to wealth management compared to the average person.

Understanding High Net Worth Strategies

High net worth strategies are designed to help individuals with significant wealth with a goal of achieving their financial goals while also protecting their assets. These strategies encompass a wide range of financial planning techniques that can be tailored to an individual's specific needs and preferences. They often involve a combination of investment management, tax planning, risk management, and estate planning.

Maximizing Wealth

One of the main objectives of financial planning for high net worth individuals is to maximize wealth for them and their families. This involves creating an effective investment portfolio that can generate consistent returns while also mitigating risks. High net worth individuals have access to a wide range of investment opportunities, including private equity, hedge funds, and real estate investments. These strategies often involve diversifying assets across different asset classes and markets to minimize risk and maximize returns.

Securing Financial Freedom

Another important aspect of financial planning for high net worth individuals is securing long-term financial freedom. This involves creating a financial plan that takes into account retirement goals, education expenses, and any other long-term financial obligations. High net worth individuals often have complex financial situations that require careful planning to ensure their wealth is preserved for future generations.

Tax Planning

High net worth strategies also involve effective tax planning to minimize the impact of taxes on an individual's wealth. This may include utilizing tax-advantaged investment vehicles such as individual retirement accounts (IRAs) and 401(k)s, as well as tax-efficient estate planning techniques. High net worth individuals may also have access to specialized tax strategies, such as charitable giving and trust structures, to further minimize their tax liabilities. Tax-loss harvesting is another way to potentially reduce the tax burden of portfolios. Many investors find themselves holding assets that are worth less than they initially paid for them. These unrealized losses may provide some value, the ability to reduce a tax liability. What is tax-loss harvesting? Simply put, tax-loss harvesting is the process of selling securities that have declined from the original cost basis and using the realized losses to offset capital gains tax due on other investments in a portfolio. Finally, tax diversification may help portfolios last longer. Tax diversification is the practice of diversifying assets across different account types with varying tax characteristics. Since tax policies are always changing, tax diversification provides the flexibility to withdraw assets from optimal sources at preferred times to help preserve retirement assets. The 3 main account types are taxable, tax-deferred, and tax-free. This strategy can help protect against higher tax rates in the future and improve the longevity of retirement assets.

Risk Management

Managing risk is a crucial aspect of financial planning for high net worth individuals. High net worth individuals often have significant assets that need to be protected from various risks, such as market volatility, economic downturns, and potential lawsuits. These strategies may involve diversifying assets across different markets and asset classes, using hedging techniques, and obtaining adequate insurance coverage.

Estate Planning

Estate planning is an essential part of high net worth strategies that ensures the smooth transfer of wealth to future generations. This involves creating a comprehensive plan for distributing assets, minimizing tax liabilities, and protecting the interests of beneficiaries. High net worth individuals may also utilize trusts and other legal structures to preserve their wealth and provide for their loved ones. For example, asset protection for a spouse and children. An Estate Plan can utilize a “Protected Trust” for a surviving spouse or other beneficiaries. Depending on how the Trust is drafted, there can be dynamite asset protection from creditors, bankruptcy, and divorce.


High net worth strategies play a crucial role in helping individuals with significant wealth achieve their financial goals while safeguarding their assets. These strategies involve a combination of investment management, tax planning, risk management, and estate planning techniques tailored to an individual's unique financial needs. By understanding and implementing these strategies, high net worth individuals can maximize their wealth and secure long-term financial freedom for themselves and their families. So if you are a high net worth individual, it is important to work with a trusted financial advisor who can help you develop and implement a personalized high net worth strategy with a goal of meeting your specific financial goals and needs. Remember, with proper planning and execution, you will be working toward achieving your desired level of financial success and security. So don't wait, start exploring high net worth strategies today!

Scott Krase
Wealth Manager
Connor & Gallagher OneSource

This blog is for educational and/or informational purposes only and does not constitute tax, financial, or legal advice.

Investment advisory services offered through Global Retirement Partners, LLC dba Connor & Gallagher OneSource, an SEC registered investment advisor.


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