Financial Services for High-Net-Worth Individuals FAQs

High-net-worth individuals have unique financial situations. No two people’s finances are ever alike, which is why you need financial services tailored to you.

In today’s blog, The Whitlock Co. answers frequently asked questions about financial services for high-net-worth individuals.

What is a high-net-worth individual?

Someone who has at least $1 million in liquid financial assets. Some financial planners may have a $2 million or $3 million threshold for high-net-worth individuals.

Why does a high-net-worth individual need financial services from a professional?

Because it may take more work to maintain, preserve, and grow liquid assets starting at $1 million or more. 

How many high-net-worth individuals are there in the United States?

Approximately 4.7 million across the country.

What financial services can high-net-worth individuals take advantage of?

  1. Wealth management. The Whitlock Co. is a member of The Professionals Alliance Group, and we collaborate with Oppenheimer & Co. to help you develop comprehensive wealth management strategies. Oppenheimer is a leading national investment boutique based in New York City, listed on the New York Stock Exchange, and founded in 1881. When you work with The Whitlock Co, you get access to Oppenheimer’s considerable wealth management capabilities as well as investment products and services. We’ll help you manage your wealth through one of the nation’s top management companies.
  2. Consulting and planning. We offer a number of consulting options to help you plan for your financial future using the assets you have on hand.
  3. Tax preparation and planning. Tax laws change from year to year, and limits on deductions change when the IRS alters the numbers based on calculations from previous years. While these numbers change slightly, for high-net-worth individuals the figures add up. We can advise you on the best tax strategies from year to year.
  4. Estate planning. You want your legacy to move on based on your wishes. We will work with your estate planning attorney to develop the right plan for your spouse, children, grandchildren, or any charities that can benefit from your estate after you pass away.

What should high-net-worth individuals come to expect from their advisors?

High-net-worth individuals require robust planning and conscientious advice as part of their services, including:

  1. Quality information on market behavior, investment curves, and anticipating where markets are headed based on current data analysis. Expect to get an analysis of your ROI, investment strategies, and a long-term plan for your investment capital.
  2. Digitization. There are plenty of ways to send information securely through the internet. You can access your investment information quickly and easily through online portals.
  3. Evaluating risk. High-net-worth individuals must understand the risks of their investments to understand better how to shift liquidity from one type of asset to the other. Regular updates on risks are vital to the success of your investments.
  4. Avoiding risk. Having a risk-averse plan is the best way to move forward. A robust plan with fund analyses across all investments can help you mitigate risks as much as possible with a diverse portfolio.
  5. Communicating. Regular communication builds trust. In times of market volatility, weekly updates might be relevant rather than monthly or quarterly investment updates.
  6. Reporting accuracy. Having accurate reports, along with regular communication, allows high-net-worth individuals to make informed decisions on their investments. Several software tools help with accurate reporting.
  7. Building trust. All of these things build trust between advisors and clients. Trust is critical to developing a long-term relationship, and it adds value to what we do.

What unique financial situations do high-net-worth individuals need help with?

Each person’s finances are unique, which demands unique planning.

In general, high-net-worth individuals need assistance with:

  1. Creating a comprehensive financial plan designed to grow wealth effectively while allowing your investments to do most of the hard work.
  2. Mitigating risks to their investments, whether it’s from inflation, hits to the stock market, a recession, or a failed investment in a company.
  3. Retirement planning, particularly if you’re a business owner or C-suite executive. Several considerations come into play, including what lifestyle you want to lead, your nest egg, current retirement income, and your current expenses.
  4. Estate planning for your heirs, including your children and grandchildren. Estate planning has tax and legal implications, and your financial services company can help you navigate them.
  5. Passing financial education to your children. You spent a lifetime accumulating your wealth. You want your children to pass on your legacy so they can live comfortable lives without struggling. 

What are the benefits of financial planning for high-net-worth individuals?

You can realize several benefits of planning for your financial future, including:

  1. Reducing the complexity of your life. You’re a very busy person, and our team can prioritize your investments to simplify your life a bit more. You can get a bigger picture of what your investments should look like in five, 10, and 20 years so you can devote the right amount of time to your various investments.
  2. Protecting assets from liability and litigation. Financial planning should take into account the titling and contracts of your assets to make sure you are the rightful owner and how you, as the owner, can assert your control over them.
  3. Maximizing your investments. Should you invest aggressively in short-term wins? How long should you hold on to certain mutual funds? What about buying and selling land, precious metals, or companies? You can shift your investment capital around to maximize your profits.
  4. Minimizing your tax burden. Optimizing your investment portfolio, deferring taxes, making charitable contributions, and adding money to retirement funds can all help you reduce your tax burden from year to year.

How do high-net-worth individuals develop a solid financial plan?

Just like any plan, you have several steps to achieve a solid financial plan for your investments.

  1. Set goals. Do you want to have a higher standard of living in 5, 10, or 20 years? Or do you want to maintain your current standard of living throughout your life? Your goals determine how you should invest your money.
  2. Organize your assets. Your financial advisor should know how your accounts and trusts are held, how your assets are titled, how your investments are allocated, and what levels of insurance you hold to protect your money. You have several options for organizing your options, including setting up some in a trust for your estate, to realize some benefits.
  3. Keep your plan proactive, and adjust it as needed. Once you set up a plan, revisit it periodically to make sure it still aligns with your goals. If you decide to change your goals, you might need to change how you invest your money. If your investments change, if their value rises or dips in ways that you don’t expect, you can change your goals.

Contact The Whitlock Co. for Financial Services for High-Net-Worth Individuals

The experienced team at The Whitlock Co. offers a full slate of financial services for high-net-worth individuals, including tax planning and preparation, wealth management, estate planning, consultation, and planning.

Contact us to request a consultation, and we’ll start the conversation. 


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