It takes ambition, consistency, hard work, and courage in the journey to amassing wealth and becoming a high net worth individual or even an ultra-high net worth individual. These individuals need to work closely with professional high net worth investment management to preserve and grow their wealth. 

Finding and working with the right wealth manager is critically important in growing your wealth. Professionals will help in using the best investment vehicles, proper estate planning, and dealing with changing tax regulations. 

The following are top tips from experts to help ensure your wealth flourishes. Each tip is meant to provide clarity and insight into important financial decisions taken along the way. 

Partner with Financial Experts

In this case, you should find high net worth investment advisors to partner with and gain from their specific expertise and experience in financial stewardship for high net worth individuals. 

Without doubt, the needs of high net worth individuals are markedly different from those of ordinary people starting on the path to wealth creation. Financial planning, estate planning, tax matters, and risk reduction for this group of people are all different compared to people with fewer assets. All these processes and tasks require an experienced professional to work on them. 

High net worth investment management is about creating deep relationships based on understanding of the goals, objectives and lifestyle of a high net worth individual. It requires a greater level of personal contact and service which compels these individuals to work with fewer clients. WEALTHinsurance.com will be in a position to take a holistic look at the assets of a high net worth individual and evaluate how they may impact their life. 

You should not settle for anything less than expertise, experience and personalized service to ensure effective management and growth of your wealth. 

Comprehensive Financial Planning

High net worth individuals need above-average financial planning due to factors such as dealing with higher taxes, managing a large investment portfolio, managing numerous properties, and many other complexities brought about by vast wealth. 

Through comprehensive financial planning, there will be effective management of all these different aspects as well as the creation of good strategies to protect and build wealth. This level of financial planning needs high  net worth investment advisors takes care of more than just regular income projections and retirement savings but it also includes investment planning, taxes, risk management, management of debt, retirement planning, and estate planning. 

Consolidation of Assets

Many high net worth individuals think that diversifying their investments is holding multiple but similar investment accounts with different financial institutions. However, diversification should be about how your money is invested. 

Consolidation of assets with just one high net worth investment management service has its own benefits that include:

• Elimination of duplication of efforts and investments through better coordination. You may have two different sets of advisors doing the same things due to a lack of coordination. 
• Reduction of costs: Having to open similar investment accounts with multiple financial institutions will most likely lead to rising costs. 
• Efficient retirement planning out of the fact that your advisor is able to get a better understanding of all your income sources. 
• Effective and streamlined administration through fewer tax forms and account statements as well as easier tracking of investments. 
• Simplified estate settlement through the creation of a single point of contact. 

Imparting Financial Responsibility to your Children

The value of money and the hard work that goes into building wealth can be lost on children and grandchildren who are born into relative privilege. Many high net worth individuals will want to see their wealth cascade down to many generations after them.  

Teaching financial responsibility to children is critical to maintaining and growing wealth.  Your children should understand basic financial principles such as budgeting, financial responsibility, and the value of money from a young age. 

Equally, plan for business succession if you intend to pass on your businesses to your children and grandchildren. Start off by identifying the children with the greatest ability and interest in the business and gradually involve them in the daily running of the business. Get them to learn all business processes, meet important business contacts, and assume roles of responsibility to ultimately become the overall head. It is recommended that the transition takes between 5 and 10 years. 

Risk Management

Risk management is a critical pillar to protecting your hard earned wealth. Risks such as change in tax regulations, market volatility, and lawsuits have wiped out significant portions of the wealth of high net worth individuals. For example, taking liability insurance among other measures will help protect your assets even in the aftermath of lawsuits. 

The diversification of your investments will help to deal with the risk associated with market volatility. An effective model used in the diversification of investments is spreading them into different geographic locations, industries and even tax brackets. 

Income loss is yet another risk that can come about due to serious illness or disability. Critical illness and long term care insurance will help to protect you from the risk of temporary or permanent income loss.  

Take out Life Assurance

Life assurance especially when written under trust will help your dependents/beneficiaries to have the money to pay bills. It is important to note that life assurance doesn’t reduce your potential inheritance tax liability. 

Life assurance will prevent your assets from being liquidated by executors of your estate or from being seized by your creditors. Since life assurance is a long term commitment, make sure that you provide for the payment of premiums for life during financial planning

Giving to Charity

Surplus assets can be donated to charitable organizations to help avoid capital gains tax and effectively reduce taxes payable. Publicly listed securities will not attract capital gains tax once they have risen in value after donation to charity. 

Setting up a charitable foundation may help create a lasting philanthropic legacy linked to your name or brand. The private foundation will give you better control and greater flexibility.