wealth planning firm

Wealth Management Retirement Planning is a holistic approach to financial planning that caters to high-net-worth individuals (HNWIs). HNWIs have considerable holdings, often from diverse income streams, and at least $1 million in liquid or investable assets. These clients require services beyond standard financial planning which mainly focuses on budgeting and saving for major milestones like college and retirement. Wealth managers or advisors service HNWIs with capital gains, estate planning, and risk management for their investments. They create a personalized strategy for HNWIs to preserve and grow wealth over time based on their financial goals, current assets, liabilities, income, and expenditures.

What Does a Wealth Advisor Do?

For those with complex, high-value portfolios a wealth advisor can simplify asset management and mitigate risk. Wealth advisors also integrate services from external experts including attorneys or accountants for things like tax decisions, will and trust management, and business succession planning. They may offer advice on charitable giving and provide certain banking amenities. [1] Other services wealth advisors provide include:

Financial planning: Developing a plan that allows clients to achieve their financial goals is something all financial planners do. But for HNWIs, the picture is more complex and may include cash, stocks, bonds, mutual funds, real estate, businesses, and other investments. Wealth managers review the complete package to create a tax-advantaged plan that minimizes risk and positions HNWI clients to maximize income streams throughout retirement. This may require the additional services of financial specialists, accountants, and attorneys.

Tax advice: Tax codes can be hard on high-income earners. Wealth advisors understand the tax implications and intricacies of retirement planning for HNWIs. Wealth advisors employ strategies to minimize the tax impact on accumulated wealth. For example, wealth advisors can optimize tax positioning and enhance retirement income through tax-deferred accounts, Roth conversions, and charitable giving. Note that it’s best practice to have a certified public accountant (CPA) review important tax decisions.

Estate planning:

Wealth advisors ensure a smooth transfer of wealth for HNWI beneficiaries with careful estate planning. They facilitate will preparation. They safeguard assets through insurance coverage and establish legal trusts. Trusts can reduce estate taxes, manage asset distribution, and avoid the probate process at the time of asset allocation. Additionally, charitable remainder trusts allow HNWIs to reap tax benefits while funding philanthropies. Again, a CPA should be part of the estate planning process in conjunction with a wealth advisor.

Why is Wealth Management Important?

Because of the higher risk associated with HNWI portfolios, a move in the wrong direction can mean thousands or more. HNWIs must strive to preserve their wealth and protect their assets. A good wealth advisor will ensure that high-income earners make informed tax and investment decisions so they retire comfortably. Other considerations for a comprehensive wealth management strategy include:

  • Longevity—All retirees must consider that people are living longer. HNWIs are no different. A wealth management strategy can extend savings and preserve a lifestyle for 20 to 30 years and beyond.  
  • Inflation—No one escapes inflation. As the cost of living, goods, and services increases over time, it reduces purchasing power. Wealth management includes inflation in the planning approach so HNWIs can maintain their purchasing power.
  • Healthcare costs—Medical costs rise with age and longer life spans increase the probability of needing long-term care. Wealth managers can leverage assets in several ways to cover long-term care and out-of-pocket medical expenses.
  • Lifestyle maintenance—Wealth managers work with their clients to set goals and priorities for their retirement lifestyle. Understanding client expectations for life in retirement provides benchmarks for income needs, a key part of the wealth planning process.
  • Legacy planning—Because of their many assets, HNWI estate planning can have more complexities than the average individual. Advisors establish trusts and put legal guidelines in place for distributing their client’s wealth and assets after death and settling the details of HWNI estates.

Wealth Management Strategies

Wealth advisors use several methods to strengthen HNWI portfolios, which include asset allocation, diversification, rebalancing, and tax-loss harvesting. With asset allocation, wealth managers invest in various stocks and bonds. This also helps with diversification, which spreads investment dollars across assets to minimize risk and loss. Rebalancing adjusts the portfolio’s risk/reward ratio as investor circumstances or changes in the market occur. Finally, tax-loss harvesting involves selling securities that have experienced losses and replacing them with similar investments to minimize capital gains taxes. [2]

High-earning individuals should partner with a qualified wealth advisor to devise a personalized investment strategy, mitigate risk, minimize tax burden, maintain their financial portfolio, and create a comprehensive estate plan. Wealth advisors provide insights into multifaceted financial matters and are legally obligated to act in their client’s best interests. They have access to a diversified team of specialists to help with complex situations. SHP Financial offers a complimentary financial assessment and will match you with a qualified wealth advisor. Click here for your free review today.



[2] https://www.forbes.com/advisor/investing/financial-advisor/what-is-wealth-management/

The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by tMedia, LLC, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. tMedia, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC.. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product.
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