Real Wealth Management: Addressing the Top Concerns of the Affluent and High Net Worth Individuals

August 23, 2023

For High Net Worth Individuals (HNWIs), managing substantial wealth goes beyond mere accumulation. It involves addressing a diverse range of concerns, such as wealth preservation, wealth enhancement, wealth transfer, wealth protection, and charitable giving. Real wealth management serves as a comprehensive solution to navigate these complex challenges effectively. In this blog, we will delve into each of these concerns and explore how real wealth management can help affluent and HNWIs pursue their objectives in these key areas.

Wealth Preservation:
Above all else, the affluent are concerned about losing their wealth. Despite their wealth, they are not immune to financial setbacks. But wealth preservation is not only about not losing money—it’s about having enough money to fund their lifestyles, whether simple or extravagant. The goal of wealth preservation is to produce the best possible investment returns consistent with the client’s time frame and tolerance for risk. This is the primary area of focus for most other financial advisors. As a wealth manager, investment management will be only the foundation of the value we provide to affluent clients.

Wealth Enhancement:
Wealth enhancement involves seeking opportunities to grow wealth strategically. One of the biggest risks to wealth is income and possibly estate taxes. We explore avenues to minimize the tax impact while living and at the person’s passing. As a Certified Public Accountant and CFP professional, I have access to insights and experience that help identify opportunities and the creation of strategies to help minimize the impact of taxes. I am always reviewing client information and looking for ways to help increase cash flow to create opportunities to further enhance wealth.

Wealth Transfer:
Transferring wealth to future generations while minimizing tax implications is a critical concern for HNWIs. Real wealth management employs estate planning strategies that go beyond basic wills and trusts. We collaborate with tax and legal professionals to design comprehensive estate plans that ensure a smooth and efficient transfer of assets. This may involve establishing family trusts, and charitable foundations, or utilizing advanced planning techniques like gifting or life insurance strategies. Through meticulous structuring and careful consideration of tax implications, we help the affluent and HNWIs create a lasting legacy and pass on their wealth according to their wishes.

Wealth Protection:
Wealth protection is all about safeguarding wealth against potential risks and uncertainties. We conduct thorough risk assessments, recommend appropriate insurance coverage, and develop contingency plans to help mitigate potential losses. Wealth protection may involve the creation of LLCs, trusts, or other entities as a layer of protection. Often, we seek to transfer the risk to an insurance company. By proactively managing risks and implementing protective measures, we provide affluent and High Net Worthy Individuals with clarity and the confidence to navigate through the challenges of life.

Charitable Giving:
Real wealth management integrates philanthropic goals into an individual's overall wealth management strategy. We may assist in creating charitable foundations, donor-advised funds, or other vehicles that enable High Net Worth Individuals to contribute to causes they care about while maximizing tax benefits. We guide effective grant-making strategies and impact investing opportunities. We seek to align charitable giving with a comprehensive wealth management plan. We strive to assist affluent and High Net Worthy Individuals to leave a lasting legacy and make a meaningful difference in the world.

Affluent and High Net Worth Individuals face a unique set of concerns that demand specialized attention. Real wealth management serves as a comprehensive solution to address these concerns effectively. By focusing on wealth preservation, wealth enhancement, wealth transfer, wealth protection, and charitable giving, we provide HNWIs with tailored strategies and guidance. Through careful planning, diligent monitoring, and continuous adjustments, as real wealth managers, we help the affluent and HNWIs pursue their objectives and protect their wealth for future generations.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. Franklin Financial Group and LPL Financial do not provide tax or legal advice or services.