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Financial Planning for High Net-Worth Individuals

Posted on November 30th, 2018

Wealth is one of the ultimate goals of the “American Dream.” But often, once a high enough level of wealth is achieved, it can become too complicated for many people to adequately manage.

“But with ten million dollars, I’d be set for life!” you say. However, a simple Google search for ‘lottery curse’ demonstrates a very different trend, wherein even those who win amounts in the billions end up destitute and miserable in a matter of years.

High net-worth individuals face more complex issues than the average Joe, from taxes to investments and everything in between. They are not always equipped to tackle these issues on their own. The best course of action for an affluent individual is to hire a professional financial planner to help manage their wealth before it becomes a necessity.

Know What You Can Afford

It’s easy to look at a bank statement, see a large number in front of a dollar sign, and say “Yeah, I’ve got enough for this house.”

To paraphrase Jeff Goldblum’s Jurassic Park character, Ian Malcolm, “You were so preoccupied with whether or not you could, you never stopped to think if you should.”

There is a difference between what you can buy and what you can afford, and a financial professional can help you understand that difference.

Save Big on Taxes

For most individuals, taxes are just a thing that they have to do once a year. Over a certain financial threshold, though, an entirely different game is at play.

The higher your net-worth, the more you are taxed on your income, and the more important it is for year-round tax planning strategies that protect your wealth using methods such as:

  • Deduction
  • Tax Credits
  • Retirement Planning
  • Charitable Donations
  • Trusts
  • Gifts

A knowledgeable financial professional can help ensure that you pay only the taxes you owe.

Identify Risks

Often, investments are used by the affluent to sustain or grow their wealth, as they have more investment options than most. However, this can be a volatile game to play. If you aren’t an expert when it comes to investing, it’s all too easy to get lured in by an exotic investment without analyzing the risks involved.

Protect Yourself and Your Future

Don’t let yourself fall victim to the “lottery curse.” Protect yourself and your wealth by investing in the services of a financial advisor before the need arises.

Logan & Associates is a financial firm with nearly 40 years of experience helping individuals in Highland Park plan for their future and manage their wealth. Contact our office today to schedule a consultation with our team of experts.


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