Financial Planning Services for High Net Worth Individuals

If you’re a high net worth individual, you have the assets in place to facilitate a comfortable retirement. At the same time, there are plenty of potential pitfalls and you will face additional challenges that the average person doesn’t encounter.

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You may have high aspirations including your own comfort, your loved ones, and possibly charitable giving. Whatever the case may be, it is critical to find a trusted partner to help you manage the assets you have worked so hard to accumulate. A big part of that is putting the right people in place.


Looking for an Advisor (who works with high net worth clients)

A top-notch financial advisor is worth his or her weight in gold if you are a high net worth individual. Someone who is knowledgeable, credentialed, and perhaps most importantly, trustworthy, can help you achieve your financial goals.

You want to ensure that your advisor is compensated in a way that aligns your best interest with theirs, which is why you should consider working with a fee-only advisor

This is in contrast to a fee-based financial advisor. A fee-based advisor is paid by their clients, but may also derive commissions from financial products that their clients purchase. There is the constant potential for a conflict of interest, and you may find yourself skeptical as to whether the products they are recommending are in your best interest.

At Financial Freedom Fee-Only Wealth Management we use a retainer-based fee-only model. What does this mean for you?

  1. We are not paid based on a percentage of your assets
  2. We are not compensated by 3rd parties (Commissions). The only form of any compensation that we receive comes directly from you.
  3. We provide objective, independent advice

We are your strongest financial advocates. Our retainer-fee agreements are developed after getting to know your wealth management objectives and how we will work together. As a fee-only firm, you can be confident that we always have your best interests in mind. 

Working with a fee-only advisor, such as Financial Freedom Fee-Only Wealth Management, can offer high net worth investors the following:

  1. Transparency and thorough performance reviews
  2. Exceptionally high level of service
  3. Responsiveness
  4. Expense control
  5. Dedication to your long term goals

We help high net worth clients with their comprehensive financial plans, investment management, and retirement planning.


Comprehensive Financial Planning

We believe that a comprehensive financial plan is the map that sets the course for your financial goals. At Financial Freedom Fee-Only Wealth Management we take the time to find out what is really important to you. We then create a plan designed to build and maintain your wealth. 

We focus on your specific financial dreams and help with putting together a plan to execute them. Many firms use "off the shelf" programs to create their financial plans. We do not. Each comprehensive financial plan is uniquely tailored to your individual goals and needs. 

There are many components to a comprehensive financial plan, some of which include: retirement planning, retirement distribution, estate planning, and tax planning. We work with a group of professionals: attorneys, estate planning attorneys, CPA's, long term care specialists, and insurance professionals to ensure that your comprehensive plan is truly comprehensive. 


Investment Management

Your portfolio’s allocation is a very personalized decision. Your risk tolerance, desired rate of returns, and time horizon all play prominent roles in this decision. Whether your main goal is continued wealth accumulation or asset preservation, at Financial Freedom we can assist you in putting together an individualized plan.

We use a mix of bond and stock mutual funds, exchange-traded funds, index funds, and individual investments within our three-level approach to investment management: Strategic asset allocation, diversification, and investment selection.

We start with the development of an appropriate and comfortable asset allocation. This identifies your amount of equities (stocks), fixed income (bonds), and cash. This is based on your risk tolerance and overall comfort level.

Your assets would be rebalanced, as needed, as you get older and asset classes inevitably diverge in performance.


Plans for Retirement

Some people can manage to live on 75% of their current income in retirement. Others plan to spend as much or more in their golden years than they did while working. In either of these cases, you want to make sure you are prepared and err on the side of caution with estimates on what you will need.

Two of the more common 'rules of thumb' when calculating your required retirement income are 'multiply by 25' and 'the rule of 4'. Of course, every situation and every client is unique. Risk tolerances, specific financial goals, pension, Social Security, and other investments such as real estate can factor into a calculation.

But it’s a good starting point to see if you are in the right ballpark. For example, if your desired retirement income is $300,000 per year and you have $4 million in stocks and bonds, with no other major sources of retirement income, you would be at serious risk of running out of money. ($300,000 x 25=$7,500,000)  or ($4,000,000 x 4%=$160,000)

While 'rules of thumbs' are helpful, given the importance of a successful retirement outcome, we believe that more detailed and sophisticated planning using Monte Carlo simulation and other retirement income strategies is critical, particularly for high net worth individuals.


The Final Word

As a high net worth individual, you are starting from a position of strength when it comes to retirement planning. But properly deploying your resources and understanding areas of risk are crucial to reaching your financial goals – for yourself and your heirs.

Decisions about how to manage your finances as a high net worth individual can be complex. At Financial Freedom Fee-Only Wealth Management, we understand what’s truly important to our clients and construct comprehensive wealth management plans that will help guide them toward financial security and independence.  Contact us today for a complimentary consultation.

Financial Freedom, LLC. eBook 2020

Filed Under: Comprehensive Financial Planning, retirement planning