In our opinion, “High Net Worth” is not defined by a number, but a shift in financial concerns. With this in mind, The Financial Freedom Framework emphasizes each pillar slightly differently to accommodate.
Planning for long-term income or healthcare may not be a looming concern for a High Net Worth individual, as the wealth to provide for oneself in these areas is typically more than sufficient. As a High Net Worth Individual your Investment Plan, Tax Plan and Legacy Plan come largely into focus. Ensuring your assets are preserved for future generations, investing for risk mitigation, tax diversification and long-term growth combined with a proactive tax and charitable giving strategy can maximize your impact and ensure your Legacy.
Intentionally position your passive, investment, and active income streams in a way that increases efficiency, reduces taxes, and maintains your freedom. When you know where your income is coming from and how much you can position to enjoy while still fulfilling your savings, investment, and philanthropic goals, you have the freedom to fully enjoy your purchases.
Smart and tax-efficient investment decisions combined with strategic investment selection will help your wealth to be positioned for the largest impact. High Net Worth investors often have opportunities to participate in investments that may be closed to the masses. This allows for greater diversification and tax control. Whether it be for yourself or your successors, making suitable investment decisions now will allow your wealth and legacy to continue growing efficiently and passively, allowing you to enjoy more of your time in the present.
Your Tax Plan is one of the more important aspects of High-Net-Worth Wealth Management and often the most challenging and opportunistic. The goal of your tax plan is simply to minimize your tax liabilities and maximize your wealth through a proactive and holistic tax approach toward investing, charitable giving, asset positioning and wealth transfer.
Your healthcare plan will seek to minimize the effect of declining health on those around you in a way that allows you to maintain your dignity and choices. Navigating Medicare, planning for the liquidity needed to facilitate possible in-home health care, long-term care and/or assisted living needs, pre-determined healthcare decisions, and final expense planning are key aspects to creating a Healthcare Plan that will allow you to age with independence, grace and dignity.
Legacy Planning for the High-Net-Worth individual is a conscious process of determining how your wealth will carry on beyond you. From our perspective, your legacy is not just about your assets. Proactively considering your legacy may change how you spend your assets during life as you facilitate family experiences, travel the world, and participate charitably. Considering family dynamics, charitable giving, asset ownership and taxes, in collaboration with advice from your estate planning attorney, can produce a Legacy Plan that will minimize the taxable nature of your estate, facilitate efficiency and privacy in your estate distribution, and most importantly, ensure your wishes will be carried out.
Elevant Wealth and LPL Financial do not provide legal advice or tax services. Please consult your legal or tax advisor regarding your specific situation.