Being a good steward of your existing wealth requires diligence and foresight. It requires you to consider your current and future needs, as well as those of your spouse, your children, and any other family members or individuals who rely on you financially. It also requires you to surround yourself with an experienced team of wealth management advisors who can help you plan for financial changes, challenges, and opportunities.
Financial planning is a journey for everyone. However, once you've achieved a high net worth, your financial planning approach requires a more detailed touch. A myriad of details require your personalized attention, and knowledgeable financial advisors can help you navigate them.
First and foremost, you and your financial advisor should comprehensively assess your current financial situation, assets, and portfolio as a team, to make sure that your wealth is currently working and continues to work for you.
Your financial advisor should review your portfolio every quarter to make sure it is up to date and properly diluted. Any former 401(k)s with former employers should be transferred and consolidated into one account, all vested stock options should be handled and planned for, and your tax situation should be adequately prepared, so that that you are on pace for pursuing your future financial goals.
It's also important to consider that even if you can afford the best, you may not always need the very best. Think about applying this mindset to all areas of your life, from homes, cars, and belongings, to individual and family policies. For example, in the case of insurance premiums, you and your financial advisor should determine what is adequate for you and your family. Make sure you avoid being persuaded into overspending for extreme coverage by smooth-talking salespeople.
Another part of high net worth financial planning includes charitable giving. You want to contribute to projects, programs, and organizations that are a natural fit with your passions, while also knowing that your contributions are making a difference and are in line with your financial plans. For a cause that you are particularly interested, you and your financial advisors should discuss the pros and cons of starting a foundation or an endowment.
There are many considerations for proper wealth management at all stages and all net worths. At Hapanowicz & Associates, we can help you set and pursue your financial plans and future goals. If you have any questions, concerns, or need information or advice regarding your high net worth financial planning, feel free to reach out to any member of our team at Hapanowicz & Associates.
You can also reach out to me directly at bcarter@hapanowicz-associates.com.
