Financial advisors are crucial in helping individuals manage their wealth and achieve their financial goals. High-net-worth investors, in particular, often have complex financial situations that require additional guidance.
Whether you’re planning for retirement, managing a windfall, or navigating other significant life events, a skilled financial advisor can provide valuable support. In this blog, we’ll explore some life events where a financial advisor can make a substantial difference for high-net-worth individuals. Here’s what you should know.
1. Retirement Planning
Retirement planning is one of the most important financial life events people need help with. Many variables are associated with planning and saving for retirement, and it can be difficult to plan for years. Things like inflation can certainly affect the amount you save and invest.
However, a financial advisor can help you calculate the funds needed to maintain your desired lifestyle during retirement. They can assist in optimizing your retirement savings accounts, such as 401(k)s and IRAs, and suggest tax-efficient withdrawal strategies.
Additionally, these professionals can help you develop a comprehensive investment strategy tailored to your risk tolerance. They can help guide diversification, asset allocation, and selecting investment vehicles that align with your objectives, such as stocks, bonds, real estate, or alternative investments.
2. Divorce
Life is full of unexpected twists and turns, and individuals with substantial wealth must have robust risk management strategies to protect their assets. Financial advisors can play a pivotal role in helping you establish an emergency fund and contingency plans. These plans help protect your financial well-being even in unforeseen events like divorce.
Having an emergency plan has become increasingly important, especially considering the changing dynamics of divorce in recent years. According to research published in the Journals of Gerontology, more than one in three people who divorce in the United States is older than 50. Researchers also predict that by 2030, the divorce rate for the gray divorce population will triple.
In this changing demographic landscape and evolving personal circumstances, a skilled financial advisor can provide the guidance and strategies needed to help you navigate the financial complexities of divorce while preserving your wealth and providing a secure financial future.
3. Estate Planning and Wealth Transfer
High-net-worth individuals often have substantial assets they wish to pass on to future generations or charitable causes. Estate planning can help minimize estate taxes and protect your family’s financial legacy. Yet, 2 out of 3 Americans do not have any type of estate planning document.
A financial advisor can help you create an effective estate plan, establish trusts, and explore strategies like gifting or charitable giving to optimize wealth transfer. Beyond the financial benefits, effective estate planning also brings peace of mind. Knowing that your affairs are well-organized and that your wishes will be carried out in the event of your passing offers a profound sense of security.
Planning for when you’re no longer here also offers peace of mind and helps facilitate a smooth and efficient transfer of wealth. Taking proactive steps to manage your estate and assets empowers you to leave a lasting impact that aligns with your values and secures your family’s financial future. It’s not just about protecting your wealth; it’s about preserving your legacy for generations.
4. Sudden Wealth
Receiving a significant windfall, whether from an inheritance, the sale of a business, or a large bonus, can be overwhelming. Typically, money that comes suddenly originates from a lawsuit, divorce, sale of a business, inheritance, lottery winnings, sports/entertainment contracts, retirement packages, or stock options.
Financial advisors can help you make informed decisions about handling these windfalls. They can create a plan to allocate the funds wisely, whether that involves investing or paying off debts. Moreover, financial advisors can provide emotional support and guidance during these transitions to help you avoid making impulsive financial decisions.
5. Starting a Business
If you are considering starting a business, tax planning strategies should be at the top of your list. As a new business owner, taking advantage of every tax deduction available is crucial. By working closely with a knowledgeable financial advisor, you can help identify and optimize beliefs specific to your business.
Some standard deductions include expenses related to business travel, office rent or mortgage payments, equipment purchases, marketing and advertising costs, employee salaries and benefits, and professional development expenses.
Furthermore, for small businesses, there’s the opportunity to leverage tax credits provided by the SECURE Act, potentially amounting to up to $5,000 per year for the initial three years of your business’s existence. Capitalizing on these tax benefits can bolster your business’s financial health and accelerate your retirement savings, providing a brighter financial future.
How a Financial Advisor Can Help
Are you looking to grow your wealth and secure your retirement? Consider utilizing the services of a Fiduciary financial advisor. A Fiduciary is a type of financial advisor who is legally bound to prioritize their client’s financial interests over their own, offering a higher level of trust and duty than a standard financial advisor.
At Johnson Wealth and Income Management, our dedicated team of Fiduciary advisors is here to assist you in navigating the intricacies of retirement planning and investment management. We help align with your long-term financial goals, simplifying the often complex realm of financial planning. Here are just a few of the areas in which we excel:
- Retirement Planning
- Estate Planning
- Investment Planning
- Money Management
- Insurance Options
- Tax Strategies
- Lifestyle Balance
Our seasoned Fiduciary advisors are committed to helping you maximize your retirement years. Our mission is to empower you with the knowledge and guidance to make informed financial decisions, ultimately leading to a more secure and fulfilling retirement.
Final Thoughts
High-net-worth investors face unique financial challenges and opportunities throughout their lives. A skilled financial advisor can make a difference in achieving your financial goals, managing wealth, and navigating significant life events.
Contact us today to schedule your complimentary retirement strategy session.
All written content on this site is for informational purposes only. Opinions expressed herein are solely those of Johnson Wealth & Income Management and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. Investing involves risk. There is always the potential of losing money when you invest in securities. Asset allocation, diversification and rebalancing do not ensure a profit or help protect against loss in declining markets. All information and ideas should be discussed in detail with your individual advisor prior to implementation. The presence of this website, and the material contained within, shall in no way be construed or interpreted as a solicitation or recommendation for the purchase or sale of any security or investment strategy. In addition, the presence of this website should not be interpreted as a solicitation for Investment Advisory Services to any residents of states where otherwise legally permitted to conduct business. Fee-based financial planning and Investment Advisory Services are offered by Sound Income Strategies, LLC, an SEC Registered Investment Advisory firm. Johnson Wealth & Income Management and Sound Income Strategies LLC are not associated entities. Johnson Wealth & Income Management is a franchisee of the Retirement Income Source. The Retirement Income Source and Sound Income Strategies LLC are associated entities. © 2023 Sound Income Strategies.
