High Net Worth Financial Strategies

High-net-worth individuals may not have the same financial concerns as most people, but they do still have financial concerns. Finances are never simple, and the more money you have, the more complex they can become. That’s why there are certain strategies that high-net-worth individuals should keep in mind. These strategies apply to areas of finance that affect everyone—estate planning, taxes, preserving wealth over generations, and considering working with a professional. The difference for these individuals is that the strategies often require considering the implications of many more factors. Let’s dive into these high-net-worth financial strategies.

Estate Planning

For high-net-worth individuals, it’s never too early to start thinking about estate planning. More assets mean a larger estate, and therefore more to distribute. Estate planning for high-net-worth individuals requires far more than creating a will. This is because estate planning is often far more complex for these individuals.

A major financial concern for many high-net-worth individuals is estate taxes. These taxes decrease the amount left to loved ones and philanthropic causes. A way to minimize the effect of estate taxes is through trusts. Trusts can also minimize the potential expenses and stress of probate.

Another way to minimize the tax burden on your estate is to consider gifting money to loved ones. As of 2018, you can gift $15,000 without incurring a tax penalty. That means you can give up to $15,000 a year to each individual that you plan to leave money to. All gifted money is less of your estate that will incur estate taxes.


No one wants to pay more in taxes than necessary, but high-net-worth individuals often have less straightforward taxes. Different income streams, properties, and accounts all have different tax implications. There is no one-size-fits-all tax strategy for high-net-worth individuals. Instead, it’s about viewing each investment and your entire portfolio through the lens of taxes. This does not mean making decisions based exclusively on how they will affect your taxes—it means simply considering the tax implications of the decisions.

One especially important area for high-net-worth individuals to think about is how capital gains affect their taxes. Capital gains are taxable income, but their tax rates differ from other taxable income. There are many different tax strategies relating to capital gains, so you’ll likely need to work with a financial advisor to make sure you’re taking advantage of as many tax opportunities as possible. Reach out to a trusted financial advisor from Good Life Financial Advisors of Mt. Pleasant for assistance.

Preserving Wealth Over Generations

Amassing wealth is one thing, but keeping it is another. If you want your wealth to last over generations, you’ll need more than good estate planning. The key strategies for preserving wealth over generations are education, communication, and having a mission.


First, you’ll need to educate your children about financial responsibility. It’s natural to want to make your child’s life as simple as possible, but a lack of financial education will only hurt them in the long run.


While there’s no one way to teach financial responsibility, the most important thing is to make sure you’re consistently discussing finances and giving them age-appropriate chances to manage their own money. If you have adult children, clear communication is key. Have a family meeting to discuss your estate and answer any questions your children may have.


Finally, make sure your mission as a family is clear. What is the role of money in your family? What does your family hope to do with your money? How do you expect your children to handle their inheritance? You may think your family agrees to the answers to these questions, but many families are surprised when they sit down and have these discussions.

Work with a Professional

Managing large amounts of wealth requires a high level of expertise. There are often properties to oversee, investments to manage, philanthropic causes to keep up with, and more. Each area of your portfolio often requires oversight form someone with experience in that area. More money may mean more opportunities, but it also means more complicated finances.

Trust Good Life Financial Advisors of Mt. Pleasant

Unless you’re willing to make managing your wealth your full-time job, you’ll need to gather a team of professionals that can assist you with these high-net-worth-financial strategies. The team here at Good Life Financial Advisors of Mt. Pleasant takes a holistic perspective when it comes to managing your estate, and will help assure that every financial decision is working to support your long-term goals. Contact us today!


This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

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