4 Key Differences Of Financial Planning For High Net Worth Individuals

4 Key Differences Of Financial Planning For High Net Worth Individuals

25 Aug 2022

High-net-worth individuals tend to lead productive lives with full plates at home and work. And you know that means—the more financial responsibilities, income, and assets you have, the more complex your financial life can be— which can create unique challenges and opportunities. 


The wonderful news is that high-net-worth financial planning in Akron-Canton, Ohio starts and ends with your financial goals at McGervey Wealth. We are a fee-only fiduciary firm with a full-cycle investment approach to wealth management.


Achieving and maintaining financial freedom while protecting your assets may feel overwhelming when dealing with large sums of money. That’s where we step in—a financial planner in Akron-Canton, OH, is here to help you expand your knowledge of the financial planning process for high-net-worth individuals, which hones in on:

  • Protecting assets of HNWIs
  • High-net-worth tax planning
  • High-net-worth estate planning
  • Investing for high-net-worth individuals

The financial planning process for high-net-worth individuals

There are many reasons why comprehensive financial planning for high-net-worth individuals (HNWIs) is more complex than for the average investor.

  1. HNWIs have more income and assets to protect than lower net worth investors. A comprehensive financial advisor in Akron-Canton, OH, should ensure strategic portfolio management based on your needs. At McGervey, we provide full-cycle investing.
  2. HNWIs have more complex estate planning issues to consider, including family trust arrangements, charitable giving, and business succession planning.
  3. HNWIs have complex tax issues requiring specialized advice from experienced tax planners who can adequately integrate their strategies into their overall financial plan versus using off-the-shelf software designed for ordinary investors or consumers.

1. Protecting your assets as a HNWI

stock ticker display on an office building

A comprehensive insurance protection plan is the best way to protect assets for high-net-worth individuals. This means you’ll want to ensure that your assets are protected from threats, including natural disasters, human error, market crashes, and more.

The optimal way to guard your assets is by ensuring they have been appropriately assessed and valued. If you don’t know the value of what you’re protecting, how can you be sure that you have enough coverage? Working with an investment advisor who has experience in working with HNWI and families is the best way to get started in comprehensive financial planning for proactive wealth management.

Another essential thing to consider when it comes to protecting assets for HNWIs is that you may need different insurance coverage than others. For example, if you possess more valuable jewelry than most, it would make sense to get jewelry insurance instead of just home or auto insurance.

You can consider having liability coverage in place if someone gets hurt on your property or on the job (if at your place of business).

Protecting your assets from creditors, lawsuits, and divorce is one of the most important aspects of wealth management. Your financial planner in Akron-Canton, Ohio, will help you determine which types of assets are best suited to protect your income and maximize your net worth. If you have an asset that has a high value, you can use this as collateral to borrow money. 

Bottom line: you must ensure that your assets are safe, secure, and accessible if needed.

2. High-net-worth income tax considerations

High-net-worth individuals are more likely to have complex investment strategies, which can increase their tax liability. In addition, they may be operating businesses and could be subject to special rules that apply only to them. Therefore, it is crucial for high-net income earners to consult a CERTIFIED FINANCIAL PLANNER™ Professional when implementing a tax strategy. 

This becomes even more vital as you near retirement, so you can take full advantage of all available deductions to help minimize your tax burden as much as possible.

3. Investing as a high-net-worth individual

Investing is one of the most critical aspects of financial planning, and it can be very different for high-net-worth individuals. For example, investment options are often limited to those not available to average investors. Because these individuals have more money at stake, they also have an increased need for diversification and risk management.

Some of the investment opportunities for high-net-worth individuals include:

  • Stocks and stock strategies
  • Bonds and bond ladders
  • Private placement funds
  • Commodities and Currency
  • Limited Partnerships and Private Equity

HNWIs need full cycle investing, especially during high inflation.

Instead of your typical asset allocation model, the team at McGervey takes a different approach by carefully monitoring domestic/global markets and economic environments. We are able to allocate your portfolio to the best asset classes and sectors depending on what kind of period we are in (growth or inflationary). We focus on your long-term financial success versus short-term performance. You can trust that we are following all market conditions closely, so you can focus more on what you love.

4. Passing wealth down to heirs through estate planning

High net worth family looking for financial advisor in canton ohio

Estate planning involves protecting your assets, preserving your wealth, and passing it down to your heirs. There are many aspects to estate planning:

  • Taxes: Your financial advisor in the Akron area can help you with this.
  • Beneficiary designations: You can designate beneficiaries for your bank accounts, retirement funds, and other assets so that they are distributed exactly as you want them if something happens to you.
  • Probate: If there is no will in place when someone dies, then the probate court will determine who gets what from their estate by law—regardless of what the deceased person wanted.
  • Trusts: Trusts allow for more complex situations where a beneficiary may not need or want everything that one owns at once (e.g., children might not need access to their inheritance until they reach age 25). A trust also allows for easier management of assets throughout one’s life than simply handing over money directly while still alive. It also avoids tax issues after death which would otherwise occur if all distributions were made before death (when taxes would be due).

At McGervey Wealth, we look forward to working with your legal counsel on estate planning matters. We can help you find an experienced, cost-effective estate planning attorney to implement your wishes. We can also assist with end-of-life planning so that your family is prepared for the unexpected and can enjoy your time together without worry—and you can sleep better at night.

How to find the right high-net-worth financial planner

To find the right high-net-worth financial planner in Akron-Canton for you, remember that a true HNW financial advisor specializes in clients with a net worth of $1 million or more. Many planners will focus on helping those who are still building their wealth and won’t have the experience you need when managing millions of dollars.

Invest in a long-term professional relationship with McGervey Wealth Management.

If you’re striving to obtain true financial independence, work with us to take your wealth management to the next level. In our experience, it’s vital to get expert advice from an experienced financial planner who works with HNWI. Be sure to invest in someone who is willing and able to fully understand your goals and implement a viable plan to help you achieve them by providing timely advice throughout the process. 

Reach out and schedule a meeting today!

McGervey Wealth Management eBook

More About the Author: E. Michael McGervey, CFP®, CRPC®

Mike is passionate and skilled at helping clients solve complex financial challenges. He’s known for his thoughtful communication, educational approach, and exceptional customized service. Mike has been a sought-after source for financial television, magazines, and newspapers looking for insightful analysis. His expertise has been featured by CNBC, FOX Business and...