Financial Planning For High Net-Worth Individuals

On the surface, financial planning for high net-worth individuals might seem like a relatively straightforward process. After all, it can be reasoned, those who have had financial success are likely to follow the sound financial advice that an experienced, skilled financial professional can provide. While this is true to some degree, the reality is that financial planning for high net-worth individuals is a much more complex process, as any reputable New Jersey accounting firm offering such services understands. High net-worth individuals have unique financial planning needs; these needs are often related to the specific, unique goals that these individuals have when it comes to their financial strategy.


The particular needs and goals of high net-worth individuals mean that there are some particular challenges that financial planners face when providing various services to these clients. With experience, however, many financial planners come to be experts at providing specialized financial services for affluent individuals and families. Here is a look at some of the services that many financial planning and accounting firms offer high net-worth clients.


Gift & Estate Tax Services


Overall, the primary goal for most high net worth financial planners is wealth preservation. Not just wealth preservation, but wealth preservation that occurs through long-term, sustainable measures and practices. Many high net worth individuals make large financial gifts and are in possession of large estates. As a result, they are subject to significant gift and estate tax burdens that are not common to less affluent individuals and families.


A professional financial advisor that specializes in gift and estate tax can work to provide a comprehensive plan that preserves as much of an individual’s wealth as possible for current and future generations. Strategic transfer of assets can significantly minimize tax burdens and protect assets. Wealth transfer planning, especially as it relates to gift and estate taxes, is a significant portion of a financial plan for a high net worth individual.


Income Tax Services



Clifton NJ individual tax services


While those at all income levels can benefit from professional income tax preparation assistance, those with significant incomes and assets also have a lot at stake in the process. Rather than provide individual income tax services just once a year, financial planners often work with high-income earners throughout the year to assess their individual financial situation and adjust their financial strategies accordingly. Many high-income earners have considerable charitable goals that hinge on successfully minimizing income tax burdens.


Family Office Services


Many high net worth families utilize a financial services firm as the central hub of all of their financial activity. This provides the advantage of having their complex financial interests—from taxes to businesses to philanthropic and creative endeavors—all under one roof. Thus, it is easier for a financial professional to see the impact that one financial decision will have on an entire financial portfolio.


International Trust & Estate Services


The rise of globalization has seen more individuals than ever before with income and assets that exist in multiple different countries. Such cases require specialized cross-border tax planning services. Overall, each of the financial services available to high net worth individuals affects each other. A quality financial services firm will utilize a holistic approach in their strategy.


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