The McGowanGroup is a team of independent advisors who provide a wide variety of Wealth Management services to our clients. One of our specialties is retirement planning for High Net Worth Individuals (HNWI).
Careful, prudent retirement planning strategies can make the difference between being able to truly enjoy your “golden years,” or having to spend your retirement dealing with uncertainty and financial anxiety. Though it’s impossible to foresee everything that the future has in store, our team is available to help you turn your financial dreams into a reality!
“What is a High Net Worth Individual?”
Generally speaking, a High Net Worth Individual (HNWI) is a person who has at least $1 million in liquid assets. If a person has more than $5 million in investible assets, they’re referred to as a “Very HNWI,” and someone who has $30 million or more in investible assets is called an “Ultra HNWI.” People with less than $1 million but more than $100,000 are considered “Affluent” or “sub-HNWI.” Interestingly enough, over 298,220 HNWIs live in the city of Dallas alone!
“What are The Most Common Mistakes That HNWIs Make When Planning for Retirement?”
It’s a widespread misconception that those who have a large net worth don’t actually have to plan for retirement; they can simply do what they want, and the money will “take care of itself”. The glitz, glam, and affluence that the DFW area offers HNWIs can contribute to this idea, BUT there are some serious pitfalls that HNWIs need to be mindful of including:
- Not Securing Income-Producing Investments.
This is a byproduct of the idea that your money “will always be there”. Even if you’re no longer working, a steady cash flow can be a lifesaver if you or your spouse hit a financial roadblock. Adequate passive income may allow you to avoid having to liquidate assets.
- Underestimating How Many Years That They’ll be Retired.
We mean that some folks underestimate how long they’ll live after officially declaring themselves retired. Nobody likes to consider their own mortality, but it’s better to do so now than to find yourself celebrating your 95th birthday with precious little left to lean on.
- Not Discussing Finances with Heirs.
Most of us want to leave money behind for our children, grandchildren, nieces, nephews, etc., and after all, better for it to go to them than for it to go to the Government! Discussing your wishes for your wealth when you’re no longer around can be key to securing generational wealth instead of the assets being squandered, seized, or misused.
- Not Utilizing Tax-Efficient Investments.
Don’t let the Government tax more of your money than necessary! By keeping your investments varied including tax advantaged assets in mind, a good Wealth Management team can help you retain more of your assets in your own pocket as opposed to Uncle Sam’s!
“How Do Wealth Management Firms Help with Retirement Planning for HNWIs?”
Wealth Management groups provide a wide variety of services for HNWI clients, and that can include Retirement Planning. A Relationship Manager from a Wealth Management firm—like the McGowan Group—can assist in the following areas:
- Long-term Financial Planning.
- Portfolio Construction Specific to Individual Circumstances to Include Income Producing Investments.
- Estate Planning with a Trustee Bootcamp for Potential Heirs.
- Tax Strategy Planning.
- Quarterly Portfolio Reviews to Track Performance, Incorporate Adjustments for Life Changes and Coordination with Your Other Chosen Professionals to Ensure Financial Needs are Handled Seamlessly.
All these items are critical parts of consideration for High Net Worth Individuals. While these questions can sometimes seem confusing or difficult to the average investor, The Team That Cares is ready to serve!