6 Wealth Management Services Every High-Net-Worth (HNW) Individual Should Consider

Wealth management for high-net-worth (HNW) individuals is a fundamental concern for the wealthy. With proper management, they get to see their investments growing, save up for a luxury retirement, and hand down a huge legacy of fortune to their younger generations.

What Is Wealth Management?

Wealth management is more than just a personalized investment advisory service. It encompasses all aspects of a high-net-worth (HNW) individual’s assets and lifestyle. It looks at his overall financial situation, takes steps to reduce taxes, maximize his riches, and safeguard the individual’s interest down the line.

How Does it Work?

Wealth management provides clients with guidance and options related to investing, estate planning, insurance, accounting, and more. A wealth manager formulates a strategic plan for a client’s current and future financial management needs. 

A wealth manager’s job also includes income generation based on the client’s investments, management and reduction of taxes, and protection of assets – taking into consideration the client’s risk tolerance. 

Most wealth managers earn through a certain percentage (at least 1% initially) of the assets they manage. Some get paid hourly.

Wealth Management Services for High-Net-Worth (HNW) Individuals

As the rich get richer, they experience an ever-expanding list of wealth management services that narrow their list of existing and potential advisors. The only problem is that most high-net-worth (HNW) individuals and their family offices have no clue about what they be looking for. That said, here are six wealth management services every high-net-worth (HNW) individual should consider.

1. Investment management services

Ultra-high net worth (UHNW) and high-net-worth (HNW) clients have at least 50% of their assets in alternative investments. These tangible assets and commodities tend to hold their value regardless of market fluctuations, which makes them scarce and hard to obtain by most people.

 A substantial amount of personal investment is required, and the capability of the investor to keep the asset for an extended time. These alternative investments also provide a fair investment return and are low-risk, which all affluent investors appreciate.

An alternative investment refers to a financial asset that does not belong to the conventional cash/equity/income/ categories. Tangible assets like private equity or venture capital, real estate investment trusts, hedge funds, as well as rare coins, precious metals, art collection, even vintage wine. 

2. Retirement planning services

Contrary to popular belief, even the wealthy UHNW and HNW individuals also have misgivings about their retirement. Those who work with a wealth management advisor create a written plan to manage their assets.

 The biggest concern for well-off retirees isn’t about

running out of money in retirement, but facing an unknown medical or any unforeseen emergency. 

A debt-free, stable, and guaranteed flow of retirement income (pension, annuities, social security, etc.), is always a winning formula for a comfortable retirement. 

3. Legal and estate planning

Estate planning for HNW individuals can get complicated, especially for these people with more assets than the average person. 

Estate planning involves having a well-thought-out legal document with detailed instructions about how you want your assets distributed to your heirs upon your death. 

Your will may include anything from bank accounts, real estate, jewelry, dividends from alternative investments, and more. You can also include your powers of attorney for financial and health care matters.

Estate planning provides you the knowledge that you’d still have full control over your assets even after your death. Without an estate plan in place, the probate court will have your possessions. You have no authority to determine who receives your assets.  

Your wealth management team should be smart enough to avoid Probate – due to the expenses and time that will be required of your heirs while waiting for court decisions, legal paper works, and court fees, 

 An estate plan allows the smooth transition of your assets in less time. And enables you to decide how your finances and health concerns will be addressed when you die.

It may be a bit unsettling and morbid to even talk about estate planning. But this will protect your minor children and will ensure that your last wishes and preferences about your end-of-life decisions are met.

4. Accounting and tax services

Wealth managers should be able to implement tax strategies and careful tax planning for their high-net-worth clients. Although this can be challenging due to the intricacy of their monetary affairs.

Lifetime Gift Tax

For this year, the lifetime gift tax exemption is $11.7 million, which means that HNW individuals can give up to $11.7 million in gifts in their lifetime without paying gift tax.

For couples, both spouses get the $11.7 million exemption – which means that if you’re married and have that massive amount of money to give away, you and your spouse can give a total of $23.4 million before the IRS hunts you down for not paying the gift tax.

However, the lifetime gift tax exemption, due to the changes in federal law, will soon shrink. The exemption will drop to a low $6 million by 2026.

Tax-loss harvesting

You can sell off stagnant investments to offset capital gains. Tax-loss harvesting will help reduce your tax bill

5. Charitable giving plan

Giving to charity is an attractive tax shelter for HNW individuals who want to do something good while getting a tax break.

Cash donations can be written off on your income tax return. As long as it’s an IRS-approved charity. Certain restrictions apply, though. You can discuss this with your wealth managers.

Cash donations for a good cause are a nice way to reduce the amount of money you pay to Uncle Sam.

6. Insurance services

An HNW individual often doesn’t get covered by insurance policies. Because standard insurers can’t afford to have an HNW person covered, his wealth managers must find a high-net-worth insurance that’s suitable for him.

HNW insurance is designed to cover individuals with high-value residences, real estate properties, and other belongings – such as jewelry, antiques, overseas property, and rare collectibles. It also applies to people who regularly travel, whether for personal, business, or other reasons.

What Are the Benefits of Wealth Management for HNW Individuals?

With wealth comes great responsibility, and while some may consider it a power, for others it can feel like a burden. Wealth management is the best solution for high-net-worth individuals that wish to ensure they can provide and maintain security, comfort, and luxury for themselves and their families. There are many benefits to hiring a wealth manager. Here are they:

Helps create a financial plan

Wealth management services help HNW investors to establish their corpus. Wealth managers are armed with skills that help them understand a client’s requirements and financial goals, which are taken into consideration when formulating financial strategies. Your wealth manager will enable you to understand your needs and guide you to fulfill your financial objectives.

Helps eliminate your financial stress

Wealth advisors are experts in their field and should help you make critical financial decisions, should you be compelled to make one. They assist to oversee your finances in times of rough market conditions.

Personalized services

Wealth managers know there’s no “one size fits all” approach when it comes to wealth management. Thus, every client gets personalized service. He also serves as your financial consultant and confidante.

Relationship-based approach

Wealth managers use this relationship-based approach so you two can have a robust exchange of ideas and formulate various financial strategies based on your goals, preferences, and lifestyle.


HNW individuals or their families, in general, can handle the financial blow from anything not covered by any insurance. Knowing this, some of them rest easy in believing that because they’re rich, they’re well prepared for the unknown. No amount of money can ever prepare someone for the inevitable. Even these HNW individuals.