A Guide to High Net Worth Financial Planning

Camarda Wealth Advisory Group
Helpful Advice

Most of us dream of obtaining financial freedom. Not only would this virtually eliminate stress from our lives, but it also opens countless opportunities to explore hobbies and enjoy life to the fullest.

It’s no secret you’ll need to implement effective financial planning strategies when planning your future. However, high-net-worth financial planning is a bit more nuanced than conventional forms. With so much money across different assets and investments, managing your finances can quickly become overwhelming.

We’ve created a brief guide with key information on how to navigate this process appropriately. Let’s explore what you should know.

Establish Your Needs

Before moving forward, it’s essential to establish your needs. This will help you determine your goals and create an actionable plan.It will also help you make informed decisions about how you allocate your money. For example, your primary goal might be to grow your wealth to a certain point before adding it to a trust for your children.

You might also wish to grow your wealth as much as possible within the next decade. Regardless of your needs, clearly defining them will help you make better management decisions.

Diversify Your Assets

Diversification is one of the most important strategies for high-net-worth individuals. Since you’ll be allocating so much money to investments, there will also be a substantial amount of risk.

Without enough diversification, you risk losing a large amount of money in a short period. In some cases, this can even happen overnight.

This doesn’t mean you should only invest in different types of stocks, though. It’s essential to consider different asset classes. Some of the most common include stocks, bonds, and real estate.

Don’t Neglect Taxes

A common mistake high-net-worth individuals make is neglecting taxes. Dealing with the IRS can be a complicated and frustrating experience. Depending on how much you owe, the penalties they impose could cost you thousands of dollars.You could also face legal consequences if the IRS finds you guilty of committing tax fraud. It’s essential to work with a qualified tax professional to ensure you avoid making mistakes you would’ve otherwise made.You can also take advantage of tax breaks and incentives that you may have not been aware of. Many people overlook these opportunities and end up paying far more than they should. This is money you could contribute to your investments to further grow your net worth.

Prioritize Estate Planning

One of the most important responsibilities you have as a high-net-worth individual is estate planning. Without the right guidelines and procedures in place, you risk your assets being allocated incorrectly.This could make it difficult for your loved ones to receive what you intended to leave them. Assets are also subjected to special types of taxes, and these can easily cut into the value of your estate. The last thing you want is to undo your hard work by making poor decisions.This is also a great time to focus on testamentary trusts. These help establish what will occur if the trust settlor passes away.

Focus on Generational Wealth

When handled appropriately, your net worth can be used to create generational wealth that helps your loved ones maintain a high quality of life. As previously mentioned, transferring wealth to other individuals isn’t always a straightforward process.It requires careful planning and plenty of foresight to get the best results. Focusing on this ambition will allow you to take the right steps to maximize your overall wealth.

Plan For Business Succession

Many people with a high net worth are business owners. It’s imperative to have a plan in place for what will occur after you no longer run your company. Those with children typically choose them as their successors.However, you can’t expect things to run smoothly simply because you plan to keep your company in the family. It’s essential to ensure they understand their roles and responsibilities before moving forward. You’ll also need to transfer ownership of your company in a specific way to minimize taxes.Keeping your business in the family is also a great way to create generational wealth. There are plenty of family-owned companies that have been around for decades and passed down to the next generation.

Work with a Specialized Professional

It’s imperative to hire a financial professional who specializes in working with people like you. Otherwise, they might not understand the key details of your situation. Before you make your decision, research their past reputation.See what other people have to say in online reviews about the results they got from working with them. This will provide valuable insight into what you can expect.Look into their pricing structure, as well. The amount you’ll pay will vary considerably depending on who you work with.The last thing you want is to choose a professional who charges far more than they should. However, this doesn’t mean you should hire the cheapest professionals.Rock-bottom prices could indicate that they don’t have the experience to reach your goals. How communicative are they? There are few things worse than getting left in the dark after you hire someone.

Their level of industry experience will also play a large role in your results. It’s in your best interest to find someone who’s been in the industry for at least a decade.Don’t make the mistake of settling for someone who can’t meet your needs. It might take a few weeks or months to connect with a suitable advisor, but this is part of the process. With enough due diligence, you’ll find the right financial advisor for your situation.

Leverage High Net Worth Financial Planning

Without the right high-net-worth financial planning strategies in place, it can be difficult to achieve financial freedom. The information in this guide will help you realize your ambitions and create a brighter future.

Camarda Wealth Advisory Group offers comprehensive portfolio management and full-service financial planning. We proudly help our clients protect their assets, optimize their retirement goals, and plan their estates. You’ll learn more about the many benefits we provide when you book a consultation today.


Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Camarda Wealth Advisory Group -“CWAG”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from CWAG.  Please remember that if you are a CWAG client, it remains your responsibility to advise CWAG, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. CWAG is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of CWAG’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request. Please Note: CWAG does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to CWAG’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

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