High net worth individuals and families require specialized wealth management services tailored to their unique needs. Get to know the wealth managers specializing in serving high net worth (HNW), very high net worth (VHNW), and ultra high net worth (UHNW) clients, and who can help you enjoy life with less money stress.

Whether you have billions, millions, or even hundreds of thousands of dollars to your name, wealth gives you status, security, freedom, and the ability to give back – among a multitude of other benefits.

However, to paraphrase a popular truism, having too much of anything has its downsides. And when it comes to money, one of the greatest challenges individuals and families with a high net worth must confront is how to manage their wealth effectively.

Do it right, and that hard-earned fortune will benefit multiple generations. Fail, though, and it’s a matter of time before it begins to dwindle.

That’s why we’ve put together this guide to high-net-worth wealth management. Read on for key definitions, further details on why it matters, and how wealth management differs for people with high net worth.

Before hiring a wealth manager who specializes in serving high net worth individuals and families, it’s important to first consider your unique financial planning priorities. In this guide, we’ll share tips to help you get started in your search and introduce you to wealth managers and high net worth financial advisors featured on Wealthtender who you may want to add to your shortlist.

What Is a High Net Worth Individual (HNWI)?

While there’s no actual legal definition, in financial circles, a high net worth individual (HNWI) is someone who owns at least $1 million of liquid assets. In other words, if you have relatively easy access to a million dollars in cash (e.g., if the money’s kept in a brokerage or bank account), then you’d be considered HNW by a financial advisor.

For clarity, someone wouldn’t fall into this category just because their primary residence is valued at $1 million or they have collectibles worth that amount of money. Liquidity is key – the only million-dollar assets that count toward your HNW claim are those that can be quickly converted to cash.

Interestingly, a 2021 study by Spectrem Group found that 11.6 million American households fit this description – an increase of 600,000 from the year before.

As an aside, being an HNWI isn’t the pinnacle of wealth accumulation. Above it, there are “very high net worth” (VHNW) and “ultra-high net worth” (UHNW) individuals. These are people who have at least $5 million and $30 million in liquid assets, respectively.

What Is High Net Worth Wealth Management?

Wealth management is a comprehensive, high-level financial service that helps affluent individuals with everything from investment advice and retirement planning to debt management and estate planning. It’s carried out by specialist financial advisors, often operating under the title of “wealth manager”.

The nuts and bolts of a wealth manager’s job depend on each client’s individual needs. However, the goal is always the same: to increase their wealth, minimize their exposure to unwanted financial risks, and protect their assets.

Okay, but what about high-net-worth wealth management?

The end goal doesn’t change, but these wealth managers are working with clients who fall into the $1 to $5 million bracket of liquid assets instead. The nature of the work is different too. With more money on the line, growing, maintaining, and protecting the fortunes of HNWIs is more of a challenge.

This has numerous implications, including the need for personalized wealth management solutions and separately managed investment accounts – perks to which less wealthy investors don’t have access. You’ll find more information about the differences between standard and HNW wealth management in later sections though. For now, here’s why it’s so worthwhile…

Why Is HNW Wealth Management Important?

Ultimately, the reason to access high net worth wealth management comes down to this: being rich now doesn’t guarantee you’ll still be rich in the future.

Look no further than the lottery winners who squander their millions for proof.

Likewise, consider the famous case of renowned rapper Curtis Jackson (better known as 50 Cent), who went from being worth $155 million to bankrupt in the space of a few years. And even the 18^th US President and renowned Civil War General Ulysses S. Grant went broke after leaving the White House.

The lesson is simple. Just like in business, if your fortune isn’t growing, it’s dwindling.

So if you’re an HNWI and want to avoid this fate – and lack the time, inclination, and/or know-how to do it yourself – it makes sense to seek professional advice that helps protect your assets and increases your net worth every year.

Key Elements of High Net Worth (HNW) Wealth Management

As we noted earlier, certain aspects of HNW wealth management differ from standard financial services of this nature. After all, there’s more to protect, as well as potential issues that don’t impact those with less personal wealth. Here are a few areas where HNW wealth management is of particular importance:

1. Tax Planning

As a high-income earner, you’ll likely have to pay higher income tax rates. But there’s no point handing more to Uncle Sam than you’re obliged to.

A key part of wise investing, tax planning for HNW individuals is a core financial service that’ll help you maximize deductions, leverage tax-loss-harvesting, and take advantage of other techniques to minimize your annual tax bill. Done right, you’ll hold onto a bigger slice of your wealth over time and thus maximize what you can leave to your loved ones in your estate plan. And that leads us nicely to our next point…

2. Estate Planning

Everyone should take steps to get their affairs in order before they die. Once again, though, this is particularly valuable for HNWIs because they’re likely to have sizeable estates to bequeath their friends, family, and favored charities.

A private wealth manager will a) prevent you from making expensive mistakes throughout the estate planning process and b) help you do everything necessary to ensure your assets get divided up in line with your wishes and that the process is as easy (and as lucrative) as possible for your heirs.

3. Succession Planning

For HNWIs who generated their fortune through a family business, succession planning makes sure the right people are available to fill leadership positions that open up in the company.

Some wealth managers will help you identify those critical roles, highlight potential vacancies, select the key skills/competencies that’d promote business continuity, and implement an action plan to upskill individuals so they can assume those roles as/when they open. Ultimately, this puts the business in a much stronger position and helps ensure its long-term financial success for you and your family.

Find a Knowledgeable High Net Worth Wealth Manager

Having more money doesn’t mean you’ll have fewer financial problems. In fact, it often opens the door to a unique set of issues! And one particular challenge that plagues the world’s wealthiest people relates to managing their money effectively.

That’s where high net worth wealth management comes into play. With the right guidance, you can invest in sensible places and take action that mitigates financial risk, leading to less stress and a fortune that keeps on growing.

Smart Tips for Finding a Wealth Manager for High Net Worth Individuals and Families

Before hiring a wealth manager, here are a few quick tips to help you find the best advisor for you.

Get to Know High Net Worth Wealth Managers

📍 Click on a pin in the map view below for a preview of high net worth wealth managers and financial advisors who can help you reach your money goals with a personalized plan. Or choose the grid view to search our directory of wealth managers with additional filtering options.

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