Retirement is a major milestone in the life of every individual, and it is no different for high-net-worth individuals. If you’re one of these individuals, you may think that being comfortable means you can worry less about retirement planning. However, the opposite could be true. You may have unique retirement needs and considerations due to the wealth you have accumulated throughout your life. Let’s explore some of the key considerations that high-net-worth individuals should keep in mind when planning for their retirement.
One of the most important considerations for high-net-worth individuals when planning for retirement is the need to preserve their wealth. These individuals have typically spent decades building their wealth and want to ensure that it will last throughout their retirement years. In turn, they may want to work with financial advisors and other professionals to develop a retirement plan that focuses on wealth preservation by optimizing and maximizing their retirement accounts, addressing medical expenses, insurance, and more, rather than relying on Social Security or a select few supplemental investing accounts.
Another consideration for high-net-worth individuals in retirement planning is tax efficiency. These individuals may have accumulated a significant amount of wealth through investments, business ownership, or other means, which means they may have to pay a significant amount in taxes when they retire. It is essential for high-net-worth individuals to work with financial advisors and tax professionals to develop a retirement plan that minimizes tax liabilities while still providing sufficient income to support their lifestyle.
High-net-worth individuals may also consider estate planning as part of their retirement planning process. These individuals may have significant assets that they want to leave to their heirs or charitable organizations, and proper estate planning can help ensure that their wishes are carried out in the event of their death. Estate planning can also help high-net-worth individuals minimize tax liabilities and other legal issues that may arise when transferring assets to their heirs.
Another important consideration for high-net-worth individuals is asset allocation. These individuals may have a significant portion of their wealth tied up in illiquid assets such as real estate, business ownership, or private equity investments. So, they may consider developing a retirement plan that balances their illiquid assets with more liquid investments.
High-net-worth individuals may want to consider lifestyle considerations such as travel, hobbies, and charitable giving. These individuals may have the resources to pursue their interests and passions in retirement, and a well-developed retirement plan can help ensure that they have the financial resources to do so.
Even though high-net-worth individuals may have a lot, they have a lot more to lose as well. Because of how much they may have, it’s difficult to manage on their own too. By working with financial professionals, tax professionals, and estate planning attorneys, high-net-worth individuals can develop a retirement plan that addresses their wealth preservation, tax efficiency, estate planning, asset allocation, and lifestyle needs. With a well-developed retirement plan in place, high-net-worth individuals can enjoy their retirement years with confidence and peace of mind.
A financial professional can help you better understand financial literacy and can help you take the next step in securing your financial future with a comprehensive financial strategy. Contact us at (540) 720-5656 to get started with a financial professional.
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Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.