Secure the right help. Wealth grows through proper investment. To maximise return on investment, high net worth individuals should hire a good asset manager or asset team that will focus on securing the best returns in the best possible way. Even with proper advisers in place, it’s important to constantly educate yourself on your investments and their progress so that you can be sure of the state of your finances.
Ensuring proper tax maintenance. High net worth individuals should give serious thought to smart estate planning such as the use of trusts and other off-shore investments to ensure that their money is properly managed. Trusts are one of the primary vehicles used for passing wealth from one generation to the next.
The trustee of a trust is responsible for productive asset investment, sound decisions on beneficiary distributions, protection of the trust, and timely, accurate completion of financial reports and tax returns. A properly managed trust can ensure that money is protected for future generations.
Family business matters… Among high net worth families that operate within family businesses, the topic of governance is an important one. While the concept of governance is widely understood in a business setting, it can be more complicated when family members are involved in the administration or profits of a business.
Successfully mixing personal matters with business ones can be challenging and governance provides the framework in which the roles, policies, processes, and controls needed to guide business decisions for the good of the business are made.
Give back. High net worth individuals often share their wealth with those less fortunate through philanthropic causes. Family leaders may view philanthropy as an important part of their legacy and as a way to teach their children about the responsibilities of managing family wealth and giving back.
Whether investing in an established cause or developing your own foundation, there are many options for engaging in philanthropy, depending on your goals and interests.
Shift wealth management focus
Think ahead. Wealth preservation for future generations is an important consideration for those that wish to see their children benefit from their hard work and for their wealth to not just grow, but be preserved as well.
These individuals should be sure to have an updated will in place. Documents such as a will or any other legal deeds should be drafted by a professional, kept in a safe place and always be up-to-date to ensure that, when required, the estate and its wealth can be easily and properly distributed.
Protect against risks
There are quite a few pitfalls when it comes to the wealth of high net worth individuals. Factors that could threaten your wealth include big debt at a high cost, risky entrepreneurial ventures, investments you don’t understand, law suits, divorce proceedings, and tax problems.