Mythology Of The Very Rich

Myth #5: Pentamillionaires Are All Set With Estate Plans
One might assume pentamillionaires don't need estate planning help because 85% say they already have a plan in place.  However, as Figure #2 shows, a major portion of these plans were established more than five years ago. Many of these plans will need to be reviewed and possibly revised because of the ongoing debate over estate tax reform.

We also see evidence of procrastination.  Forty-two percent of people with net worth of $3 million or more-a group that will face issues under most estate tax reform scenarios-say they have delayed estate planning due to the tax law debate in Congress.  Yet 62% of pentamillionaires say estate planning is "much more" or "more important" than in the past.

What Does This All Mean? 
Advisors who want to succeed in the pentamillionaire market must understand that the world of the wealthy in this country has changed. Stereotypes about when and how significant wealth is created aren't valid anymore.  Those who fail to recognize the realities of today's pentamillionaires will miss plenty of planning and sales opportunities.

Advisors will also need to present new solutions to their most wealthy clients to adapt to the changing economic and tax environment. For example, what if market volatility continues for the long term? What implications does this have for the financial plans and products that are already in place? Estate tax law changes are another example of an area that needs to be revisited by advisors.

Working in today's market is more like navigating a raging river than a sedate pond. The good news for advisors is that this segment of the market is favorably disposed to working with them and hearing about new solutions to their changing financial needs and concerns.