Tremendous resources are being deployed to increase healthspan. Anti-aging trends have gone mainstream. Many wealthy in their 50s and older seek ways to extend their lives. Some of their ideas are currently science fiction, such as downloading their consciousness onto the Internet or freezing their bodies until new ones can be grown. Meanwhile, medical science is making great strides in developing preventative and treatment approaches, enabling people to live longer and healthier lives.
Wealth management comes into play in two ways. One way is to ensure people can pay for the latest healthcare solutions, and two, to ensure they have the money they need to live their lives to the fullest as they live longer.
“Cutting-edge treatments can sometimes be expensive with insurance not covering the costs,” says Daniel Carlin, founder and CEO of WorldClinic, one of the world’s leading concierge medical practices. “Unless the patients can pay out-of-pocket, these treatments are unavailable. We’re seeing more families thinking through their options and working with professionals to manage their finances to ensure they receive the best medical care, including preventative care possible.”
Consider a family worth more than $40 million. The complication is that the money is tied up in their family business. Now, a family member requires state-of-the-art treatments only available in a foreign country. And, if the treatments go well, there will be substantial rehabilitation costs.
In situations like this, being forewarned because of genomic testing can be instrumental in preserving the family business and ensuring the loved one gets the best medical care possible. The costs of testing and potential treatments often fall to the family. Leading wealth managers are increasingly building financial contingencies to address client healthcare issues and concerns.
According to Homer Smith, girector of Integrated Family Office and co-author of Making Smart Decisions: How Ultra-Wealthy Families Get Superior Wealth Planning Results, “With medical costs likely to continue to rise as people age, working against many people requires the funds to ensure a long-lived life. Astute wealth planning can be instrumental for families to have the money to pay for state-of-the-art care and have money to live the life of their choosing. A potential solution, used by single-family offices but increasingly available to less affluent families, is to manage financial assets in a way that considers much longer lifespans. One way is by creating a rainy-day fund as part of an estate plan. The investments grow completely tax-free now and in the future. If money is needed for medical care, it’s available. If not, the money passes down the generations.”
As longevity concerns magnify, the need for wealth management focused on family longevity becomes more critical. Wealth managers who develop a deep understanding of their clients, including current and possible health issues, can create solutions essential to promoting and supporting long healthspans.
Russ Alan Prince is the executive director of Private Wealth and a strategist for family offices and the ultra-wealthy. He has co-authored 70 books in the field, including Making Smart Decisions: How Ultra-Wealthy Families Get Superior Wealth Planning Results.