Elite wealth planning was once very much restricted to the extremely affluent. An individual or family needed a substantial fortune to benefit from many of the legal strategies and financial products that can be provided through such planning. However, that situation is changing.
Nowadays, people who are not part of the 0.1 percent or even the one percent can employ many of the same solutions used by the super-rich who are worth $500 million or more. Elite wealth planning is more and more mainstream and becoming appropriate for some individuals and families way down the financial ladder.
Generally speaking, there are two groups with the potential to benefit from elite wealth planning: the exceptionally wealthy and those aspiring to exceptional wealth and most anyone facing a complex financial situation.
To be clear: Although elite wealth planning is being increasingly democratized, and some people can benefit from it in the same way as the super-rich, financial criteria and levels of complexity must be met to benefit from many of the solutions it provides.
Nevertheless, for an ever-expanding number of affluent individuals and families, the possibilities for mitigating taxes, for protecting wealth from malicious litigants, and for tax-efficient charitable giving have become more pronounced because elite wealth planning is more readily available.
All in all there is a pronounced and growing trend among high-net-worth families. Often more valuable to them than investment management alone is taking a more comprehensive approach that also includes elite wealth planning. Your ability to not only deliver high-quality investment management services but also elite wealth planning will more effectively position you to work with the wealthy and the ultra-wealthy.
Rick Flynn, managing partner of FFO and co-author of Elite Wealth Planning: Lessons from the Super Rich, said, “While a glut of professionals claims to be client-centered and use advanced approaches and techniques, a very large percentage of them are just not that adept. In contrast, elite wealth planners and their teams employ appropriate tools and methodologies including the most sophisticated solutions when they are suitable.”
As an elite wealth planner you are able to deliver substantial value to the wealthy. Moreover, it is the type of value the wealthy are seriously seeking. Being able to both deliver elite wealth planning and position yourself as an expert in the area will likely significantly increase your ability to cultivate more and wealthier clients.
By you and your team being proficient at investment management and elite wealth planning, the opportunities to source and provide considerable value to the wealthy multiply. For example, this more holistic approach, when adeptly communicated, is proven to be highly effective in generating considerably more high-net-worth client referrals. There are also ways—requiring some degree of cleverness—to use this more comprehensive approach to help create a steady stream of ultra-wealthy referrals from centers of influence.
In sum, elite wealth planning, combined with solid investment management, can translate into a substantially more successful advisory practice. Furthermore, and importantly, the wealthy clients will significantly benefit.