A No-Nonsense Checklist for High-Net-Worth Individuals
A step-by-step framework to protect, grow and pass on your wealth across generations.
Building wealth is one thing — maintaining it is another. For high-net-worth individuals (HNWIs), financial success isn’t just about how much money you’ve accumulated; it’s about how strategically you manage it. Preserving wealth requires smart planning, from tax efficiency to investment diversification and estate planning.
There’s no universal definition of a high-net-worth individual, but according to the Corporate Finance Institute, HNWIs typically have at least $1 million in liquid assets, such as cash and investments.
Whether you’ve already secured your financial future or are fine-tuning your long-term strategy, this checklist will help you stay on track, protect your assets and ensure your wealth lasts for generations to come.
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1. Take stock of your wealth: Assess your assets
Do an audit of all your income to see how much money you have in every account. You should check:
- Cash and Liquid Assets: Checking accounts, savings accounts, CDs and money market funds.
- Retirement Accounts: Traditional and Roth IRAs, 401(k)s, pensions (if applicable) and other employer-sponsored plans.
- Investment Accounts: Brokerage accounts, mutual funds, stocks, bonds and alternative investments.
- Real Estate Holdings: Primary residence, vacation homes, rental properties and other real estate investments.
- Tangible Assets: Collectibles, fine art, precious metals and other valuable possessions.
- Insurance and Annuities: Life insurance policies, annuities and Health Savings Accounts (HSAs).
- Business Interests: Income from active or passive business ventures, as well as the valuation of any owned businesses.
Work closely with your financial adviser to assess the value of each asset and determine a strategy for maintaining liquidity and tax efficiency. A professional can also help you prioritize which accounts to draw from first to maximize your wealth over time.
For instance, Roth accounts allow tax-free withdrawals, so you may want to use those before you tap into Traditional IRAs or 401(k)s.
Even HNWIs should consider adding Social Security benefits into income calculations. While you may not claim Social Security benefits as early as some other folks, you might still want to include them in your income estimates.
Your adviser can help you figure out how much you’ll earn if you delay claiming benefits until turning 70.
2. Plan your spending: Estimate future expenses
Wealth isn’t just about accumulation, it’s about using it to create the life you want. Whether that means traveling the world, expanding your philanthropic impact or ensuring financial security for future generations, planning your expenses is key to sustaining your lifestyle.
Your spending habits may shift over time. Perhaps you’ll travel more, invest in passion projects or fund experiences that bring you fulfillment. Health-related costs may also become a larger consideration over time, even if you’re not reliant on a fixed income. Ensuring you have a plan for long-term care, insurance and medical expenses can help you maintain peace of mind.
Your financial legacy is another important factor. You might choose to increase charitable giving to align with your values and reduce tax liabilities or provide ongoing support to children or grandchildren.
Thoughtful planning allows you to enjoy your wealth while securing your impact for years to come. Estate planning should be a continuous process, not a one-time task.
Regularly update your wills, trusts, power of attorney and health directives to reflect your evolving goals. By aligning your financial plan with the lifestyle you envision, you can ensure that your wealth serves both you and the people or causes that matter most to you.
3. Secure your financial future: Smart strategies for lasting wealth
Wealth isn’t just about what you have — it’s about how you manage it for the future. Whether you're preparing for retirement, expanding your investments or securing your financial legacy, having a strategic plan in place is essential.
Start by reducing outstanding debt where possible. Paying down liabilities like mortgages, business loans or other large expenses can free up cash flow and provide greater financial flexibility.
If you own a business, consider how to structure or eliminate business debt to protect your personal assets.
Work with your financial adviser to develop a tax-efficient strategy for managing your income and withdrawals from investments. Minimizing tax liabilities allows you to retain more of your wealth while ensuring long-term financial stability.
Even as your financial priorities evolve, maintaining a structured spending plan helps you stay in control. Mapping out expenses — whether for lifestyle, philanthropy or legacy planning — ensures that your wealth continues to support the life you envision for yourself and future generations.
How to protect and grow your wealth for the future
Wealth isn’t just about earning, it’s about sustaining and growing what you’ve built. High-net-worth individuals must take a proactive approach to financial planning to ensure their wealth supports both their lifestyle and long-term goals.
From optimizing tax strategies to structuring investments wisely, the key to maintaining wealth is strategic decision-making.
By carefully managing your assets, planning for future expenses and ensuring your estate is in order, you can protect and even expand your wealth for generations to come. Staying rich isn’t just about how much you have — it’s about how well you manage it.
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