High Net Worth Financial Planning: What it Is and Tips to Do It Right

Financial planning can seem daunting, especially if you’re a high-net-worth individual (HNWI). When you have significant assets to manage, you have more at stake and face unique challenges. That can make high net worth estate planning, high net worth tax planning, and similar tasks especially complex.

However, some strategies and approaches can help make high net worth financial planning easier.

In this article, we’ll share:

• Facts about HNWIs and UHNWIs (ultra-high-net-worth individuals)
• Ten financial planning tips for high-net-worth individuals and ultra-high-net-worth individuals
• Seven financial planning tips for ultra-high-net-worth individuals

Ready to learn more about high-net-worth strategies for wealth management and financial planning? Let’s go!

Who are HNWIs and UHNWIs?

There is no uniform definition or legal criteria for qualifying as a high-net-worth individual or ultra-high-net-worth individual. Generally speaking, though, high-net-worth individuals are considered people who have investable assets of at least $1 million. Investable assets include cash and investments but exclude primary residences and collectibles.

Ultra-high net worth individuals (UHNWIs) are — again, generally speaking — those with investable assets of at least $30 million, as Investopedia points out. Keep in mind that all UHNWIs are also HNWIs, but the opposite isn’t true.

UHNWIs typically have significant wealth allocated across numerous assets. Examples include property, corporations, stocks, and bonds. Their exceptionally high level of wealth means they tend to have diversified portfolios and a wide range of holdings.

Their wealth provides them access to unique opportunities and, consequently, risks. That’s why it’s so important to work with an advisor who has experience helping high-net-worth and ultra-high-net-worth individuals. High-net-worth and ultra-high-net worth wealth management and financial planning are specifically geared toward these unique opportunities and risks.

Facts about HNWIs

• About 18%, or slightly less than 1 in 5 US households, have a net worth of at least $1 million, according to Federal Reserve data shared by USA Today.
• Among people approaching retirement age – ages 50-64 – that percentage jumps to slightly more than 25%.

Facts about UHNWIs

• As of mid-2025, there were an estimated 250,000 UHNWIs across the globe, a 9.4% increase year-over-year, according to the Capgemini World Wealth Report 2026.
• At the end of June 2025, the global HNWI population reached approximately 41.3 million individuals, each holding wealth above $1 million, according to Altrata’s World Ultra Wealth Report from 2025. While the definition of an HNWI and UHNWI may seem straightforward, there is a lot of diversity within these groups.

Both have a significant amount of wealth. They both also typically have a high degree of financial literacy and enjoy access to sophisticated investment products. This influences everything from short-term financial planning to long-term retirement planning for high-net-worth individuals.

Careful asset protection and organized financial planning are priorities for HNWIs seeking long-term stability.

Wealth planning for high net worth individuals often begins with understanding which category an investor falls into, because the planning strategies differ considerably between HNWIs and UHNWIs.

10 Financial Planning Tips for High-Net-Worth Individuals (HNWIs)

Financial planning is essential for high-net-worth individuals to actively work toward managing and growing their wealth over time. There are a few key considerations for HNWIs regarding financial planning.

• Create a Plan. HNWIs should create a comprehensive financial plan that considers their goals, risk tolerance, and investment portfolio. A structured plan may support informed financial decisions, though results vary based on individual circumstances. High-net-worth financial planning can be uniquely valuable in this context, as it focuses on the unique needs, risks, and goals of people in this wealth bracket.
• Diversification¹. How do high-net-worth individuals invest? It often makes sense to diversify investments. Diversification means investing in various asset classes, such as stocks, bonds, and real estate. By diversifying their investments, HNWIs can help manage the risks associated with any particular asset class.
• Create Clear Goals. HNWIs should clearly understand their financial goals. What are they looking to achieve? Do they want to grow their wealth over time or generate income from their investments? Once they have a clear understanding of their goals, they can develop an investment plan to help them achieve them.
• Tax Planning. HNWIs need to be aware of the tax implications of their investment decisions. In many cases, HNWIs can manage their tax liability by investing in certain types of assets or making specific — and timely — financial maneuvers. Working with qualified tax and financial advisors may help identify applicable tax planning opportunities. Tax planning involves considerations that may vary based on your individual circumstances. Consult a qualified tax professional for guidance specific to your situation.
• Estate Planning. HNWIs should consider estate planning. This is an essential consideration for anyone with significant wealth. Estate planning strategies may support more tax-efficient asset transfer, depending on individual circumstances.
• Risk Management. HNWIs need to be aware of the risks associated with their investments. This includes both the risks of losing money on an investment as well as any potential insurance needs that leave them exposed. HNWIs should work with a qualified high-net-worth financial planner to develop a risk management strategy that is appropriate for their unique circumstances.
• Retirement Planning. High-net-worth retirement strategies require special considerations. Significant assets are involved, and there is a high income to replace. Retirement planning for HNWIs may address expense coverage and income generation, with outcomes subject to investment risk.
• Create generational wealth. HNWIs can create generational wealth. This means passing their wealth on to their heirs to help them maintain their lifestyle and financial security. Financial planning for high-net-worth individuals is full of unique strategies and considerations. HNWIs should work with a qualified financial advisor to develop a plan for how they will transfer their wealth to their heirs.
• Explore testamentary trusts. A testamentary trust is a type of trust created upon the settlor’s death. This can be an effective way for HNWIs to pass on their assets to their heirs in a tax-efficient manner.
• Impart financial literacy. Individuals with a high net worth should take the time to impart financial knowledge to their heirs. Sharing financial knowledge with heirs may strengthen their ability to manage inherited wealth over time.

Financial advice for high-net-worth individuals in the areas above can help HNWIs work toward long-term financial stability. By addressing each of these areas with a qualified advisor, HNWIs may actively support personal wealth.

7 Financial Planning Tips for Ultra-High-Net-Worth Individuals

Financial planning can be even more important for ultra-high-net-worth individuals. They have a more significant amount of wealth to manage and may have more complex financial goals. UHNWIs should consider the following financial planning tips:

• Consolidate your assets with one trusted financial advisor. When you have a large amount of wealth, it can be challenging to keep track of all your assets and overall performance. UHNWIs stand to benefit significantly by consolidating assets with one trusted financial advisor. By working with one advisor, you can better handle your overall financial picture and can make more informed investment decisions.
• Split your family income to reduce your tax burden. UHNWIs may benefit by splitting their family income. This is a crucial part of ultra-high-net-worth tax planning. It means that different family members will pay taxes on a portion of the total income, rather than all of it being calculated and taxed as income earned by a single individual. This financial planning tip for UHNWIs can be especially beneficial for those who have children or other dependents. Tax planning involves considerations that may vary based on your individual circumstances. Consult a qualified tax professional for guidance specific to your situation.
• Put surplus assets into tax-saving investments and charities. UHNWIs often have a surplus of assets. One UHNWI financial planning tip is to invest in tax-saving investments or give to charity. Both of these options can help you reduce your overall tax liability while also supporting causes that are meaningful to you.
• Plan for business succession. Many UHNWIs attribute their wealth to owning their own businesses. For these individuals, it’s important to have a plan in place for business succession. Business succession planning may support continuity, though outcomes depend on individual business and market conditions—it may also help reduce tax exposure and support wealth transfer goals. A proper business succession plan can often be the cornerstone of financial planning for ultra-high-net-worth individuals.
• Pass on your vacation property to your children through inter-vivos family trusts. An inter-vivos trust, or a living trust, is a trust you create while you’re alive. Upon your passing, your listed beneficiaries receive whatever property or assets you’ve designated in the trust. Many UHNWIs own vacation properties. A vacation property can be passed along to your children through a living trust to provide asset protection and tax advantages for ultra-high-net-worth families.
• Hire Your Children. If you are a UHNWI with children and a business, you can consider hiring your children so that they can earn income and open a Roth IRA for kids. In 2026, children can contribute up to $7,500 of earned income per year to a Roth IRA, according to current IRS contribution limits. This is a way to help your children save for their future and gain financial education while also getting some tax benefits for yourself as a business owner.
• Comprehensive Financial Planning. As your wealth grows, so too does the complexity of your financial life. Consulting an experienced financial planner may help address the broad range of UHNWI financial planning considerations. High-net worth planning covers everything from investment management and estate planning to insurance and philanthropy. Comprehensive planning seeks to support informed decisions, though wealth preservation involves risk, and no outcomes are guaranteed.

Why Do HNWIs and UHNWIs Need a Financial Advisor?

HNWIs and UHNWIs have unique financial needs that require specialized knowledge and expertise. A financial advisor experienced with HNWIs and UHNWIs can help create a customized plan that considers the client’s specific goals and objectives.

The advisor can also provide guidance on investment strategies, asset allocation, and risk management. Retirement planning for high-net-worth individuals is another key need that a capable advisor can address. In addition, a financial advisor can help to navigate complex tax laws and regulations.

Contact us to learn more about how we may be able to help you work toward your financial goals. Our team provides comprehensive financial planning and investment management services catered to your unique needs and circumstances.

7 Benefits of High-Net-Worth Financial Planning

For HNWIs and UHNWIs, high-net-worth financial planning is a step to help support their financial success. Here are a few essential benefits afforded by working with a qualified financial advisor:

• Keeping it simple. Life is hectic. We always seem to be busier than ever, juggling full schedules with a few too many balls to keep in the air. Financial planning is complex, especially for people with a high net worth. A good high-net-worth financial advisor will work with you to simplify high-net-worth financial planning and help you make informed decisions about your money.
• Protecting Your Assets and Limiting Exposure to Creditors. One of the main concerns of HNWIs is asset protection. A financial advisor can help to create a plan that aims to protect your assets from inflation and provide support in navigating market downturns.
• Maintaining Lifestyle After Retirement. High-net-worth retirement planning is not just about having enough money to cover expenses. It also includes the goal of maintaining the same standard of living that they’re accustomed to. Retirement planning may support lifestyle goals, though outcomes depend on market conditions and individual circumstances.
• Minimizing Your Tax Burden. Tax optimization strategies are top of mind for HNWIs and UHNWIs. Tax-aware strategies may help reduce tax exposure and support wealth management goals, subject to individual circumstances.
• Optimize Investments. A financial advisor can help you make informed decisions about where to invest your money. Tax-aware strategies may help reduce tax exposure and support wealth management goals, subject to individual circumstances.
• Passing Wealth Down to Your Heirs. One of the primary goals of most HNWIs is to ensure that they pass their wealth down to their heirs in the most efficient manner possible. A financial advisor can help you create a comprehensive estate plan that considers your unique circumstances and objectives. They’ll also consider the opportunities afforded by your personal circumstances to create a suitable strategy for you and your legacy.
• Fulfilling Your Charitable Wishes. HNWIs and UHNWIs often desire to give back and make a difference through philanthropic causes. An experienced advisor can help you create a charitable giving plan to fulfill your charitable goals while finding tax deductions.

Working with a financial advisor is a meaningful step in the high-net-worth financial planning process. The right advisor can help to simplify your finances, protect your assets, and work to minimize your tax burden. A well-structured strategy may support both securing and leveraging your wealth for yourself and your family. Investing involves risk, including possible loss of principal. Past performance is not indicative of future results.

In Summary: High-Net-Worth Financial Planning

Financial planning is an important process for anyone with significant assets, but it is especially important for high-net-worth and ultra-high-net-worth individuals. Protecting the larger amount and broader variety of assets held by these individuals requires specialized knowledge and experience.

It may not be enough to simply choose any financial planner for HNWIs and UHNWIs. A partner with experience in managing assets and building financial plans for individuals and families with substantial assets can provide additional insight and guidance. The time spent finding the right financial planner can provide a return in terms of more specific and effective advice.

The team at Dechtman Wealth Management provides comprehensive financial planning and investment management services catered to your unique needs and circumstances.

Contact us today to learn more about how we may be able to help you work toward you financial goals.

¹ Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. ↩︎