An individual or family is considered an “ultra-high net worth” client if they have investable assets of $10 million or more. The distinction between a “high net worth” client and an “ultra-high net worth” client is important because once a client has investable assets of $10 million or higher, their financial planning needs change and expand.
As I mention in the below interview, a large majority of our clients are entrepreneurs who, for varying reasons, have decided to sell their businesses; we assist them with the liquidation process. Often, the liquidity process takes the client from high net worth to ultra-high net worth, and so it is important to recognize this likelihood and plan for it in advance: What new concerns need to be addressed? What decisions need to be considered that are different from or expansions of ones that previously needed to be considered? These factors are many, and they need to be anticipated and addressed long before the actual sale of the business takes place. Thus, it is important to starting planning for them long before the actual sale takes place – and even before the liquidity process begins.
In this AdvisorTV interview, I address some of the specific concerns faced by ultra-high net worth clients as well as those who are potentially transitioning into ultra-high net worth clients:
Let’s have another great week!