The beginning of a new year presents a unique opportunity to reflect, recalibrate, and set actionable goals for the future. For high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals and families, the stakes are particularly high: wealth sustains current lifestyles and ensures legacy, impact, and growth. Here are essential steps and considerations for refining financial goals in the new year.
Reassess Your Wealth Strategy
The financial landscape constantly evolves, and new tax laws, market volatility, and global economic trends can all impact your portfolio. Use this time to:
- Review your asset allocation: Ensure your portfolio aligns with your risk tolerance and long-term objectives.
- Evaluate your liquidity needs: Can you meet immediate obligations while growing your wealth?
- Conduct a scenario analysis: Stress-test your portfolio against potential market downturns or interest rate changes.
Strengthen Family Governance
HNW and UHNW families often encounter challenges in managing and sustaining generational wealth. Enhancing family governance ensures harmony and alignment. Consider:
- Drafting or updating your family mission statement.
- Organizing family meetings to discuss financial goals and responsibilities.
- Providing financial education training for younger generations.
Optimize Tax Strategies
The new year is an ideal time to revisit your tax planning approach. Work with your Sequoia Financial Advisor to:
- Maximize tax-efficient investments, such as municipal bonds or tax-advantaged accounts.
- Leverage charitable giving for tax benefits, including donor-advised funds or charitable trusts.
- Plan for upcoming tax law changes affecting estate or income taxes.
Philanthropy: Giving with Purpose
For many, wealth carries a responsibility to make a difference. Align your giving strategy with your personal values or family mission.
- Review your charitable contributions: Are they creating the intended impact?
- Consider endowing scholarships, funding non-profits, or creating a foundation.
- Explore the benefits of impact investing: Generate social and financial returns simultaneously.
Estate Planning and Succession
The transfer of wealth is often one of the most critical and sensitive areas for families. Ensure your estate planning documents reflect your intentions.
- Review or update wills and trusts to include current legislative considerations or changes in family dynamics. Establish clear succession plans for family businesses.
- Engage heirs in the planning process to prepare them for their responsibilities.
Invest in Legacy Projects
Beyond monetary wealth, many families prioritize creating a legacy. This could involve:
- Establishing family offices to centralize wealth management.
- Funding long-term projects such as environmental conservation or educational initiatives.
- Preserving family heritage through curated collections or properties.
Leverage Technology and Professional Expertise
The rapid advancements in financial technology offer new tools to simplify wealth management.
- With guidance from your Sequoia Financial Advisors.
- Frequently communicate with your Sequoia Financial Group wealth advisors for expert guidance.
- Monitor cybersecurity practices to protect sensitive information.
Focus on Holistic Well-Being
Financial success often overlaps with personal well-being. Align your financial goals with broader life aspirations:
- Support experiences that enrich family bonds, such as vacations or shared ventures.
- Prioritize health by investing in wellness programs and medical care.
- Balance professional and personal time to avoid burnout.
Embrace Flexibility and Agility
Uncertainty remains a constant in global markets. A resilient financial plan must adapt to change:
- Regularly revisit and adjust your financial goals.
- Build contingency plans for geopolitical or economic disruptions.
- Stay informed with regular updates from your Sequoia Financial Group Advisors.
Conclusion
The new year is more than a time to set resolutions—it’s an opportunity to position yourself and your family for sustained success. By setting clear, actionable goals and leveraging the expertise of financial professionals, HNW and UHNW individuals can confidently navigate complexities, secure their legacy, and create meaningful impact. Here’s to a year of purpose, prosperity, and progress!
If you have questions on how to set and act on new financial goals, don’t hesitate to contact Sequoia Financial Group.
The views expressed represent the opinion of Sequoia Financial Group. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Sequoia believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sequoia’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not an indication of future results. Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.
The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Tax and estate preparation is done by a 3rd party and not Sequoia Financial Group.
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