The Five Financial Strategies Of High Net Worth People Help You Make Big Money.

People usually think that the financial planning of high net worth people is finer investment and complicated strategy.

For the general public, these investments and strategies are either too costly or impossible to reach.

According to experts, the following strategies are the most valued by wealthy customers.

1. establish a

。

A good cash flow model is to show the expected inflow and outflow of customers, and indicate how the asset allocation will affect the current asset base.

Models usually illustrate the possibility that customers achieve or maintain financial goals.

It can also prevent customers from making flurried decisions when the market is fluctuating.

In addition, the cash flow model seeks to increase returns by eliminating risk / return parameters in portfolios.

Two

Maximize input.

One of the main tasks in this area is to maximize the input in the tax-deferred accounts.

At the same time, these customers will also use controversial pension management measures to avoid tax, such as Ross Roth IRA.

3. lower personal income tax and capital gains tax.

Because of the higher tax rate in most forms of income, Asset Management Co will reduce capital gains tax through tax-loss harvesting.

The loss of tax revenue involves the sale of certain securities at a loss, in order to offset other gains.

Another strategy is to use the appreciation of stocks instead of cash to make charitable donations.

4. avoid

。

Inheritance tax is the "thorn in the flesh" of high net worth people.

However, by reducing the value of heritage, we can mitigate (or avoid) the impact.

There are many ways to reduce the value of inheritance.

The current law of the United States stipulates that the donation within the limit is tax-free.

At the same time, various trusts can be established to divest assets from the legacy.

5., pay attention to charities.

Philanthropy is very important to many high net worth people.

They are concerned about the inheritance of wealth to their successors, and they also care about passing on their values.

Charitable remainder trusts (CRT), charitable lead trusts (CLT), donor guidance fund (donor-advised funds, DAF) can help achieve this goal.

However, experts who deal with wealthy customers say these are rarely regarded as the focus.

Their financial plans are more likely to focus on basic strategies, such as setting up a cash flow model, maximizing pension accounts, minimizing taxes and establishing plans to pass wealth and values to future generations.