The goal of most basic retirement strategies is to simply ensure that clients do not outlive their source of income, whether that’s their savings, their pension plan, or their social security. For high-net-worth clients, EsqWealth has a different approach.
Simply performing a quick Internet search for “the amount of money one needs in order to retire” will yield several articles and books on the topic discussing simple rules and computer models (e.g., the 4% Rule, the 25xRule, the Monte Carlo Simulation, and so on). These models are based upon a list of assumptions including expected rates of returns, inflation, and life-expectancy, nearly all of which turn out to be wrong. One can simply multiply their annual expenses by 25 or divide by 4% or they can run the assumptions through various simulations. Most “experts” in the financial advice field simply plug their clients’ assumptions into these models and tell them how much money they need to retire. However, not only is this conventional approach fundamentally flawed, it simply does not apply to most high-net-worth individuals.
High-net-worth individuals have unique strategies, hold their assets in the name of various entities for tax and asset protection reasons, and often have multiple streams of income to multiple entities that are not so simple. At EsqWealth, we help clients go beyond coming up with a simple “retirement number.” We help you to be sure you have sufficient assets to cover more than everyday expenses (a second or fourth home, extended travel, recreation, and entertainment), provide support for others (your loved ones, children, and grandchildren), account for unforeseen expenses (healthcare costs or caring for others), minimize estate tax obligations, and leave a legacy for your loved ones. Whether you’re planning for retirement, almost there, or you’ve already hung up your hat, we have strategies that will serve your financial success for every phase of the journey.
