High-Net-Worth Wealth Management: 5 Tough Issues Most Advisors Can't Handle
Millions of people turn to financial advisors for guidance on how to invest their money. But for high-net-worth clients, wealth management involves far more than just taking money and investing it. Advisors who specialize in working with clients with high levels of wealth must know how to handle many issues that traditional brokers and financial advisors typically can't. In particular, the following five things often arise for high-net-worth individuals and are a must for true experts in wealth management.
Once a client has enough money, the biggest challenge is managing the risks that threaten to take it away. Traditional insurance products can only go so far in helping high-net-worth individuals, because the high policy limits necessary for true protection often require customized underwriting from insurance companies. Moreover, special types of insurance are necessary to provide full protection against the diverse sets of risks that high-net-worth individuals face. Examples like key-person insurance in the business context and customized forms of liability protection are crucial to ensure that every risk is managed to the fullest extent possible.
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Source: Fool.com