Texas-based financial executive Fritz Mowery serves as the president and chief investment officer at Mowery Capital Management in Dallas. Through a fee-only investment advisory firm, Fritz Mowery and his team provide clients with ongoing supervision of their investment accounts, in addition to reviewing their financial goals and financial situation.
Many people think that being rich will solve all their financial problems, but in reality, affluent individuals still have many financial concerns. Below are a few of the most common worries these individuals have:
The tax code
Since affluent individuals make more, they pay more income tax every year. In fact, ultra-high-net-worth individuals (UHNWIs), who have assets of over $30 million, pay around 39 percent of their income to taxes. While there are provisions in the tax code to help UHNWIs reduce their liability, changes to the code could easily increase their estate taxes or remove beneficial deductions.
Retirement income
Compared to most investors, affluent individuals may worry about retirement income less, but that doesn’t mean it’s still not a top concern for them. Those who reached affluence by investing will likely not experience much change between their pre- and post-retirement lives. However, those who reached their status via a job are more likely to experience a decrease in their income after retiring, so it’s essential that they make plans to maintain their lifestyle.
Asset protection
Affluent individuals have a high amount of real property and assets that contribute to their estate. In situations where they have financial issues, creditors may settle debts using these assets. Beyond that, affluent individuals must worry about identity theft or litigation that decreases their wealth. To protect against such concerns, affluent individuals often plan safeguards for their assets so both they and their heirs remain comfortable.
Many people think that being rich will solve all their financial problems, but in reality, affluent individuals still have many financial concerns. Below are a few of the most common worries these individuals have:
The tax code
Since affluent individuals make more, they pay more income tax every year. In fact, ultra-high-net-worth individuals (UHNWIs), who have assets of over $30 million, pay around 39 percent of their income to taxes. While there are provisions in the tax code to help UHNWIs reduce their liability, changes to the code could easily increase their estate taxes or remove beneficial deductions.
Retirement income
Compared to most investors, affluent individuals may worry about retirement income less, but that doesn’t mean it’s still not a top concern for them. Those who reached affluence by investing will likely not experience much change between their pre- and post-retirement lives. However, those who reached their status via a job are more likely to experience a decrease in their income after retiring, so it’s essential that they make plans to maintain their lifestyle.
Asset protection
Affluent individuals have a high amount of real property and assets that contribute to their estate. In situations where they have financial issues, creditors may settle debts using these assets. Beyond that, affluent individuals must worry about identity theft or litigation that decreases their wealth. To protect against such concerns, affluent individuals often plan safeguards for their assets so both they and their heirs remain comfortable.
