For financial advisors working with ultra-high-net-worth (UHNW) clients, understanding spending patterns is vital to crafting a well-rounded financial strategy. However, accurately assessing spending rates is often overlooked in financial planning, regardless of whether the focus is on long-term investments, estate planning or liquidity management.
In some cases, families have remained wealthy for generations and have successfully been able to transfer their assets to children and grandchildren, who then carry the torch.
Many ultra-high-net-worth individuals and families take great pains to surround themselves with top-tier registered investment advisors, certified public accountants, tax attorneys and other advisors that range from prominent art dealers to high-end insurance agents.