The Wall Street Journal recently made the point that financial planning isn’t just for those who need to save for a rainy day. The wealthy also need financial planning, says the venerable Wall Street paper.
Interviews with financial planners specializing in the super-rich revealed that sometimes multi-million dollar households need to pinch pennies on things like private jets if they want to do the kind of charitable giving they dream of. They may also have to plan ahead if they want to leave the next generation enough to live on in the style to which they are accustomed.
The report explained that individuals who feel they have more money than they could ever spend may be surprised by the idea of budgeting, and their kids may have no idea how it’s done. They expect financial planning to focus on increasing their returns or on taxes.
But creating and following a budget is a good idea for anyone. Protecting your wealth can involve understanding your financial goals and managing spending as well as investment, charitable giving, estate planning, and tax planning.
Many of the issues financial planners discuss with their wealthiest clients are the same ones most of us think about: how to help with our grandchildren’s education, how to support the causes we believe in, and how to live in comfort to the end of our lives.
Taking time with a qualified financial advisor is a worthwhile investment for people at any income level.