High Net Worth clients can be more complicated to service and can expect advisers to be across all of their financial affairs. They can also be a more time consuming sector to service.
There’s no doubt that this highly-sought after client represents a strong growth category as the number of wealthy Australians is set for significant growth over the next five years, with HNW individuals set to grow by 71.1 per cent and ultra HNW individuals set to rise by 40.9 per cent, according to data from real state consultancy Knight Frank’s ‘The Wealth Report 2023’.
Already, there are more than two million Australians with a net worth of between $1.5 million to $7.7 million. The nation’s booming real estate market has been responsible for floating most of these people to the top of the pile, while most of the nation’s wealthy people reside in Sydney, according to researcher Statista.
But advisers say the need for hands-on assistance means that HNW clients can take additional time to service. Advisers often bought up to speed on a range of personal and business financial goals as well as family and estate goals, explains Nigel Baker from Arch Capital.
Baker tells Professional Planner property holdings and other investments, along with investment advice for extended family members is also usually part of the service.
“We also provide access to our professional network, and a coordination service between all professions across tax, debt, risk and estate, ensuring they have secure online storage for all important documents,” Baker says.
“While not the tax agent, we ensure tax compliance matters are also organised, coordinated and lodged.”
Chris Smith from VISIS Private Wealth agrees that because of the more complex nature of HNW clients, they can take more time to service. Most of the time, they want a financial adviser able to drive their strategy plan and give them back time to focus on their own lives.
“Our clients are secure in knowing that we manage their affairs with expertise and precision without being asked,” Smith says.
“Our team is in continuous pursuit of avenues for strategic benefit and reach out to our clients as opportunities arise, proving the foundation of trust critical to acting with confidence.”
HNW clients working with AIA Australia financial planner Paul Peng Yang can also expect access to exclusive products and services, personalised attention and tailored solutions.
“We prioritise discretion, offer dedicated services, and focus on wealth preservation and growth strategies tailored to their unique financial goals and risk tolerance,” he says.
HNW clients also tend to need increased structure management and professional liaison services, Saikal-Skea Independent Financial Advice founder Andrew Saikal-Skea says.
“There’s almost always more complexity when it comes to their structures and asset protection,” Saikal-Skea says.
“This means that we spend more time with their accountant and legal team to ensure everyone is working cohesively to get the best outcome.”
Intergenerational planning is another common area that HNW clients need assistance with, meaning advisers are often expected to build relationships with the younger generations likely to receive an inheritance to ensure it that the family’s wealth is managed successfully.
Philanthropy is often another important consideration for this sector, such as the need for advice around administering pre-retirement donations.
“This could include the establishment of an ancillary fund that they can fund while working, and then primarily use in retirement to give at any time when they can devote more focus,” Saikal-Skea says.
