Financial Planning for High Net Worth Individuals: A Guide

Author: Joel Miller, CFP. Reviewed November 6, 2026. Figures and definitions are cited to government sources as of that date. This article is educational. It is not personalized tax, legal, or investment advice, and individual circumstances vary. A tax professional or attorney can confirm how the rules apply to you. If you would rather talk it through, you can schedule a Discovery Meeting.

What does "high net worth" mean, and what does it not mean?

There is no single legal or industry definition of a high net worth individual. Banks, wealth managers, and regulators each use their own cutoffs, and the cutoffs can differ by hundreds of thousands or millions of dollars. Treat any label as a marketing or regulatory category, not as a measure of how complex a household's finances are.

One federal reference point is the SEC's accredited investor definition, which governs who may take part in certain private offerings. As of November 6, 2026, the SEC lists a net worth over $1 million, excluding the primary residence (individually or with a spouse or partner), or income over $200,000 individually or $300,000 with a spouse or partner in each of the prior two years, as financial criteria. The SEC's accredited investor page was last reviewed by the agency on April 24, 2026.

That definition has limits as a planning yardstick. It was written to decide eligibility for private offerings, not to describe what a household needs from planning. It also leaves out the primary residence, so it may not match how a household thinks about its own net worth.

This guide is written for analytical households that coordinate taxes, equity compensation, retirement income, and estate documents. That often includes households with roughly $1 million to $5 million in investable assets, but complexity depends on the situation, not on a dollar cutoff. Flames FP has no minimum balance.

How do equity compensation and concentrated positions change planning?

For corporate employees, stock pay can add income, tax timing, and concentration to the same decision. The details depend on the grant type and the plan documents, and the general points below may not match your plan.

• RSUs: the value of shares at vesting is generally treated as wages, and withholding at vest may differ from the tax owed on the return. Our guide to RSU tax withholding covers the mechanics. The limitation is that withholding rates are set by rule and may not reflect your total income.
• ESPP shares: the tax treatment depends on whether a sale is a qualifying or disqualifying disposition. See ESPP tax rules. The limitation is that holding shares to reach a different tax result means keeping money in one company's stock longer.
• Stock options: IRS Topic 427 summarizes how incentive and nonstatutory options are taxed. Exercising some options may trigger the alternative minimum tax.
• Concentrated positions: when pay, bonus, and savings all depend on one employer, a household may weigh how much company stock to hold. Our guide to the tax side of a concentrated stock position covers the trade-offs. Selling may create a taxable gain under the capital gains rules in IRS Topic 409, while holding keeps the concentration.

Higher income can also bring the net investment income tax into view. According to IRS Topic 559, as of November 6, 2026, the tax is 3.8 percent of the lesser of net investment income or the amount by which modified adjusted gross income exceeds $250,000 for married filing jointly or $200,000 for single filers. Those thresholds are set in the statute and are not indexed for inflation.

What should estate planning cover?

Estate planning for a larger household is often a coordination task. A planner may review beneficiary designations and account titling, and an attorney drafts wills, trusts, and powers of attorney. Our page on how a financial advisor works with your estate planning attorney lays out that split.

Two separate thresholds may matter. As of November 6, 2026, the IRS lists a federal basic exclusion amount of $15,000,000 for decedents who die in 2026, on its estate and gift tax page. The Minnesota Department of Revenue lists a $3,000,000 exclusion and filing threshold for 2026 decedents on its estate tax page. A Minnesota estate may owe a state filing even when it is below the federal amount. The limitation is that these amounts change by law and by year of death, and other states apply different rules, so an estate attorney can confirm what applies.

What questions can you ask any advisor about scope and fees?

These questions may help compare advisors on the same terms, whether or not you work with Flames FP.

1. What is included? Ask whether taxes, equity compensation, retirement income, and estate coordination are part of the service or priced separately.
2. How are you paid, in dollars? Ask for the total yearly cost in dollars for your household, and what could change it.
3. Who does the tax work? Ask whether the advisor prepares returns, coordinates with your CPA, or gives general education only.
4. How are conflicts handled? Ask how the advisor is compensated on any product and where that is disclosed in the Form ADV.
5. What happens when something changes? Ask how a new job, a large vest, or a move gets reviewed and how quickly.
6. What does the relationship look like after a year? Ask what a typical review includes and how often you would meet.

Frequently asked questions

What is financial planning for high net worth individuals?

It is planning that coordinates investments, taxes, retirement income, estate documents, and ongoing review for households whose finances have several moving parts. There is no single definition of high net worth, so the scope that fits depends on the household's situation rather than a dollar cutoff.

How much money makes you high net worth?

It depends on who is defining it. The SEC's accredited investor definition, for example, lists a net worth over $1 million excluding the primary residence, but that definition was written for private offerings. Banks and wealth managers use other cutoffs, so a household may be high net worth under one definition and not another.

Do you need a special advisor if you are high net worth?

Not necessarily. Some households work with a planner, a CPA, and an attorney, and others work with one firm that coordinates all three. The useful questions are about scope, fees, and how conflicts are handled, which are listed above. Each arrangement has trade-offs.

How do advisors charge high net worth clients?

Common models include a percentage of assets, a flat or membership fee, hourly rates, one-time project fees, commissions, and hybrids. Each has benefits and limitations, and the total cost depends on the services included. The Form ADV Part 2A describes an advisor's fees and can be searched at adviserinfo.sec.gov.

Does estate planning change at higher net worth?

It may. As of November 6, 2026, the federal basic exclusion amount is $15,000,000 for 2026 decedents and Minnesota's is $3,000,000, according to the IRS and the Minnesota Department of Revenue. These amounts change, and other states differ, so an estate attorney can confirm which rules apply to your situation.

Flames FP approach

How Flames FP Handles This

Flames Financial Planning coordinates investments, taxes, retirement income and estate guidance under a flat quarterly membership, with no fee on assets. Planning includes proactive tax guidance and a planning-focused review of a completed personal return. Premier adds ongoing tax projections, Roth-conversion and capital-gain modeling, retirement-income and withdrawal implementation, and eligible tax-return preparation and filing through an independent tax partner.

Memberships are billed quarterly in advance with no annual commitment. See what each includes on the pricing page, read how the pieces fit together on the retirement tax planning overview, or, if you are weighing a subscription firm, see the side-by-side with Facet.