When to Hire a Wealth Manager: Net Worth Thresholds Explained

Deciding when to engage a wealth manager is a critical transition in financial planning, especially during significant liquidity events. This document outlines strategic planning elements essential for clients with a net worth between $3M and $10M, often following a liquidity event like a business sale. Key strategies include liquidity segmentation, tax deferral, diversification, and risk management. Advanced tax strategies such as installment sales, Donor-Advised Funds, and Charitable Remainder Trusts are highlighted to optimize tax efficiency. Effective portfolio construction across indexed equities, bonds, and alternatives is crucial, alongside managing behavioral risks like overconfidence and lifestyle inflation. An implementation roadmap suggests initial tax planning and allocation within 90 days, followed by execution and ongoing quarterly reviews to ensure long-term financial sustainability.