Financial Advice for High Earners
High earners require specialist financial advice to make sure they're making the most from their money - whether that's paying less tax on their earnings or building a passive income through investments. This guide goes into detail about how Holborn Assets offer expert financial advice for high earners.Get financial advice
A common myth is that being a high earner equals instant financial security.
In reality, managing your finances as a higher earner requires careful planning. With higher tax rates, plus other complexities, there can be a lot of hurdles to navigate. The wrong move could be very costly for your portfolio. It could also result in you losing the ability to maintain your current lifestyle once you’ve retired.
Getting the right financial advice is therefore crucial for anyone who is a higher earner or HNWI individual, whatever stage of your career you happen to be at.
Here at Holborn Assets, we specialise in financial advice for higher earners, whether you are based in the UAE or elsewhere as an expatriate.
For anyone in search of financial advice, here is an overview of how our experts can work with you to protect and ultimately grow your wealth portfolio over time.
In this article
Why do higher earners need financial advice?
A report by Money Marketing found that just 8% of consumers use a financial adviser.
The report added that 76% of 34-45 year olds do not have a financial adviser. In addition, only 47% of investors check their pensions regularly.
This is despite the Financial Conduct Authority (FCA) stating “Advisers play an increasingly important role in the choices people make, and the impact of those choices on their quality of later life.”
It could be argued that the 92% of people who don’t have a financial adviser are missing out. But for high earners, not having a regular, professional review of your financial health can lead to missed lucrative opportunities. Over the longer term, not taking action now could put your future financial stability at risk.
Many sources cite that financial advisers generate a typical annual ROI of 3% for those who use their services. For any high earners, this can soon amount to a significant figure.
In contrast, a good way to think about this loss is to imagine 3% of the value of your portfolio disappearing each year – simply due to a lack of financial planning. This of course could be a far higher percentage depending on the asset and strategy in question.
While there are no guaranteed percentage returns of any financial service, we feel any return is well worth achieving compared with any potential losses. This is especially the case given how easy it is to arrange a financial review with us here at Holborn Assets.
Plus, as our financial advisers are fully qualified and regulated, you can be sure the advice you receive will not only be tailored but informed. All of which is designed to ensure you are in the best financial position possible going forward.
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High-net-worth financial planning services
What qualifies as a higher earner?
The ‘higher rate’ tax bracket in the UK currently stands at earnings above £50,271 per year.
Most higher earners are considered to be those earning above or at least close to six figures per year.
Could you benefit from financial advice as a high earner?
If you meet any of the criteria below, you could potentially benefit from working with a high-net-worth financial adviser:
- I want to know that my finances are in the hands of fully qualified, regulated experts who genuinely care about my best interests.
- I want peace of mind that my financial or retirement plans are on track.
- I’m interested in looking at ways to reduce my tax.
- I want to learn more about investment options as a high-income earner.
- I’m an expat (i.e. a UK citizen living in the UAE) and I need expertise in both markets to ensure all financial opportunities are being maximised.
- I’ve had a change in circumstances (i.e. family dynamics or health issues) and want to best manage my high income.
What will happen during a financial review?
If you’re a high earner and have any questions or concerns about your financial health, there isn’t a better place to start than a financial review.
A financial review is your chance to sit down with one of our experts. We’ll work with you to create a tailored financial plan that looks at where you want to be compared with where you’re at now.
A tangible plan will then be created to ensure you’re on track to reach these goals.
What questions should I ask my financial adviser?
Before meeting with your financial adviser, we recommend thinking carefully about any financial concerns you’d like to address. Likewise, any goals you want to achieve for your future such as retiring early, relocating or simply achieving long-term financial stability.
Our financial advisers will also bring their own questions to the table to provide a thorough approach to your financial plan.
Some of our top requests for high earners relates to:
- Financial advice for high earners
- Wealth management for high-net-worth families
- Financial advice for medical professionals
- Financial planning and wealth management for professionals
Wherever you fit within the high-earner landscape, our financial advisers are well-positioned to guide your next steps.
Who do we provide financial advice to?
Holborn Assets provides financial advice for high earners spanning many different backgrounds and industries.
Some of our most common requests relate to:
- Financial advice for CEOs
- Financial advice for CFOs
- Financial advice for CMOs
- Financial advice for chief marketing officers
- Financial adviser for executives
- Financial adviser for high-net-worth families
- Financial advice for lawyers
While some of our most popular areas of specialism, these are far from exhaustive. In fact, we try to consider every possible scenario applicable to high-income individuals.
As noted above, we also specialise in providing financial advice for expatriates across our 18 global offices.
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High-net-worth individuals (HNWI)
High-net-worth individuals (HNWI) are considered those with at least £1,000,000 in liquid financial assets.
The goal with financial advice and planning for HNWI is to ensure all income, investment, tax and retirement opportunities are being realised. In addition, to protect the future financial health of the individual, plus any spouses or children where applicable.
High earners not rich yet (HENRY)
Are you what the financial industry has dubbed a ‘HENRY’? This is known as someone who is considered to be a high earner, but is not rich yet.
In the United States alone, 13% of households are considered to be HENRY.
Wherever you happen to be based, if you’re a HENRY, you are experiencing the same issue. That is, despite being a high earner, your income isn’t making the difference it should be to the quality of your life. You may also lack any financial plan for your retirement.
As a high earner, you will face higher taxable income rates which could stop you from getting to where you want to be.
Our financial advisers can provide independent honest advice to overcome any obstacles as a higher earner. We will achieve this by providing not only a fresh pair of eyes, but an expert analysis of your financial standing.
This can make all the difference for anyone wanting to escape the HENRY scenario. Ultimately, financial seeking advice is about being able to enjoy your wealth, and capitalise on your success.
Seeking financial advice as a high earner FAQs
We know there’s a lot to consider when it comes to seeking financial advice, especially as a high earner or HNWI.
We’ve answered some of the most common questions below to guide you. Don’t see your query listed? Please contact us and one of our financial advisers will be in touch.
What is considered high-net-worth for financial advisers?
The answer will depend on several factors, and may vary on the country in question. Typically, a high-net-worth applies to those with liquid assets of at least £1,000,000.
What qualifies as an ultra-high-net-worth individual?
An ultra-high-net-worth-individual (UHNWI) is considered someone with a net worth of at least £30,000,000.
In between UHNWI and HNWI, there is also a very-high-net-worth (VHNWI) individual which is someone with liquid assets above £5,000,000.
Will the UAE introduce income tax for ‘high earners’?
At the time of writing, the UAE does not deduct income tax from earnings, which is a huge appeal for UK expats who relocate to cities such as Dubai in particular. However, CNBC reports that the UAE will be introducing federal corporate tax for the first time in 2023.
If anything were to change with the UAE’s taxation system, a financial adviser would be instrumental in guiding you through the changes. In the meantime, our Dubai based financial advisers can help you with all financial matters related to living in the UAE under the current system.
Key takeaways: Why seek professional financial advice as a high earner?
Not all financial advice is created equal – specifically advice for higher income bands and those with more taxable income.
Qualifications and regulations in the financial industry are of course essential. However, another key aspect is having an intrinsic understanding of what it means to be a high earner or HNWI.
Ultimately, a professional will give you advice you can trust. In contrast, high earners can sometimes attract unsolicited advice, where the goal is not based on your best interests.
Financial advice for higher earners at Holborn Assets seeks to put your financial interests, health and security first. We can also offer an unrivalled level of discretion as part of our fully professional service.
Secure your financial future as a high earner with Holborn Assets
Are you a high earner or HNWI in search of financial advice? Holborn Assets has a global presence as one of the largest worldwide financial advisories, having been established since 1998.
Our highly knowledgeable team of experts can advise across various strands of high earner financial advice. We have a particular specialism in UK expats living in the UAE, with a dedicated office based in Dubai.
For any help or advice with anything we’ve mentioned above, let us know how we can help and our team will be in touch shortly.