A Retirement Planning Guide for High-Net-Worth Individuals

The U.S. Securities and Exchange Commission (SEC), in its Form ADV documentation, explains that someone is generally considered a High-Net-Worth Individual (HNWI) if they have at least $1.1 million in assets managed by a financial advisor or a net worth of more than $2.2 million, excluding the value of their primary residence. If you fall into this category and have this amount of wealth, you are considered a high-net-worth individual.

This is great because you are already far ahead of many others in financial security. But the thing with financial security is that it is not a one-and-done achievement. You may lose your wealth if you do not plan ahead and use the right strategies to secure it. If you want a strong, stable, and fulfilling high-net-worth retirement, you need to start planning early and plan wisely.

Here is a guide on retirement planning for high-net-worth individuals that you can benefit from. 

Below are 5 high-net-worth retirement strategies that you can use to ensure your golden years are financially secure:

1. Look at your assets and bank accounts to understand what you really own right now

The first step in retirement planning, if you’re an HNWI, is to understand your current situation. You might have a general idea of your net worth, but retirement planning requires you to dig a little deeper. 

You can start by listing out your bank accounts, investment portfolios, workplace retirement accounts, Individual Retirement Accounts (IRAs), real estate, insurance cash values, and even passive income sources. Understand what these are worth and how they are likely to grow in the years to come.

Once you have everything in front of you, look at the mix. Do you mostly hold cash? Are your assets tied up in high-risk, high-reward investments? Do you have a steady stream of passive income from rental properties or dividends? Understanding the nature of what you own is just as important as knowing the amount. 

The next step is to think about the lifestyle you want in retirement. Be honest with yourself about what you imagine. Do you want to travel often? Do you want to live in the city or move to the suburbs? Your future lifestyle will help you understand the amount and type of assets you need to accumulate.

After that, take a close look at your monthly expenses today and estimate how they might change in the future. Factor in inflation and understand how it may impact essentials like housing, healthcare, food, and more in the future. 

Finally, compare two things: 

• What you are likely to spend in retirement, and
• What you currently have in your bank accounts and other assets

The difference between the two numbers is your target. This is how much you need to save. This figure will show you what you need to work towards to maintain the kind of life you want later.

2. Evaluate your needs and jot down your long-term retirement goals

Retirement planning for high-net-worth individuals cannot be completed without clear goals. After all, what are you even preparing for if you do not know where you are headed? A goal is everything.
In retirement, you can have multiple goals. You may want to prioritize healthcare and ensure you have adequate funds for it. You may want to buy a few homes, such as a vacation home, a primary residence, or even investment properties. You may also want to contribute to charitable organizations.

This is why you need to develop your long-term retirement goals if you haven’t already. And, you should also have a sense of when you want to accomplish these goals. The age you choose to retire, such as 50s, 60s, or 70s, can completely shift your investment strategy.

If you plan to fulfil a goal in your 50s, you have 20 years less than someone targeting their 70s, so the difference in approach becomes very clear. For instance, if you want to buy a vacation home in your early 50s, your approach will naturally be more aggressive because you have a shorter timeline. But if you are planning for the same in your 70s, you have far more time to prepare. Just two extra decades can change your risk appetite and impact the high-net-worth retirement strategies you need to implement.

If you have not yet sat down to map out these long-term goals, do it now!

3. Make sure you are maxing out your retirement account contributions

When you earn a high income, you also pay high taxes. That is why contributing to retirement accounts can be a wise move for high-net-worth individuals’ retirement planning. These accounts help lower your taxable income while building long-term wealth. 

You can start with your employer-sponsored plan, like a 401(k). For 2025, you can contribute up to $23,500. If you are 50 or older, you get an additional $7,500 catch-up contribution. And if you are between 60 and 63, you contribute more with a super catch-up, which is the greater of $10,000 or 150% of the standard catch-up, which is $11,250 in 2025. These limits will be increased in 2026.

In 2026, employees can contribute up to $24,500, and total employer and employee contributions can reach $72,000. If you are 50 or older, you can put in an extra $8,000. Those aged 60 to 63 can contribute up to $11,250 as a catch-up contribution instead of $8,000, allowing you to potentially invest up to $35,750 in 2026 if your plan allows it.

The IRA is another great option. In 2025, the contribution cap is $7,000. In 2026, it rises to $7,500. Individuals over 50 can add an additional $1,100. Even employer-funded Simplified Employee Pension IRA (SEP IRA) and Savings Incentive Match Plan for Employees IRA (SIMPLE IRA) limits have increased. It is now $72,000 for SEP IRAs and $17,000 for SIMPLE IRAs. 

But there is one thing you need to note. As a high-net-worth individual, you may not qualify for direct IRA contributions due to income limits. But you still have some options. A backdoor Roth IRA is one. A mega-backdoor Roth conversion through your 401(k) might be another option if your plan permits after-tax contributions. You can also look into a standard Roth conversion if that aligns with your long-term tax strategy.

Also, do not forget the Roth 401(k) option. If your employer offers it, this can be an excellent high-net-worth retirement strategy that can help you diversify your future tax exposure. Having a mix of pre-tax, Roth, and taxable accounts can help you when you eventually start withdrawing money in retirement.

Maxing out these accounts every year can reduce your tax bill today and prepare you for retirement with compounded growth. You can speak with your financial advisor to map out which of these accounts will work best for your situation. 

4. Plan for healthcare and long-term care – The mother of all retirement expenses

Healthcare and long-term care are major expenses you need to plan for. As you age, your medical expenses will rise. You will find yourself spending more on prescription drugs, doctor’s consultations, and even nutritionists. Long-term care can also quickly drain your retirement portfolio. That is why you must plan for these expenses now.

Using a Health Savings Account (HSA) can be advised. If you are enrolled in a high-deductible health plan and you have access to an HSA, consider maxing it out. For 2025, the IRS allows up to $4,300 for individuals and $8,550 for families. Those contributions are tax-deductible, the growth is tax-free, and withdrawals for qualified expenses are also tax-free. Another advantage of HSAs is that any unused balance carries over from year to year. Nothing expires, and over time, you get a sizable pool of money earmarked specifically for healthcare in retirement. 

But healthcare planning does not stop with HSAs. You also need to plan for long-term care. Traditional health insurance and even Medicare do not always cover services like assisted living, in-home care, hospice, or nursing homes. These services can be expensive and can potentially run into six figures annually. This is why long-term care insurance or having a dedicated long-term care savings strategy is essential. 

Retirement planning for high-net-worth individuals must include healthcare and long-term care planning. Make sure you use a combination of tools, such as HSAs, Medicare, insurance, and savings, to combat rising medical costs. Speaking to a financial advisor can help you select the right tools and also understand how medical inflation can impact your savings in the future. 

5. Get assistance from a wealth manager on tax optimization and other aspects of high-net-worth retirement planning

Getting help from a qualified wealth manager or tax planner is almost a necessity for high-net-worth individuals. Tax-advantaged accounts like 401(k)s, IRAs, HSAs, and Roth accounts are helpful, but you may need to do more. A wealth manager can help here. They can help you use high-net-worth retirement strategies like tax-loss harvesting, tax credits, timing your income, and balancing withdrawals in ways that enhance your savings and lower your taxes. 

For instance, when you use a 401(k), your money grows tax-deferred. You are saving money as none of it is being lost to Uncle Sam. But the moment you start withdrawing your money is when you start losing it to tax. This can be narrowed down to one mistake – withdrawal sequencing. The order in which you pull funds from taxable, tax-deferred, and Roth accounts can completely change your tax bill.

A common approach is to withdraw from taxable accounts first, then move to tax-deferred accounts like traditional IRAs or 401(k)s, and save Roth withdrawals for last. This lets your tax-advantaged money keep growing longer.

But this is not a universal rule.

Sometimes a blended approach, where you withdraw from multiple account types in the same year, can help avoid higher tax brackets or triggering Medicare premium surcharges. A wealth manager can help you understand these strategies and implement the one best suited to your income needs. 

There are several other ways to save tax. For instance, you can consider Roth conversions as well. Thanks to SECURE 2.0, the age at which Required Minimum Distributions (RMDs) must begin has increased. So, you now get more time to do Roth conversions at a controlled tax rate before those mandatory withdrawals begin. Done correctly, this can lower lifetime taxes and reduce RMD burdens. A wealth manager can help you execute a conversion. 

A wealth manager can also help with broader aspects of your retirement planning. They can structure your investments so your portfolio continues to grow in retirement. They can advise on asset protection strategies so that your wealth is protected from lawsuits and creditors. This is just the tip of the iceberg when it comes to what they actually do. A good wealth manager can help you with far more than you may realize. 

Summing up high-net-worth retirement planning

Retirement planning for high-net-worth individuals can be important because the money involved is too high. Knowing your assets, setting goals, using the right tax-advantaged accounts, planning for healthcare, lowering taxes, and creating suitable withdrawal strategies are all important steps you must focus on.

Hiring a qualified financial advisor or wealth manager can be helpful. Explore our financial advisor directory to find a qualified wealth manager near you. 

Frequently Asked Questions (FAQs) about retirement planning for wealthy individuals

1. Why is retirement planning for wealthy individuals important?

High-net-worth retirement planning is important because it helps ensure that your wealth is protected and preserved. It helps fuel financial growth and allows you to fulfil your short and long-term goals. 

2. Do you need a wealth manager for retirement planning if you are wealthy?

Technically, no. But it is strongly recommended. People with a high net worth may benefit from hiring a wealth manager. A wealth manager can help you with taxes, asset allocation, withdrawal sequencing, estate planning, and more.

3. How many high-net-worth individuals are there in the U.S.?

The U.S. has around 22.7 million people with a net worth of more than $1 million, far more than any other country. If you fall into this category, make sure you follow the right strategies to protect your wealth while ensuring it continues to grow and fulfill your goals in the future.

5. What tips matter most for retirement planning for high-net-worth individuals?

A few things:

• You need to get clear on your long-term goals.
• You should structure your investments in a tax-efficient way.
• You also need to plan seriously for healthcare and long-term care.
• Protecting your assets from market and legal risk should be a priority.

For additional information on retirement planning strategies tailored to your specific financial needs and goals, please visit Dash Investments or email me directly at dash@dashinvestments.com.

About Dash Investments

Dash Investments is privately owned by Jonathan Dash and is an independent investment advisory firm that manages private client accounts for individuals and families across America. As a Registered Investment Advisor (RIA) firm with the SEC, they are fiduciaries who put clients’ interests ahead of everything else.

Dash Investments offers a full range of investment advisory and financial services tailored to each client’s unique needs, providing institutional-caliber money management services based on a solid, proven research approach. Additionally, each client receives comprehensive financial planning to ensure they are moving toward their financial goals.

CEO & Chief Investment Officer Jonathan Dash has been profiled by The Wall Street Journal, Barron’s, and CNBC as a leader in the investment industry with a track record of creating value for his firm’s clients.