From Fortune:

2023’s U.S. economic shake-ups included rising credit card debt, decreasing housing sales, and increased living costs. HNW investors, those with liquid assets of at least $1 million, reported increased concern for the future due to issues such as market volatility.

HNW investors enter 2024 with worries about inflation, market volatility, global issues, and the impact on both their spending and investment.

Advisors believe that the number one cause of concern for investors continuing into 2024 will be inflation, while market volatility and interest rates impact uncertainty in their spending and investments.

HNW investors express concerns for managing inflation, preparing for retirement, and tax planning. The impact of market volatility and rising interest rates has prompted wealthy consumers to pull back on spending, potentially signaling a bad sign for the broader economy in 2024. Wealthier households may face tax increases if certain tax cuts expire in 2026.

HNW investors have diverse concerns, from retirement planning to market volatility, interest rates, and global issues. Financial experts say they need to consider how retirement cash flow projection aligns with their expectations and how it can be affected by potential rate cuts or rebalances.

HNW investors should also discuss with advisors how future tax laws might affect them, and consider using strategies such as charitable giving to minimize taxes. Estate tax changes have created a renewed urgency for high-net-worth clients to revisit their estate plans.

Given many ambiguous factors such as inflation, market volatility, and global issues, HNW investors with liquid assets worth at least $1 million should take certain financial planning steps for the new year, including managing inflation, preparing for retirement, and discussing tax planning. These steps include possibly adding to their asset mix, creating a retirement cash flow projection, and considering strategies such as charitable giving and gifting to trusts.



Read more: Financial experts share their high net-worth clients’ 3 biggest concerns