Analysis of family wealth risk

The closer you are to wealth, the closer you are to risk. Wealth is often measured by risk. When many family members seek to cooperate with wealth management institutions, their knowledge still remains at the rapid growth of wealth, such as the requirements that increase the rate of return on investment through speculative opportunities and high-risk projects. For how to create wealth, each client usually has its own methods and strategies. The common point is to put all energy and financial resources in a business or a field, and make use of the time, place and people, so that wealth can be accumulated quickly. But when they focus on wealth acquisition, they also ignore the risk of wealth loss. In fact, all resources concentrated in a certain field or one or two business projects have huge risks. Generally, opportunistic risks are more suitable for wealth creation, but it is not conducive to wealth preservation. However, family wealth is affected by changes in internal and external factors beyond the control of politics, economy, market, policy, law, taxation, investment, personal life, etc., and various assets will also face different risks, including:

With reference to the research of various institutions around the world, we have summed up a universal lesson that we cannot use the thinking of creating wealth to manage and preserve wealth. It is not easy to create wealth, and it is even more difficult to maintain wealth. Families face numerous unavoidable risks, which need to be managed through systematic thinking and tools. To achieve a long-lasting business and to pass on wealth over generations, taking a conservative approach may be a good idea. There is a balance between "offensive" and "defense", but "defense" is always in the first place. Only by defending can you be better offensive. For example, if you simply or overemphasize "defense" to preserve your assets, you will only replace one risk with another, because there is no chance without risk. Facing risks objectively and rationally is particularly critical in wealth preservation and succession:

The risk is not terrible. The terrible thing is that many families are unwilling to admit and face the risks. Especially after experiencing success, most families with wealth are usually unprepared for a sudden turning event during or after long periods of prosperity. In addition, acknowledging risk means acknowledging the uncertainty of the future and the lack of control over uncertainty. For many families that have successfully created wealth, it is difficult for them to accept and deal with assets that have a strong emotional connection. Because these are the sources of their past wealth and the assets that prove the success of their operations, this is the most difficult initiative in the planning of risk management. Family decision-making will be affected by emotions. Acknowledging and facing risks is often linked to the negative emotions they need to accept. Although in the long run, the occurrence of a crisis will help the family to have the lessons of risk to better maintain its wealth, forcing the family to reassess its wealth structure and decision-making procedures, etc. The fear and anxiety experienced by many families may make them more motivated to make major changes in a shorter time. However, most of these incidents often cost too much to cultivate risk awareness, and perhaps many families will never be able to return to their former glory.

Insurance Planning

Insurance is an effective risk management tool and an important component of wealth transfer for high-net-worth individuals. We collaborate with multiple international insurance brokerage firms, using a client-focused approach that considers actual circumstances to objectively and accurately select high-quality insurance products from around the world. We customize comprehensive protection plans for individuals and families, including investment savings and legacy plans, to meet the diverse needs and life goals of families at different stages. Our aim is to help you achieve family health protection, wealth preservation, value retention, appreciation, and transfer.

Large life insurance policy configuration planning

At the same time, through our cooperation with a number of private banks, we search for preferential policy loan conditions for our customers. Through bank financing solutions for life insurance policies, we help customers obtain high-value life insurance protection with a small amount of funds, thereby improving the liquidity and utilization rate of funds.