Spring Wealth Plan Review: Investment & Tax Strategies for High-Net-Worth Investors in 2025

Just as you deep clean your home each spring, your investment portfolio needs regular attention, too.

For investors with $1M+ in assets, spring offers the perfect moment to dust off your financial plan and ensure it still aligns with your goals. Let’s explore how a financial spring cleaning may help position your portfolio for potential growth and risk management. (Note to Watts Gwilliam clients: Many of these recommendations are actions we take for and with you as part of our ongoing services to you.)

Why Regular Wealth Plan Reviews Matter for High-Net-Worth Investors

Financial markets change. Tax laws shift. Family dynamics evolve. A wealth plan that worked perfectly last year might need adjustments today. Regular reviews help you stay on track while maximizing opportunities and minimizing risks.

Key Areas for Your Financial Spring Cleaning

Portfolio Rebalancing and Risk Assessment

Have market changes shifted your asset allocation? Many investors have discovered their portfolios drifting significantly from their target allocations during recent market swings. This is particularly true if you have ended up with large concentrated holdings of one or more stocks that have increased dramatically over the last few years. If this applies to your situation, you may wish to explore the following options with a qualified professional.

Action Steps:

• Compare your current asset allocation to your target. 
• Assess if your risk tolerance has changed.
• Review performance across asset classes.
• Consider rebalancing with the help of a qualified professional.

Regular portfolio reviews with a financial professional can help assess whether your asset allocation remains aligned with your long-term financial goals.

Estate Planning Updates

Tax laws change frequently, and outdated estate plans may no longer achieve your goals. For example, the 2017 Tax Cuts and Jobs Act doubled the estate tax exemption, but this provision expires in 2026 unless extended by Congress and the current administration. You may wish to speak with a qualified estate professional to update or establish your plan.

Key Considerations:

• Review trust structures and beneficiary designations.
• Update your will if family circumstances have changed.
• Reconsider gift strategies under current tax laws.
• Evaluate charitable giving opportunities.

A Caring.com survey found that nearly 25% of Americans hadn’t updated their estate plans since their origination—potentially missing significant tax savings and protection opportunities. A periodic review with a qualified estate professional can help assess whether your estate plan aligns with your current financial and family circumstances.

Tax Strategy Refinement

With tax season fresh in mind, Spring may be a great time for tax planning. High-net-worth investors might pay unnecessary taxes by not fully utilizing strategies available under the law.

Potential Tax Planning Strategies to Consider:

• Maximize contributions to tax-advantaged retirement accounts.
• Implement tax-loss harvesting with the help of a trusted advisor.
• Utilize Donor-Advised Funds (DAFs) for charitable giving.

Each investor has different needs, but all can likely benefit by periodically examining their approach to tax planning with a qualified tax professional. As an example of how it can help to be proactive, according to Forbes, some studies suggest that under certain market conditions, tax-loss harvesting may contribute to portfolio efficiency. Individual results may vary.

Integrating Recent Changes Into Your Plan

The financial landscape constantly evolves. Recent developments worth considering with a professional advisor include:

1. Inflation Concerns: While inflation has been tamed somewhat, it may remain a factor in the near term. How protected are your assets?
2. Interest Rate Environment: As rates change, your fixed income strategy may need adjustment.
3. Market Valuations: With some sectors at historically high valuations, is now the time to take profits?

Should High-Net-Worth Investors Work with a Financial Advisor?

While DIY investing works for some, many high-net-worth investors find value in professional guidance. A financial advisor specializing in wealth management can:

• Provide an objective analysis of your current strategy.
• Identify blind spots in your wealth plan.
• Suggest tax-efficient investment approaches.
• Help balance competing financial priorities.

Conclusion

Just as spring brings renewal to nature, it offers a fresh opportunity to revitalize your wealth strategy. By taking the time now to clean up your financial house, you can assess whether adjustments are needed to align with your long-term objectives and risk tolerance.

Don’t put off this important review. Schedule time with a Watts Gwilliam & Co. advisor to discuss how well your wealth plan remains aligned with your goals and whether it is adapted to today’s evolving financial landscape. As always, existing Watts Gwilliam clients are welcome to contact their advisor with any updates they may wish to share prior to their next regular review.

Disclosure
This content is for informational purposes only and should not be considered financial, tax, or legal advice. Individual circumstances vary, and tax and estate laws are subject to change. Consult a qualified professional before making any decisions. Watts Gwilliam & Company is an SEC-registered investment advisor; registration does not imply a certain level of skill or training. We act as fiduciaries, prioritizing clients’ best interests and fully disclosing any material conflicts of interest. Investing involves risk, including potential loss of principal. Past performance is not indicative of future results.