What High-Net-Worth Investors Should (and Shouldn’t) Do
From luxury SUVs to everyday groceries, it’s hard to ignore the reality: prices are up. Even for those who are financially secure, the experience of spending more for the same — whether it’s a family vacation, a new appliance or your weekly trip to Whole Foods — can be frustrating and even unsettling.
At a time when even well-off households are asking why everything is so expensive right now, it’s worth taking a step back. This article explores how to think clearly and plan wisely in the face of rising consumer costs.
1. Inflation Hits Everyone — But It Doesn’t Have to Hit Your Financial Plan
Even if your net worth is $2 million or more, you still feel the squeeze when prices jump across the board. The difference is that you have options. While rising costs can be inconvenient, they don’t have to threaten your financial independence if you’re thoughtful and proactive.
At this level of wealth, the challenge isn’t about affording a $10 carton of eggs — it’s about maintaining financial efficiency, protecting long-term purchasing power and staying intentional about how you spend and invest.
2. Short-Term Price Surges vs. Long-Term Purchasing Power
There’s a difference between a temporary spike in prices and a long-term erosion of wealth. While inflation numbers have been elevated, history shows these cycles are rarely permanent.
That said, persistent inflation — even at lower levels — can silently chip away at your wealth over decades. That’s why your portfolio should be positioned to not just weather inflation but outpace it.
Assets like equities, real estate and inflation-protected bonds (like Treasury Inflation-Protected Securities) all play a role. If you’re sitting on excess cash due to uncertainty, now may be the time to reassess how that money is working for you — or if it’s working at all.
3. Luxury, Lifestyle and Intentional Spending
Many of our clients aren’t worried about running out of money — but they are asking questions like:
- “Am I overpaying right now?”
- “Should I wait to buy that car or remodel the house?”
- “Is this the best time to book a luxury trip or upgrade my tech?”
These are valid questions. The key is to make decisions based on value, not emotion. If a purchase aligns with your lifestyle goals and long-term plan, it’s okay to move forward — even if the timing isn’t “perfect” from a market perspective.
But where there’s flexibility, it may make sense to be selective. A discussion with your advisor can help you weigh the trade-offs.
4. What You Can Control (and What You Should Let Go)
You can’t control inflation, interest rates, or supply chain disruptions — but you can control:
- Your asset allocation
- Your spending habits
- Your tax strategy
- Your liquidity reserves
- Your estate and gifting plans
These are the levers that aim to manage your wealth over time. Staying focused on them — not on stressful headlines — is how high-net-worth families stay resilient and ahead of the curve.
5. Now Is a Good Time to Reassess Your Strategy
Periods of higher prices often create opportunities for review. Ask yourself:
- Is my portfolio aligned to preserve and grow wealth in this environment?
- Are my cash reserves too large and being eroded by inflation?
- Are there tax strategies that can help offset rising costs?
- Are lifestyle expenses creeping higher in ways that warrant rebalancing?
A 60-minute check-in could be a beneficial part of your quarterly strategy.
6. Tariffs and Trade Tensions: The Invisible Price Drivers
Another force behind rising prices — particularly for imported goods like electronics, appliances and automobiles — is the increased use of tariffs. These are often framed as tools of foreign policy, but their impact is felt directly by consumers and businesses alike.
Tariffs function as a tax on imported goods, which means higher input costs for manufacturers and, ultimately, higher sticker prices for buyers. Whether it’s a European car, a smartphone assembled in Asia or construction materials sourced internationally, the cost to bring these products to U.S. markets has gone up — and consumers often foot the bill.
For affluent households who tend to purchase premium, global or custom products, the effect can be more pronounced. Being aware of these macroeconomic forces can help you better understand pricing dynamics and avoid overpaying simply out of urgency.
Increased prices reinforce the importance of flexibility. If a major purchase can wait — or if there’s a domestic alternative — it may be worth adjusting your timeline or exploring options less affected by trade policies.
Final Thought: Confidence Over Concern
Having wealth doesn’t mean ignoring cost increases — it means you have the luxury to respond with intention instead of reaction. Inflation may be frustrating, but it’s also cyclical, and you’re better positioned than most to ride it out with confidence and clarity.
As always, our role isn’t just to manage our clients’ money — it’s to help them feel secure, informed and in control of their financial life, no matter what the headlines say.
