The first step in our wealth structuring process is to decide how much to partition the client's wealth.
Partitioning the client's wealth simply means breaking a lump sum of wealth into smaller pieces so that each piece can be placed into separate financial instituitions, countries, currencies, and ownership structures. The overall goal is to reduce the probability of a catastrophic loss of the total wealth by reducing the probability of the loss on each piece.
The number of partitions to create depends on the initial amount of wealth, the client's risk tolerance, and the client's investment goals.
Too few partitions and the wealth is vulnerable to risks.
Too many partitions and the wealth is too costly to manage.
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