Page 2 - CEG Advantage - The Super Rich Stress Test - February 2018

I NNER CIRCLE
Elite Wealth Management
Millionaire Intelligence
Lessons from Leading Entrepreneurs
F AMILY OFFICE INSIGHTS Family Office Insights
Your Best Life

The Super Rich Stress Test

Wealth Management - crown
Millionaire Intelligence - brain - target
Their Financial Plans—
Lessons from Successful Business Owners - paper / pen or easel
Insights from Family Oces and the Super-Rich - eye
and So Should You!
Lifestyles - island

KEY TAKEAWAYS:

■ ■ Testing the assumptions of a financial plan, product or service
can help confirm it’s right for you—or identify any ways it could
jeopardize your goals and put you at risk.

■ ■ High-level stress testing involves a systematic process that
examines goals, changing scenarios and costs to determine the
right course of action.

■ ■ Individuals and families don’t have to be outrageously wealthy to
benefit from a financial stress test.

The Super Rich (those with a net worth of $500 million or more) who have a family office
typically engage a sizable lineup of professional advisors to help them create and implement
financial plans. To ensure those plans are both state-of-the-art and in line with their needs
and wants, many of the Super Rich regularly “stress test” these plans.

Here’s why you should join them in that effort—even if you’re not nearly as wealthy.

Asking “What if…?”

Stress testing your financial plan can be a very smart way to help make certain that the plan
will deliver as promised. The fact is, financial plans that might look great on paper all too
often prove to be much less impactful once they are implemented. It is not uncommon for
there to be unintended consequences that can even derail your agenda.

At heart, stress testing is when you ask, “What if…?” about a variety of areas of a financial
plan you have or are considering. You probably conduct the same type of exercise in your
business when considering options for your next product launch, expansion and so on.

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