Asset & wealth planning

Wealth planning is a complex task but you can make it simple with the help of our professional advisors.

Every one of us has goals and dreams, but often we make mistakes and are not able to identify and organize them. This can be a first and important step. Before planning out the path to take, you have to decide on the final destination. Without it, planning is useless.

A plan is similar to a map. When following your plan, you can always see how much you have progressed towards your goals and how far you are from your destination. Knowing where you are is important for making decisions on where to go or what to do next.

One more reason for why you need planning is the famous 80/20 Rule. It states that for unstructured activities 80 percent of the effort provides less than 20 percent of the valuable outcome. Either you spend too much time on deciding what to do next or you are taking many unnecessary and inefficient steps.

The following guides will give you some important tips on wealth planning.

You will have your own Private Banker who will get to know your needs and wishes in order to guarantee the results you expect.

Discover your options on asset & wealth planning

  • Get professional advice

    Wealth planning is a complex task but you can make it simple with the help of our professional advisors. They will help with financial strategies not only for you, but also for your family and your businesses by advising you on the accumulation, preservation and transfer of wealth throughout the various stages of your life.


    Professional help will get you the following benefits:

    • A big international team of educated and experienced professionals at your disposal.
    • A holistic approach to all your individual aspects and wishes.
    • Professional software to analyse and offer you appropriate and suitable solutions.
    • Professional software to modify, analyse and rebalance your investment portfolio.
    • Access to macroeconomic research and single instrument recommendations.
  • Diversify your assets

    It is impossible to protect yourself from all types of risk, but following some simple rules you can significantly reduce them. An efficient way to do so is by diversifying. As an investor, you confront two major types of risk – diversifiable and undiversifiable. The latter must be taken as is. It is called “market risk” or “systematic” risk. It is type of risk associated with every company without exception. Examples of such risks are political instability, inflation, currency exchange rates etc. However, diversifiable risk (or “unsystematic” risk) can easily be reduced. These are your main diversification options (ideally an investor should use them all):

    • The minimum number of direct investments (stocks, bonds etc.) must exceed 15-18 units. Not applicable for investment funds or index funds, since each of these consists of a number of securities.
    • Regional diversification. Despite globalisation, regions develop unequally and may by in different stages of the economic cycle. Betting on only one region or economy (North America for example) an investor will be more dependent on it and will not reap benefits from economic success in other regions.
    • Industrial diversification. There are many types of industries (extracting raw materials, manufacturing, service, high tech etc.) and these develop at an unequal pace in different stages of the economic cycle. It is good to include several different industries in your portfolio in order to reduce dependence of any one of them.
    • Asset class diversification. It is all about correlation. The value of some asset classes changes in different directions over time or has weak correlation. Including different asset classes in your portfolio (stocks, bonds, commodities, real estate etc.) reduces volatility and risk.
    • Diversification by liquidity. Accumulating wealth is a long process, but you still have to think about your short-term goals and unexpected expenditures. If you have only real estate in your portfolio, you may find it difficult to finance some urgent needs.
    • Legal diversification. It is good to accumulate your wealth through different entities. By dividing your wealth between personal and legal entities you may be more flexible in terms of taxation, liquidity etc.

    How does diversification work? Let’s look at an example of an undiversified portfolio. Let’s say you have a portfolio of only German airline stocks. If it is publically announced that German airline pilots are going on strike and all flights are cancelled, the share prices of that airline will drop. Your portfolio will experience a noticeable drop in value.

  • Taxation

    The Lithuanian (tax system is quite simple and transparent, but there are some tips investors should keep in mind.

    Tax liability arises at significantly different moments for legal and private persons. A legal entity (legal person) may have a portfolio of securities, buy and sell them and not be obliged to pay income tax on them until it pays dividends to its owners.

    A private person will have to pay income tax immediately after selling any security with profit. In order to avoid the inconvenience private persons have to deal with, you can use a so-called investment account. It allows you to postpone the income tax liabilities of certain financial assets.

  • Financing your retirement

    The term “retirement” does not refer only to a country-specific pension system. It is a much larger task. It involves long-term investment strategies, transfer of business, inheritance planning, and planning income sources for retirement.

    Contact your Private Banker to get additional information

Your business is your asset

Our clients are business owners and top managers of companies. They are professionals in their own fields and they know what they do. Seldom can we add more value there. We want to contribute where we can - to remind you and help you think about the day after tomorrow.

Changing generations
Businessmen are like chess players; they are several moves ahead of the game and plan their next steps carefully. They know what they do on a daily basis. But have they all thought about legacy planning and how to hand over their business and other assets to the next generation? To plan for it wisely, we have professional partners and we want to share their expertise with you.

Selling your business
Leaving a business that you have spent years or even a lifetime building is not easy. Don’t forget to think ahead –preparing to hand over your business takes time.

It’s always a good idea to ask professional help to be sure that all aspects with significant consequences are covered and you are prepared when you do act. Ask your Private Banker for more.

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