Very High Net Worth Individuals Statistics, being referred to as a millionaire used to imply that you were wealthy. A millionaire nowadays sounds almost charming. High-net-worth individuals are the new phrase for wealthy people (HWNI). This clinical-sounding term is widely used in the financial business to describe someone or a family with a significant amount of wealth.

A person with liquid assets worth $1 million or more are considered high-net-worth. There is no formal or legal definition of HNWI, although it is commonly considered to contain solely liquid assets. Money stored in bank or brokerage accounts—and excludes assets such as a primary residence, collectibles, or durable goods.

What Is a High-Net-Worth Person?

What Is a High-Net-Worth Person?

Very High Net Worth Individuals Statistics – Professionals in the field of finance divide wealth into three categories:

  1. High-net-worth people (HNWIs) are individuals or families with liquid assets worth between $1 million and $5 million.
  2. Very-high-net-worth people (VHNWIs) are individuals or families with liquid assets worth between $5 million and $30 million.
  3. Ultra-high-net-worth people (UHNWIs) are individuals or families with liquid assets worth more than $30 million.

High-net-worth families demand additional services from financial advisors and wealth managers due to their significant holdings. Investment management and tax guidance, as well as assistance with trusts and estates and access to hedge funds and private equity firms, are among the financial services available to HNWIs.

Given that wealth managers often receive a proportion of the overall assets they manage. The more liquid assets held by an individual or household, the more appealing the HNWI becomes to them. Furthermore, banks and investment management businesses frequently set account minimums that qualify HNWIs for more personalized, specialized client services.

How to Work Out Your Net Worth?

How to Work Out Your Net Worth

Want to see if you’re a high-net-worth individual? It’s easy to figure out your net worth. Simply said, the entire amount of your assets minus all of your liabilities is the formula. Your net worth is the result of these calculations.

Assets – Liabilities = Net Worth

Consider a family with $1 million in assets. Which includes home equity, vehicles, bank account balances, collectibles, and investment accounts. The household’s liabilities exceed $250,000. They include an unpaid advance, outstanding auto loan sums, student loan debt, credit card debt, and alimony. The net value of our hypothetical household is $750,000.

Remember that only liquid assets are evaluated when calculating whether or not someone is a high-net-worth individual.

Advantages of a High Net Worth Individual

Advantages of a High Net Worth Individual

According to, the advantages that come with being wealthy are the number one benefit of being a high-net-worth individual.

  • Different sorts of financial counselors treat you like royalty: The more wealth being managed. The more convoluted the situation becomes—and the more attention the HNWI receives as a result.” Additional concierge-level services can be justified for a higher-net-worth investor that would not be cost-effective or meaningful at lesser levels of wealth,” says Mark Bonnet, CEO of Scottsdale, Arizona-based Core Path Wealth.
  • Client advantages are significant: Many financial investment organizations follow in the footsteps of airlines by “tiring” their customers based on assets under management rather than flying activity. Money managers may provide HNWIs with a dedicated financial advisor, and reduced fees. Access to conferences and events, as well as tickets to sporting, theatrical, and entertainment events, among other motivations.
  • A large net worth opens many doors: HNWIs receive more account attention, but they also have access to a variety of possibilities not available to Main Street investors. “For example, Morgan Stanley became the first big American bank to announce plans to allow clients to invest in one of three Bitcoin funds it would be launching last month,” says Richard Gardner, CEO of Scottsdale-based Modulus. “However, the offering will be limited to those with over $2 million in assets under control.”

What Does It Take to Become a High-Net-Worth Individual?

A healthy dosage of financial discipline is required to become an HNWI. In most cases, a person achieves high-net-worth status by consistently investing and reducing household debt.

“Most of the high or ultra-high-net-worth individuals I see have sold a business and had a major liquid event in their lives”, says McClain Culver, a wealth strategy specialist at UBS in Atlanta.

What Does It Take to Become a High-Net-Worth Individual

Very High Net Worth Individuals Statistics, Don’t worry if you’ve never experienced a major liquid event. Even if you don’t have a lot of money right now. You can achieve a high net worth with focus and the appropriate investing approach. Following these two approaches is crucial:

1: Make the most of your time

The bigger the return potential, the sooner you start investing and the longer you stay involved, thanks to compounding returns.

Compound interest is a phenomenon that allows you to grow exponentially greater sums over extended periods. That’s because each time you earn interest or returns. The base amount used to calculate future interest or returns increases. As a result, a larger engine of wealth production emerges.

Very High Net Worth Individuals Statistics, While the stock market may appear to be somewhat turbulent in the short term. It has consistently given great long-term returns on investment. Take, for example, the S&P 500 index. Which has delivered average annual returns of around 10% over the previous 100 years, despite wars.

2: Become a Consistent Investor

Setting up a systematic investment approach and making monthly contributions can result in a significantly good investment outcome over time. For example, assuming a 10% annual return on investment. A 25-year-old needs to save $158 every month to have $1 million at 65.

“At 35, the number is $442 each month. So the advantages of investing early are significant”, Bonnet explains. “Monthly contributions to a 401(k) or Roth IRA are an excellent example of gaining HNWI status gradually and consistently”.