To be considered an “ultra-high-net-worth” person, they typically must have at least $30 million in net investable assets in their name. However, this is not really a legal definition. As the name suggests, ultra-high net worth individuals are the richest people in the world, including the billionaires of the world. These individuals are significantly above those considered to be high net worth individuals. The number of highly wealthy individuals continues to grow and the demographics of these individuals are constantly changing, according to various magazines and surveys around the world.
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What does it mean to be a very wealthy person?
While there is no legal standard for determining who is a very wealthy person (UHNWI), they are often defined as those who have $30 million or more in assets. These funds must be in investable assets, which is an important distinction to make. For example, many startup founders, business owners, and real estate investors may have more than $30 million in revenue net worth on paper, but not all of those funds may be available to invest. In turn, such persons would not be considered very wealthy under this definition.
Highly wealthy individuals are in a separate category, although there are similar counterparts, the most common of which is wealthy individual. To belong to this group, you need more than $1.5 million in net worth and $750,000 in investable assets. It is important to note that to achieve either of these thresholds, the investable assets exclude . must be debts also. So those with high amounts to invest and high debt may not reach the level they expect.
While ultra-high net worth individuals are usually defined as those with more than $30 million in investable assets, keep in mind that this is not a strict definition. Most people, countries and financial institutions will adhere to this standard, but some will have different definitions. Like a financial institution says it only works with high net worth individual clients, it’s worth clarifying with the company in person.
Who shapes the world of very wealthy individuals?
According to The Wealth Report, published by Knight Frank in 2021, there are more than 520,000 high net worth individuals in the world, an increase of a few percent from 2019. About a third of these individuals live in the US. In fact, the US is home to more UHNWIs than any other country, including all of Europe combined. China also has a large percentage of the world’s ultra-high net worth individuals. Only about 15% of the world’s UHNWIs are women.
It is worth noting, however, that other studies have found varying numbers of global ultra-high net worth individuals. For example, Barron’s reported a total of about 300,000 for 2020.
There are some famous names at the top of the world list of very wealthy individuals including all the billionaires of the world. Jeff Bezos, Bill Gates, Elon Musk, Mark Zuckerberg and Mackenzie Bezos are all very wealthy individuals. Many billionaires and other very wealthy individuals have made their fortune by starting and owning businesses. Many of these very high net worth individuals invest significantly in property.
Advantages of being a very wealthy person
Keep in mind that while most people and institutions consider ultra-high net worth individuals to have more than $30 million in net investable assets, the definition can change from situation to situation. Regardless of the standard used, however, the biggest advantage of being a very wealthy person is the fact that you feel incredibly comfortable financially and you may have much more robust investment options than your less wealthy counterparts.
It is true that very wealthy individuals can have the advantage of being able to work with certain exclusive financial institutions, but reaching that $30 million usually becomes more of a status symbol and statistic than anything else. If you are considering a major investment or working with a specific financial institution, it may be a good idea to have a conversation to discuss any special treatment or conditions that may come with being a very wealthy individual.
Very wealthy individuals are all extremely well off financially. Typically, they must have $30 million in investable assets to qualify, but different institutions and people may have their own definitions of what a high-net-worth individual is.
There are very wealthy individuals all over the world, but most of them live in the United States and most of them are older men. While high net worth individuals and high net worth individuals are also impressive financial awards, ultra high net worth individuals sit at the very top of the wealth pyramid and may have special access to certain financial institutions and investments.
Tips for effective investing
Whether you are a very high net worth individual or not, investing for the long term can sometimes require some guidance. AN Financial Advisor can be a great resource to help you figure out how to build your portfolio. Happy, SmartAsset’s free tool connects you with up to three financial advisors in your area within five minutes. Start now.
If you’re going into your investment portfolio yourself, it pays to be prepared and well researched. SmartAsset has you covered with some free online resources to help you become a pro. For example, check out our free investment calculator and start investing today.
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