What Makes Someone High Net Worth vs. Ultra High Net Worth?
By: Barry E. Haimo, Esq.
December 2, 2021
Planning for your future is something everyone should consider to protect their hard-earned assets and family’s security. But if you are a high net worth or ultra high net worth individual, financial planning is essential. Planning also may look very different depending on which bracket of net worth and wealth you are in.
There are now more wealthy individuals across the globe than ever before, and your net worth can vary enormously. While high net worth people tend to have liquid assets over one million dollars, ultra high net worth individuals have liquid assets of $30 million and up.
Let’s examine these two categories of assets and the unique financial needs of incredibly wealthy individuals.
Defining High Net Worth
Generally, net worth is calculated by determining the total amount of your assets and subtracting any liabilities. But high net worth individuals or families are those with liquid assets (not including residences, goods, etc.) totalling one million dollars or more.
Within the bracket of high net worth individuals (HNWI), there are sub-categories of wealth, such as very high net worth. Anyone who qualifies as high net worth will require specialized asset protection.
But once a person has thirty million dollars or more, they are usually considered to be an ultra high net worth individual (UHNWI).
So What Makes Someone Ultra High Net Worth?
As stated above, an ultra high net worth individual (UHNWI) has liquid assets of $30 million or more. While less common, these uber rich people are growing in numbers, especially during the COVID-19 pandemic. In the year 2020, this demographic of UHNWIs increased by thousands. Their combined wealth now equals 35.5 trillion dollars world-wide.
Investors at that level of wealth often invest in more non-traditional ways and can spread their wealth out across global markets, since their wealth affords them more connections.
Benefits of Being a High or Ultra High Net Worth Individual
The higher your net worth, the more in demand you are by financial advisors. You should have a mutually beneficial relationship with a good financial advisor. They earn some of your wealth and can offer you special services and benefits, depending on your tier of assets.
Advisors often manage the wealth of their high net worth clients with more specialized care and precision. And being HNW or UHNW can mean access to unique investment opportunities on and off the stock market that are only available to individuals above a certain bracket of liquid asset.
Meeting the Needs of Incredibly Wealthy Families
So what are some of the unique needs of incredibly wealthy families? And how do they vary depending on whether someone is high net worth versus ultra high net worth? Below are some of the considerations and needs of these families based on their wealth:
High Net Worth Family Needs
- A wealth manager who can oversee their investments
- Standard investment support in CDs, real estate properties, bonds and equities
- Tax planning and minimization as it relates to trusts (irrevocable, revocable and charitable)
- Support with life insurance
- An attorney who can assist with asset protection and estate planning
Ultra High Net Worth Family Needs
- A team of wealth managers who specialize in ultra high net worth cultivation and protection
- More specialized investment support in properties, bonds and equities but also worldwide portfolios, private equity, hedge funds, and unique investments (art, cryptocurrencies, collectibles, etc.)
- Tax support and mitigation planning as it relates to private foundations, trusts and family limited partnerships
- Specialized support with life insurance
- An attorney who can assist with and specialized asset protection and estate planning
Planning Ahead
Becoming a high net worth or ultra high net worth individual requires a dedication to years of excellent investments, financial planning and debt and tax minimization. If you are already fortunate enough to be one of these individuals, congratulations!
Now is the time to ensure that your hard earned wealth is protected for years to come with an asset protection plan that best fits your unique needs. With great wealth comes great care and consideration and Haimo Law’s unique and proven process can help you achieve your estate planning goals. Call us today to get started.
Author:
Barry E. Haimo, Esq.
Haimo Law
Strategic Planning With Purpose®
Email: barry@haimolaw.com
YouTube: http://www.youtube.com/user/haimolawtv
YOU ARE NOT OUR CLIENT UNLESS WE EXECUTE A WRITTEN AGREEMENT TO THAT EFFECT. MOREOVER, THE INFORMATION CONTAINED HEREIN IS INTENDED FOR INFORMATIONAL PURPOSES ONLY. EACH SITUATION IS HIGHLY FACT SPECIFIC AND EXCEPTIONS OFTEN EXIST TO GENERAL RULES. DO NOT RELY ON THIS INFORMATION, AS A CONSULTATION TO UNDERSTAND THE FACTS AND THE CLIENT’S NEEDS AND GOALS IS NECESSARY. ULTIMATELY WE MUST BE RETAINED TO PROVIDE LEGAL ADVICE AND REPRESENTATION. THIS INFORMATION IS PROVIDED AS A COURTESY AND, ACCORDINGLY, DOES NOT CONSTITUTE LEGAL ADVICE.
