HNWI, also known as a High Net Worth Individual is a person whose personal assets exceed $1 million. These personal assets can include shares, stock, bonds, and other personal investments, but exclude the primary residence of the individual involved.
The term HNWI has become more prominent in recent media coverage. The United States Securities and Exchange Commission officially defines these individuals as persons who have at least $750,000 in manageable assets. These can be divided into a variety of categories including:
These are some of the primary examples that can help contribute to an individual’s wealth.
In the United States, among other developed nations, there are currently more than 11.6 million households harboring a net worth between $1 million to $ 5 million as reported by the investment banking group Spectrum Group.
Currently, there are three categories of high net worth individuals:
There are various ways in which someone can become an HNWI. The key takeaways here are to consider your current liquid assets. Individuals who can grow their current liquid assets to the value of $1 million (excluding primary residence) will be considered as an HNWI.
HNWI has somewhat of a tax advantage, thus if individuals manage their liquid assets more attentively, including retirement plans such as 401(k) – it will gradually help grow personal your wealth and net worth.
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