High Net Worth Individual (HNWI)

The term high-net-worth individual (HWNI) refers to anyone with over $1 million in liquid assets, like cash and stock! There might be a High-Net-Worth Individual hiding in your remote friends and family.

3 min read

You’ve probably heard the term before, but do you know what criteria someone has to meet to legally be a “High-Net-Worth Individual”? There might be a High-Net-Worth Individual hiding in your remote friends and family.

The term high-net-worth individual (HWNI) refers to anyone with over $1 million in liquid assets! A liquid asset = cash and stock.

Net Wealth of High-Net-Worth Individuals (HNWIs)

The exact amount changes depending on the bank and region, but in the US, HNWI usually means someone with 7 figures in liquid assets. This doesn’t include things like houses, fine art, and anything that can’t quickly be turned into spendable cash.

How rich are High-Net-Worth Individuals, really?

Well, a HNWI wouldn’t live life like a Kardashian, or generally be able to purchase a yacht or a lovely villa in France. Instead, a High-Net-Worth Individual is usually pretty comfortable and will be able to provide for their families.

In more expensive living places like major cities such as New York City and California, the bar for a high-net-worth individual may be higher, since studio apartments may start at $1 million in various neighborhoods!

And for people with children, $1 million in liquid may quickly go away. The Washington Post estimated a $310,000 total cost to raise a child from birth to 18 the average middle-income family, with the Gothamist reporting a $500,000 cost for a child in NYC! And neither of those stats consider the price of college, where top institutions charge $60k-70k per year.

A high-net-worth individual may be able to afford a nice car though and have a comfortable plan for paying off mortgages.

So, even if being an HNWI doesn’t mean they have yacht money, there are a few serious benefits, beyond the wealth. . .

Wealth Building Benefits for HNWIs

Some people say that once you make your first million, the next million is easier. The government certainly supports this saying with specific investment opportunities that only HNWIs can access.

Money-Saving Deals

A high-net-worth individual will often qualify for:

  • Reduces fees on loans, mortgages and other financial services
  • Discounts and exclusive, lower rates
  • Special event and service access

ToMoney-Making Deals

In order to protect people from debt, the government restricts access to certain financial specificr. Just like the day trading legal minimum of $25k, you must be a designated high-net-worth individual to:

  • Invest in startups
  • Participate in an IPO (initial public offering) financing round

The investment methods above are extremely risky, but risky turn can be significant. Imagine being able to invest in Facebook, Google and Apple before public markets ever could! Your returns would be significant.

Levels of High-Net-Worth Individuals

Here are the specific levels if you want to know everything:

  1. Sub-HNWI = $100,000+ in liquid assets
  2. HNWI = $1 million+ in liquid assets
  3. Very-HNW = $5 million+ in liquid assets
  4. Ultra-HNWI = $30 million+ in liquid assets

So, famous Tech CEOs and Billionaires would be far beyond the Ultra-HNWI grouping, but your favorite influencers may float around “Very” and “Ultra”

Popular Influencers & Their Net Worth Status

  1. Emma Chamberlain ($90 million) - Ultra
  2. Logan Paul ($45 million) - Ultra
  3. Charli D’Amelio ($20 million) - Very
  4. Addison Rae ($15 million) - Very
  5. Olivia Rodrigo ($5 million) - Very
  6. Josh Richards ($2.2 million) - Standard

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