HomeDictionaryHigh-Net-Worth Individual

High Net Worth Individual

A high net worth individual (HNWI) is someone with substantial financial assets and wealth, typically over $1M. The specific threshold to be classified as an HNWI may vary depending on the financial institution, country, or context, but generally, it refers to those who have accumulated a significant amount of wealth beyond what is considered typical for the average population.

What You Need To Know

HNWIs often possess diverse investment portfolios, real estate holdings, business interests, and other valuable assets. They have a considerable net worth, which is calculated by subtracting their total liabilities (debts and obligations) from their total assets.

HNWIs have unique financial needs and often require specialized financial services, investment strategies, and wealth management to preserve and grow their assets. They may work with private banks, wealth management firms, or financial advisors who specialize in serving high net worth clients to achieve their financial goals and protect their wealth.

As a demographic, HNWIs play a significant role in the economy and financial markets. They are major contributors to investments, philanthropy, and economic growth. Additionally, they are often subject to specific tax regulations and financial laws that may differ from those applicable to individuals with less money.