A high-net-worth individual (HNWI) is someone with a large amount of investable assets. They may be a business owner, executive, or professional who has built up a large portfolio of investments. HNWIs typically receive income from multiple sources, including investments, salaries, and bonuses. Even if they don’t work in a high-paying job, they often have a lot of money saved up from investing earlier in their lives.
The definition of HNWIs varies, it usually refers to those who have net assets of between $1 – $5 million dollars. While this may seem like a large number, it represents only about 0.7% of the global population. Most sources agree that there are around 10 million people who could be classified as such. Interestingly, while the number of HNWIs has been growing steadily in recent years, their total wealth has remained relatively static.
Pros & Cons of being a HNWI
There are many benefits to being a high-net-worth individual. HNWIs can access different investment opportunities that are not available to the average person. They may also get better returns on their investments because they have more money to invest. In addition, HNWIs can often negotiate lower fees for financial products and services.
One downside of being a high-net-worth individual is that you can become a target for fraudsters and scammers. HNWIs often have complex financial situations and require specialized advice. HNWIs typically use financial advisors to help them manage their money and grow their wealth. It is important to work with an experienced financial advisor who can help them protect their assets.
Financial advisors provide a wide range of services to HNWIs, including portfolio management, retirement planning, and estate planning. They also offer risk management services. Financial advisors work with HNWIs to create investment plans that meet their specific needs and goals. Working with a financial advisor can be a great way for HNWIs to grow their wealth and protect their assets.
For high-net-worth individuals, managing their money can be a daunting task. There are so many options for where to invest, and it can be tough to know which is the best choice for you. Diversification among different asset classes such as stock, bonds, and alternative investments (i.e. real estate, hedge funds, private equity, etc.) is a way many HNWIs reduce risk while also providing the investor possible growth opportunities. Some HNWIs choose to park their money in cash or short-term investments, which offer lower returns but are less risky than some of the other options available. Most importantly though, they need to remember to diversify their portfolio across different countries and currencies. This will help protect them from any sudden market changes.
High-Net-Worth Individuals Have Choices!
When it comes to financial planning, high-net-worth individuals have more choices than the average person. They can afford to work with a financial advisor who will help them create a customized plan that meets their unique needs. A good financial advisor can help HNWIs build a solid financial foundation for the future by making smart investment choices and avoid costly mistakes. By investing wisely, HNWIs can build for the future allowing them to grow and protect their wealth.
High-net-worth individuals should consider their goals and timeline when choosing a financial planner. If they need help creating a long-term investment plan, they may want to work with a planner who has experience in asset management. If they’re looking for help with estate planning, they may want to work with a planner who specializes in estate conservation. It’s important for high-net-worth individuals to find a financial planner they trust and feel comfortable working with.
Salish Wealth Management focuses on serving high-net-worth individuals
and helping them grow their money!
Why work with SWM?
Salish Wealth Management is a close-knit, comprehensive and personalized wealth management firm that caters to individuals and families. We take the time to get to know our clients and their unique financial needs to create tailored investment portfolios that meet their specific goals.
Salish Wealth Management
2122 Barkley Blvd Suite 200
Bellingham, WA 98226
Serving Whatcom County, San Juan County, & Skagit County, WA
Securities offered through Moloney Securities Co., Inc., Registered Broker/Dealer, Member FINRA/SIPC. Investment Advisory Services offered through Moloney Securities Asset Management, LLC, Registered Investment Adviser. Moloney Securities Co., Inc. and Moloney Securities Asset Management, LLC are not under common control or ownership with Salish Wealth Management.