WHAT IS MEANT BY ULTRA HIGH NET WORTH?
Ultra high net worth is a term that describes people with at least $30 million in liquid investable assets. This can include cash, stocks, mutual fund investments, real estate, and even jewelry.
But what separates these wealthy individuals from the rest of us? This article will take a look at three distinct characteristics that set ultra high net worth people apart from everyone else.
SAVINGS STRATEGIES FOR ULTRA HIGH NET WORTH
When you’re ultra high net worth, it’s not just your money that matters, but how you use it. UHNW often prioritize their wealth over other things like prestige or status, and they’re more apt to make decisions that will ensure their family’s financial security over other interests such as leisure or philanthropy.
Whether they’re self-made or inherited, achieving this status takes a lot of hard work and discipline. Often, they must save a multiplier of 25 times their annual expenses to be able to retire in comfort and to pass on generational wealth.
This is why advisors who serve UHNW clients need to have a strong understanding of their unique financial picture and lifestyle goals. They can then better help them to achieve their objectives withoutgettingdistractedbyotheropportunities. Investinginyourprofessionaleducationisa great way to prepare for serving this client segment, as is seeking out more senior advisors to partner with and learn from.
BREAKING THE RULES FOR FINANCIAL SUCCESS
Ultra high net worth is those who have $30 million or more in liquid assets. They tend to have a more diverse portfolio, especially since their wealth gives them access to specialized investments.
They also understand the basics of making money work for them, and they know how to avoid common investing mistakes. For example, UHNW knows that concentrating their portfolios with investments only in the United States and Europe may overlook some investment opportunities in emerging markets.
UHNW are different than people who have a high net worth, and they’re often more innovative in their thinking. They don’t let rules or other people tell them what they can and cannot do. This allows them to make more creative decisions and achieve their financial goals. Maeen Shaban is a Wealth-X research analyst and lead author of its main thought leadership reports, including the World Ultra High Net Worth Report. He is an expert on wealthy populations and the growth, trends, and issues that affect them across the globe.
BEYOND STOCKS AND BONDS
In contrast to thosewith a moremodest net worth, ultrahigh net worth tendsto focus theirattention on investment opportunities that will appreciate. This may include investments in business and real estate properties as well as diversified financial portfolios that incorporate stocks, mutual funds, and alternative assets such as art or gold.
According to Forbes, a typical ultra high net worth owns more than $25 million in investable assets. These assets typically include cash, retirement accounts, stocks, and bonds.
However, these also own non-liquid assets such as family businesses or properties. This significant level of complexity often requires the support of a significant professional team, including attorneys, CPAs, and insurance providers. This type of specialized expertise can make it difficult for newer wealth managers to serve UHNWI clients, as they are often not experienced enough to understand their unique needs and concerns.
