Who is Considered a High Net Worth Individual (Citizen)

Christopher Zenios18/06/20193min
Who is considered as high net worth? According to Investopedia,  “high net worth individual” (HNWI) is a term established by the financial services industry to specify a person or a family who owns liquid assets that are above a certain amount. Liquid assets are investments that can be easily converted into cash, such as stocks and bonds. The exact amount someone should own to be regarded as high net worth is debatable but it is considered to be around $1 million in liquid net worth. By liquid assets, we mean anything that can be quickly turned into cash such as bonds and stocks.

Every now and then we hear terms such as super rich or high net worth individuals but does anyone actually know what these terms mean? Do we even know the amount of wealth that someone needs to possess in order to be considered ultra-rich?


high net worth individual” (HNWI) is a term established by the financial services industry to specify a person or a family who owns liquid assets that are above a certain amount.


High net worth citizens around the world

The majority of high net worth individuals come from the United States with Japan and Germany in second and third place. In fact, a global analysis showed that only 10 countries in the world host 72.5% of the global High net worth population and New York is the top city with almost 1 million high net worth citizens.

It is worth noting that countries such as Nigeria, Egypt and Bangladesh are displaying the fastest growth in high net worth populations.


Key characteristics of high net worth individuals

One of the most common characteristics in high net worth people is that they are opportunists. They are always on the lookout for new investment deals and this is also the reason why they hold a big percentage of their assets in cash ready to jump into the next bargain.

Patience is another common trait as experienced investors all know that long-term hold strategies will bring them slow but steady profits. Traditional stocks, bonds and equities are safe assets to invest in for long-term holding.

Diversity is also crucial for high net worth investors. The wider they spread their portfolio, the bigger the chances they have to strike a golden deal.


Their role in the global economy

High net worth individuals play a big role in the global economy since they hold a substantial percentage of the global wealth. Through their investments, they help boost their countries’ economies as well as support the local markets through their spending on luxury companies.

They also contribute a big part in charities and even provide funding for scholarships in schools and universities. Philanthropy is mostly supported by high net worth individuals many of which even create their own charitable foundations in order to support a range of social causes.

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at [email protected] for editorial related questions.

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High Worth Citizen is all about delivering the latest business news on finance, investment, real estate and wealth. Our readers are the rich and powerful, their associates and business partners, the global High Net Worth Individuals.