Have you ever wondered who high net worth individuals are? Or you’ve been looking for the S.I Unit to determine who is a high net worth individual. This is a must-read for you.
The term HNWI is used in financial sectors. It is used to describe people who have up to a million dollars in liquid assets.
The term HNWI is mostly used in the financial services industry. This allows financial service providers to offer their HNWI clients more exclusive services and benefits.
The Securities and Exchange Commission (SEC) provides the closest thing to a standardized definition of an HNWI. Defining one as having a net worth of at least $1.5 million or $750,000 in investable or liquid assets.
Liquid Net Worth Meaning
Liquid net worth is the amount of money you have leftover after subtracting your liabilities from your liquid assets. For example, if you have a negative net worth, you may want to wait before taking on more debt.
Check Out, What is Considered Wealthy in 2022
How to Determine Wealth
A widely accepted evaluation is that the value of the property you own must be close to $2 million. This must exclude what you owe.
However, you may have a different definition of wealthy. Some people consider themselves wealthy if they have a net worth of $1 million. Whereas others do not consider themselves wealthy until they have a net worth of $5 million.
Your expectation determines a lot. For example, the average amount most people said they’d need for financial happiness was $1.1 million. You may decide that achieving financial happiness is enough to make you wealthy.
The bottom line is that once you have a positive net worth. It’s entirely up to you how high that net worth needs to be in order to feel wealthy. You can easily see if you’ve met that goal by tracking your net worth.
High Net Worth Individuals
Racking up liquid assets enough to be considered an HNWI is quite remarkable. With the right financial advisor and money management, you can get there. This is a list of HNWIs.
1. Pedri — $11 million
Pedro González López was born November 25, 2002. He is a Spanish professional footballer who plays as a central midfielder for the club Barcelona and the Spain national team. He is one of the most promising prospects in the world of football.
His rise to the spotlight came after he proved himself to be an integral and mending part of both a struggling Barcelona and Spanish national team.
He is prized for his exceptional movements on the ball and his quick feet. The Tegueste native has been likened to Andres Iniesta and current team coach, Xavi.
2. Lil Baby — $5 million
Dominique Armani Jones (born December 3, 1994), better known as Lil Baby, is a rapper from the United States. Following the release of his mixtape Perfect Timing in 2017, he rose to mainstream fame.
His distinct rap voice, smart punchlines and seemingly unending flow make Baby one of the best of his genre.
Baby’s talent has not been overlooked by other great rappers. He earned his spot on Drake’s Certified Lover Boy album and Kanye’s Donda. His performance was as sterling as ever.
3. Giannis Antetokounmpo — $70 million
Giannis Sina Ugo Antetokounmpo was was born Adetokunbo December 6, 1994. He is a Greek professional basketball player for the NBA’s Milwaukee Bucks (NBA). Antetokounmpo’s nationality, as well as his size, speed, and ball-handling abilities, have earned him the moniker “Greek Freak.”
As one of the Bucks’ highest-paid players, Giannis is expected to bring a lot into the court. He doesn’t disappoint as his height and speed are strengths that place him above opponents.
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The Benefits of Being an HNWI
There are benefits to being a high net worth individual, similar to airline frequent flyers. However, HNWIs typically receive personalized “white glove” service and treatment from financial service providers.
Access to a dedicated wealth advisor and special services such as trust and estate planning.
There are also invitations to special conferences and events, reduced fees on financial services. Special access to services and advisors during the evening and weekend hours are examples of benefits.
HNWIs participate in investments that are not available to ordinary investors. Notably, hedge funds and private equity, as previously mentioned. They may also be able to get in on the ground floor of initial public offerings, or IPOs.
How to Become a High-Net-Worth Individual
For most people, becoming an HNWI necessitates a long period of financial discipline.
This includes careful saving, wise investing, and responsible use and management of personal debt. As your income increases, you can increase the percentage and amount you save.
The sooner you begin saving and investing, the longer you will have to benefit from compounding returns. You earn money on initial investments through compounding. And also on the money that the investment earns. This can help a great deal.
Also, make an effort to keep your debt under control. This includes particularly high-interest consumer debt such as credit cards. Every dollar spent on debt repayment is a dollar not saved or invested in order to increase your net worth.
We hope this article has been able to answer your questions on High Net Worth Individuals. Make sure to share to your preferred social platform.
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