Glossary > Finance > Financial Advisory > Wealth Management

High-net-worth Individual

A high-net-worth individual is someone with substantial financial assets and investments, usually exceeding a certain threshold, that enable them to access specialized financial services and opportunities.

Example #1

An individual who owns multiple properties, a diverse investment portfolio, and has significant savings and retirement accounts.

Example #2

A successful entrepreneur with a substantial stake in a profitable business, substantial investments in stocks and bonds, and multiple real estate holdings.

Misuse

Misuse of a high-net-worth individual's status can occur when financial advisors prioritize their own interests over the client's, pushing unnecessary products or services for personal gain. This is harmful as it can lead to the client making unsuitable investments or decisions that do not align with their financial goals.

Benefits

The benefit of being a high-net-worth individual is the access to tailored financial advice, sophisticated investment opportunities, and specialized services that can help grow and protect their wealth effectively.

Conclusion

It is crucial for high-net-worth individuals to choose reputable, transparent financial advisors who prioritize their clients' interests and financial well-being above all else. By being informed and vigilant, individuals can avoid falling victim to potential misuse of their status and fully enjoy the benefits it can offer.

Last Modified: 4/30/2024