DEFINITION:
A High-Net-Worth Individual (HNWI) is someone with a significant amount of investable assets, typically excluding their primary residence. While the exact threshold varies, it often refers to individuals with assets over $1 million.
WHEN AND WHY IT’S USED:
The term HNWI is used to identify individuals who have substantial financial resources and may require specialized financial services. These individuals often have more complex financial needs such as advanced tax planning, estate planning, and tailored investment strategies. Financial institutions and advisors use this classification to offer customized products and services.
IMPORTANCE IN COMMUNICATION:
Discussing your status as an HNWI with your advisor is important for accessing specialized advice and tailored services. It allows your advisor to design investment strategies that suit the scale and complexity of your portfolio. This conversation helps ensure that you benefit from exclusive opportunities and more personalized attention.
Moreover, clear communication about being an HNWI sets expectations regarding fee structures, risk management, and the types of investment vehicles available. It builds a foundation for a trusted, long-term advisory relationship where strategies are specifically crafted to protect and grow your substantial assets.
EXAMPLES IN CONVERSATION:
“Given my HNWI status, what specialized investment strategies do you recommend?”
“How can we leverage my asset base to access alternative investment opportunities?”