High-net-worth

Delineation of ranges of wealth are often used in wealth management to help define subgroups or target services. Definitions of wealth levels typically focus on “investable net worth, exclusive of primary residence,” since the value of one’s residence may contribute significantly to net worth in this range. Investable net worth also may exclude illiquid but very significant assets such as the value of a privately held business. Many wealth management firms prefer to distinguish a client’s overall net worth (including business ownership) from only those investable assets available for management by the advisory firm.  HNW is sometimes used to denote a minimum level of investable assets that qualifies a client for the purchase of certain investments. 

Although there are no official standards for different ranges, there are common terms representing similar groups. The mass affluent range is often defined as the $1 million USD – $5 million USD range (sometimes called “the millionaire next door” after the 1998 book of the same name). HNW is the next level up, from $5 million USD to either $30 million or $50 million. Capgemini, a wealth consulting and research firm, also defines this level as “mid-tier millionaires.” Ultra-high-net-worth (UHNW) is the highest level, extending from at least $30 million into the billions. Note that these ranges and thresholds have been established since at least the 1990s when a $1 million USD net worth represented someone at the 99th percentile economically in the US. With inflation and demographic changes, these levels may no longer apply and may need to be updated.

The terms high-net-worth individual (HNWI) or high-net-worth family (HNWF) denote the holder(s) or beneficiary(ies) of this wealth.