An Ultra-High Net Worth Individual (UHNWI) is what?
People having investable assets of at least $30 million are considered ultra-high net worth individuals (UHNWI). They are among the richest people on earth and are in charge of a huge portion of the world’s wealth. Even though it is a tiny group, it is expanding. According to Knight Frank’s The Wealth Report, which was published in 2021, there were 521,653 people worldwide in 2020, an increase of 2.4% from 2019. By a wide margin, the U.S. has the most UHNWIs in the entire world.
People with investable assets of at least $30 million are considered ultra-high net worth.
KEY LESSONS
The majority of UHNWIs in the globe reside in the U.S.
Men 50 years of age or older make up the majority of the ultra-wealthy people in the globe.
Recognizing People with Ultra-High Net Worth (UHNWIs)
180,060 or more of the UHNWIs in the globe reside in the U.S. That’s more than two and a half times higher than China, which came in second with 70,426 cases, and more than all of Europe put together with 151,665.
According to Knight Frank, the ranks of the ultra-wealthy will increase by 27% between 2020 and 2025. Africa will experience the second-highest growth rate (33%) after Asia (39%). By 2025, the U.S. will still have the most UHNWIs after gaining 24% more super-rich people.
According to a 2020 study by the Milken Institute, men over 50 account for the majority of those who own 85% of the wealth among the ultra-high net worth. Only one in seven people are women, although this proportion is growing.
Women make up roughly one in five of individuals under the age of 50.
Liquid assets over a particular amount are typically used to describe individuals with ultra-high net worth. Although $30 million is usually the benchmark, the specific amount may vary according on the financial institution and the location.
Lists of UHNWIs
The majority of the world’s super-rich people are self-made. This is clear from Forbes’ yearly compilation of the world’s wealthiest individuals. The publication ranks the daily worth on its platform for measuring wealth on its list of the World’s Real-Time Billionaires. When relevant stock markets are open, “the value of individuals’ public holdings are updated every 5 minutes (there will be a 15-minute delay for stock prices),” according to the website.
As of July 12, 2021, Amazon.com founder Jeff Bezos is ranked first in Forbes’ dynamic list. Elon Musk, Bill Gates, Bernard Arnault, and Mark Zuckerberg are listed after him in that sequence. All but Arnault started or co-started their own businesses. The only remaining CEOs of their companies are Musk and Zuckerberg.
A number of Sam Walton’s relatives, the late founder of Walmart, are also among the top UHNWIs in the world.
How Ultra-High Net Worth Individuals Invest
The majority of UHNWIs do not keep their funds in 401(k) mutual funds, money market accounts, or certificates of deposit (CDs) (k). The bulk of ultra-high-net-worth individuals (49%) get their money by running their own enterprises. 14% of people acquire the most of their money from their wage, while 21% obtain it mostly from their investment portfolios.
UHNWIs frequently invest in rental property. That means that 21% of UHNW persons’ wealth is typically invested in rental properties (mostly either residential or office buildings).
Forbes noted that although billionaires saw losses or sluggish growth in 2020, the number of billionaires continued to rise, with more billionaires than ever in 2021, when it issued its list of the world’s billionaires for that year.
Today’s billionaires are worth more than $13.1 trillion, up from $8 trillion in 2020. For the fourth consecutive year in 2020, Jeff Bezos, the founder of Amazon, ranked as the richest man in the world. He currently has a $209 billion net worth. Elon Musk, who became the second richest person in the world for 2020 after increasing his net worth from $25 billion to over $150 billion, experienced some of the fastest growth among billionaires.
Compete without risk for $100,000 in virtual money.
Utilize our FREE Stock Simulator to put your trading abilities to the test. Trade your way to the top while competing against hundreds of other Investopedia traders! Before risking your personal money, place trades in a virtual environment. Practice your trading techniques so that you will have the necessary experience when it comes time to enter the real market.
