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Any wives of declaration signers on? I feel so alone, with DH out trying to build a country for everyone else when he has a family at home!

Posted September 13, 2007(191 replies)

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How much money do you have to have to be to be considered "high net worth? "("HNW")? Does it have to be liquid or do assets (like your home) count?
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New York City
Preschool/Kids
06.12.09, 12:04 PM Flag ]
- By whom? Accredited investors -- investors allowed to participate in funds that are not regulated -- are persons with a minimum net worth of US $1,000,000 or, alternatively, a minimum income of US$200,000 in each of the last two years. Investment advisors that target the wealthy typically would not take a client with less than 1-2M in liquid assets, with the higher end not taking clients with less than 5 or even 10. BTW, it's all in the eye of the beholder.
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  06.12.09, 12:14 PM Flag
  - ITA with this entirely- as this is how most banks look at investors for consideration
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    06.12.09, 12:21 PM Flag
  - yes but to invest with a true HNW group the minimum is $5mm.
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    06.12.09, 12:23 PM Flag
    - in some its even higher
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      06.12.09, 12:31 PM Flag
  - This is true, although given that advisers are desperate for new cash inflow right now, many will accept investors with fewer assets & lower net worth.
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    06.12.09, 12:35 PM Flag
- different people have different tests. it depends on who is asking (for example, some hedge funds have a $5M liquid net worth test, but some banks set internal thresholds at $1M or even as high as $10M) it is not a universal definition. typically, equity in your home is not part of the equation.
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  06.12.09, 12:31 PM Flag
- HNW at some banks is ~ $1-5M while at some other (Credit Suisse, I think) is $40M. I forget what you liquid assets need to be to participate in a HF, but it's over several millions in $ as well. You need to check based on what you want to do with that status.
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  06.12.09, 12:32 PM Flag
  - You can invest in some hedge funds as an accredited investor (defined above) but more often you have to also be a "qualified purchaser" which, for an individual, requires you to have $5m in investable assets excluding personal residence.
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    06.12.09, 12:38 PM Flag
    - So if we have a $1 mill stock portfolio, $1-2mm apartment and make a combined HHI of about $250k are we HNW?
      [ Reply | More ]
      06.12.09, 12:44 PM Flag
      - I think the short answer is that you would likely qualify for the general types of services many financial institutions provide to "high net worth" clients, but wouldn't necessarily qualify to invest in every type of investment product those institutions offer.
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        06.12.09, 12:49 PM Flag
        
        np: exactly- we have the exact same stats as above poster and couldn't get in on the higher end services at Goldman- they wanted 5 Million + as did some other places.
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        06.12.09, 03:39 PM Flag
      - no
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        06.12.09, 12:49 PM Flag
        
        We're not HNW? I feel so left out!
        [ Reply | More ]
        06.12.09, 12:57 PM Flag

How much money do you have to have to be to be considered "high net worth? "("HNW")? Does it have to be liquid or do assets (like your home) count?

UrbanBaby Asks...

Do you 'enjoy' spending time with your kids?

UB Like it's 1776!

Inside UrbanBaby

UrbanBabyBuzz

How much money do you have to have to be to be considered "high net worth? "("HNW")? Does it have to be liquid or do assets (like your home) count?

ITA with this entirely- as this is how most banks look at investors for consideration

yes but to invest with a true HNW group the minimum is $5mm.

in some its even higher

This is true, although given that advisers are desperate for new cash inflow right now, many will accept investors with fewer assets & lower net worth.

different people have different tests. it depends on who is asking (for example, some hedge funds have a $5M liquid net worth test, but some banks set internal thresholds at $1M or even as high as $10M) it is not a universal definition. typically, equity in your home is not part of the equation.

HNW at some banks is ~ $1-5M while at some other (Credit Suisse, I think) is $40M. I forget what you liquid assets need to be to participate in a HF, but it's over several millions in $ as well. You need to check based on what you want to do with that status.

You can invest in some hedge funds as an accredited investor (defined above) but more often you have to also be a "qualified purchaser" which, for an individual, requires you to have $5m in investable assets excluding personal residence.

So if we have a $1 mill stock portfolio, $1-2mm apartment and make a combined HHI of about $250k are we HNW?

I think the short answer is that you would likely qualify for the general types of services many financial institutions provide to "high net worth" clients, but wouldn't necessarily qualify to invest in every type of investment product those institutions offer.

np: exactly- we have the exact same stats as above poster and couldn't get in on the higher end services at Goldman- they wanted 5 Million + as did some other places.

no

We're not HNW? I feel so left out!