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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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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 | link to this post ]
  - 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 | link to this post ]
  - yes but to invest with a true HNW group the minimum is $5mm.
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    06.12.09, 12:23 PM [ Flag | link to this post ]
    - in some its even higher
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      06.12.09, 12:31 PM [ Flag | link to this post ]
  - 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 | link to this post ]
- 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 | link to this post ]
- 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 | link to this post ]
  - 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 | link to this post ]
    - So if we have a $1 mill stock portfolio, $1-2mm apartment and make a combined HHI of about $250k are we HNW?
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      06.12.09, 12:44 PM [ Flag | link to this post ]
      - 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 | link to this post ]
        
        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 | link to this post ]
      - no
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        06.12.09, 12:49 PM [ Flag | link to this post ]
        
        We're not HNW? I feel so left out!
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        06.12.09, 12:57 PM [ Flag | link to this post ]

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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?

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!

UrbanBaby Asks...

Are you expecting something special from your dh for Valentine's Day?

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UB Like it's 1776!

Video: Cooking With Grandma Gigi