Ultra-High Net Worth Individuals — PillarWM
An ultra-high net worth individual is someone who owns assets worth more than $30 million. These assets may be illiquid or liquid, such as stocks or real estate holdings. Given their significant asset holdings, ultra-high net worth individuals often require the services of wealth managers and financial advisors. Are you wondering, “How many ultra-high net worth individuals are there?”According to research, there are more than520,000. Some of the financial services these individuals may use are tax advice, investment management, and general guidance on managing their wealth. These are exactly the kind of services that we provide to our clients at Pillar Wealth Management. We aim to provide stellar advisory and wealth management solutions for individuals with $5 million to $500 million in liquid assets. If you’re an investor who has $5 million or more, then you can learn about investment strategies by requesting a free copy of our book 7 Secrets To High Net Worth Investment Management, Estate, Tax, and Financial Planning.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
How To Calculate Your Net Worth
Do you want to know if you qualify for the ultra-high net worth tag? Calculating what you’re worth is simple. The formula is to deduct the total value of your liabilities from the value of your assets. The result is your net worth.
Your Net Worth = Total Assets – Total Liabilities
For instance, consider a household with assets worth $1 million, including their home equity,collectibles, investment accounts, and bank account balance. Their liabilities are credit card debt, an unpaid mortgage, and vehicle loans, totalling to $150,000. In this example, this household is worth $850,000. In most cases, only the liquid assets of a person are considered. To learn more about the kind of clients we take on at Pillar Wealth Management, set up a free video meeting with a wealth manager.
You may also be wondering what is considered a high net worth individual, and quite simply, there is no definite answer to this question. Every individual with a net worth higher than $30 million is considered an ultra-high net worth individual. While these individuals may have a few similar personality traits, their valuations are constantly changing, and as long as they’re valued above $30 million, they’re considered to be ultra-high net worth. If you’re one of these individuals with $5 million or more in liquid assets, you can learn useful investment strategies by reading ourguide.
How Do You Become Ultra-High Net Worth?
Quite simply, the most effective way of reaching ultra-high net worth status is by reducing your liabilities and increasing the number of assets you hold. You can do this by making smart investments (ones that give you a stable stream of revenue) and by keeping unnecessary expenses at bay. That said, high net worth doesn’t necessarily mean an individual is rich. For some people, having a high net worth is a goal worth pursuing.
The following pathways can help you build savings in your bank account in the real estate market while teaching you how to manage your portfolio. This can, in turn, help you grow your wealth in the long or short term. To know more about some of the key challenges an individual can face regarding asset management, read our guide for investors that $5 million in liquid assets.
1. Pay Off Debt
An interest-bearing loan is a liability that can hurt your net worth. Once you’re able to, pay off of your debt. While you’re doing this, you should also ensure no penalties are imposed on frequent or early payment (which can be the case with some mortgages). One of the most effective ways to increase the number of assets you hold is by targeting the debt with the highest interest rate first, then paying off other liabilities as you move ahead.
Consider consolidating the debt you have by a personal loan with a decreased rate. This will help you pay off high-yield debt, and this is also a time-tested strategy. It is possible to increase your net worth, pay off debt, and increase your asset holdings. But to do this, you’ll need to have a plan that takes you from A to B. To learn more about how you can improve your portfolio’s performance, check out our performance guide.
2. First, Pay Yourself
Paying yourself first means that you put money aside for the future before you consider making any major financial decisions. Doing this is not easy, but if you start by making small changes or commit to putting funds into a savings account, it’ll get easier. As you progress through your career, you will have several opportunities to increase your savings. However, this doesn’t mean you shouldn’t focus on saving now.
The earlier you start paying yourself, the higher your savings will be to go toward your investment accounts. Moreover, the longer your savings stay in your investment accounts, the longer compound interest will work in your favor.
3. Invest In Yourself
One way to increase your earnings is by investing in your daily habits. While you may have heard this before, it’s an investment you can make to educate yourself. This could also mean that you pursue a rigorous training program or pay for a certification that improves your skill set. This will, in turn, enable you to make more informed decisions.
This can also mean that you invest in your health and take care of your mind and body with regular exercise, proper nutrition, and sufficient sleep. You can also consider yoga or other meditative practices that help you stay calm. While you aren’t investing directly in an asset, these investments enable you to live a happier and healthier life even when you retire. To learn more about the retirement challenges you may have to face, please set up a video meeting with one of our wealth managers today.
4. Buy a Home
Buying a home is often the single biggest purchase a person makes. Even though there are various strategies for spending money, purchasing a home is a soundinvestment decision that doesn’t take a lot of thought. The reason it’s considered to be powerful has to do with the return on capital and leverage. A person who buys a home usually puts down 20% or less of the purchase as cash while borrowing 80% of a lender’s money.
Over time, as the house’s value appreciates, equity builds for the homeowner, too. The house’s value is then leveraged by the owner, who usually pays lesser interest rates and has more time to pay off the house’s debt. This also means that they get an increased ROI on the investment they’ve made in the house.
Moreover, home ownership can also increase your net worth since you can treat part of your home as a rental. You can rent out rooms or even purchase a different property which you can then treat as a rental property. Regardless of how you plan to use the home, by purchasing a home and then living in it for years, you can easily build equity that can be helpful later in life. However, one additional factor you’ll have to consider while buying a home is the added taxation regulations. Read our guide in which we discuss some vital taxation strategies for investors that have $10 million or more in liquid assets.
How Ultra High Net Worth Individuals are Different
How do you become an ultra-high net worth individual? To put it simply, people with an ultra-high net worth are wired differently and fuelled by different ideas and motivations. If you’re trying to achieve an ultra-high net worth, you’ll have to start emulating the actions of those people who have already reached the top of the food chain.
Here are a few ways in which ultra-high net worth individuals are different from most people.
● They Embrace Being Uncomfortable
Working a “safe” job that doesn’t pay you too much but requires minimal effort is easy. Working for someone else is easy, too. People often think that staying in the comfort zone makes them happy, but the rich realize that extraordinary things happen when we put ourselves in unfavourable situations. Starting your own business is a risky decision, and taking on these risks can be uncomfortable. But sticking to this risky decision is needed to accumulate wealth and achieve extraordinary results.
To achieve an ultra-high net worth, you’ll have to step out of your comfort zone and consider all of the options you have. Even if you fail, the lessons you learn will be worth your time.
● They Live Below Their Means
While ultra-high net worth individuals have a posh lifestyle, they still live as lavishly as their bank account allows. People that have an ultra-high net worth don’t splurge on depreciating liabilities; instead, they focus on spending their money on appreciating assets. On average, they focus on buying slightly used cars even if they can afford a new Rolls Royce. Remember, even if you earn $1,000,000 a year, you’re going to be broke if you spend all of it before the year ends.
● They Have Secondary Sources of Income
Even though digital currencies and different sources of money are making the rounds on social media every day, the rich understand the value of hard-earned cash. People who have an ultra-high net worth valuation understand that to accumulate wealth, they need to prioritize money over things. If you keep buying things, you’ll be spending money on things, and you’ll never accumulate wealth.
Stop buying things you don’t need and focus on keeping, investing, and saving the money you earn. If you like shopping, start shopping for different assets. Invest your time in investing and then look for stocks and bargains on businesses instead of electronics and different shops. To learn more about how you can look for favourable investments, talk to our wealth managers today by setting up a free video meeting with them today.
Traits High Net Worth Individuals Have in Common
● They’ve Got the Basics Down
People who have an ultra-high net worth don’t often take many big risks. Instead, most of them become wealthy by buying and making essential investments. On the other hand, some consider investing in bonds and stocks.
● They Hunt for Opportunities Daily
Wealthy people are always ready to pounce when they see an opportunity. That’s what makes them different. While they get excited seeing a new opportunity, they consider every investment decision with a pinch of salt. In most cases, it’s about filtering their options and finding the onethat makes all the difference in their portfolio.
● They Keep a Close Eye on Taxes
The rich are attuned to the tax implications of all of their decisions. Their tax bracket plays a major role in almost every investment decision they make. To know more about the portfolios of ultra-high net worth individuals, request a free copy of our book 7 Secrets To High Net Worth Investment Management, Estate, Tax, and Financial Planning.
Why You Should Choose Pillar Wealth Management
If you’re an ultra-high net worth individual looking for financial advice, wealth management, or guidance for your portfolio, you should reach out to Pillar Wealth Management. The wealth managers working for us possess decades of experience in the wealth management industry and can easily help you achieve your financial goals. Communicating with us is easy, and we’re upfront about the fee we charge.
To get in touch, set up an interview with a wealth manager today to start availing of our services.
To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.
We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.
You see, our goal is to only accept 17 new clients this year. Clients who have from $5 million to $500 million in liquid investable assets to entrust us with on a 100% fee basis. No commissions and no products for sale.
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