High-Net-Worth vs. Ultra-High-Net-Worth

Wealthy people are often divided into two categories: high-net-worth individuals, who have at least $1 million in liquid assets, and ultra-high-net-worth individuals, who have $30 million or more. The definitions matter within the financial services industry, which targets different offerings to members of each group. Depending on their category, wealthy individuals require and can access different types of investment products and financial services. Let’s look at the key differences between the two groups.

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What Is a High-Net-Worth Individual?

A high-net-worth individual (HNWI) is generally someone with at least $1 million in liquid assets. This means the person has a minimum of $1 million in cash, money market accounts, stocks, bonds and other highly liquid assets.

HNWI definitions don’t typically include less-liquid assets such as real estate, land and collectibles. And the liquid asset minimum has to be reached after deducting debt, so someone with $1 million in cash and securities and $500,000 in debt would not typically qualify.

While the definition the financial services industry uses is not official and has no legal weight, the Securities and Exchange Commission has a definition that is official. The SEC uses the term “accredited investor” to describe individuals that meet specific requirements including at least one of the following:

Possess professional certifications, designations or credentials demonstrating investment knowledge
Have a $1 million net worth, not including the value of the individual’s primary residence
Generate earned income of $200,000 in each of the last two years; if combined with a spouse, the threshold is $300,000

What Is an Ultra-High-Net-Worth Individual?

An ultra-high-net-worth individual (UHNWI) generally needs at least $30 million in net investable assets. This general definition is used by wealth managers, financial advisors and others in financial services to identify the richest segment of potential clients. Some definitions consider individuals with $10 million or more to fall within the UHNWI category. There’s no upper limit, so billionaires are categorized alongside others who are merely worth tens of millions.

Government regulators don’t use a UHNWI definition. A member of this group is treated like any other HNWI or accredited investor and has access to any legal investment opportunity.

HNWI vs. UHNWI: Why the Difference Matters

SmartAsset: High-Net-Worth vs. Ultra-High-Net-Worth

Achieving HNWI status affects the types of investments that are available. The SEC will not allow people who aren’t accredited investors to put their money into private equity funds, hedge funds and some other vehicles that are considered too complex or risky for less sophisticated and well-heeled investors. However, once you reach HNWI status, the SEC does not distinguish further if your wealth grows to UHNWI levels.

Financial services firms also target certain offerings to potential customers by wealth. For instance, HNWI customers may be able to get high-end credit cards such as the American Express Centurion Card. The financial services industry offers even more specialized attention to the UHNWI group.

The difference between HNWI and UHNWI is most important to wealth managers, financial advisors, estate attorneys and others who serve the very affluent. Some restrict their practices to either HNWI or UHNWI clients to limit client volume and focus on tailored services.

Financial Needs of High-Net-Worth Individuals

High-net-worth individuals often require financial services that go beyond basic investment management. Common needs include comprehensive retirement planning, tax-efficient investment strategies, estate planning and insurance coverage. Many HNWIs focus on growing their portfolios through diversified investments across equities, fixed income and real estate, while also managing risk and planning for long-term goals like education funding or business succession.

Liquidity planning is another key concern, especially for those with assets concentrated in a business or investment property. Trusts and other legal structures may be used to manage wealth transfers and reduce estate taxes.

While their needs are more complex than mass-affluent investors, many HNWIs still rely on retail-focused advisory firms, robo-advisors with personalized features or hybrid solutions that combine digital tools with human advice. Relationship management, transparent fee structures and performance reporting are all significant factors in how HNWIs select their advisors.

Financial Needs of Ultra-High-Net-Worth Individuals

People in the UHNWI segment often have a team of financial planners and wealth managers as well as legal and tax experts to help with their more expansive and complex requirements. They may have a family office that operates like a private asset management firm while also addressing financial matters tied to lifestyle concerns like education, travel and art collections.

They invest in more sophisticated, complex and risky investments, including private equity, hedge funds, precious metals, world markets, collectibles and cryptocurrencies. Their consumption may lean toward experiences rather than possessions, and they are more likely to devote significant attention and resources to supporting charitable causes.

Taxes are a particular concern for a UHNWI, in part because their assets exceed the federal estate tax exemption of $13.99 million in 2025. Only wealthier HNWIs are exposed to this tax. To manage inheritance taxes, the UHNWI is more likely to use private foundations, family limited partnerships and similar estate planning tools.

Tax residency, citizenship planning and geopolitical risk are often part of the conversation, particularly for those with cross-border interests. Customized reporting, discretion, and legal risk management play a large role in how these individuals structure their financial affairs.

Bottom Line

The wealthy aren’t just different from the general population; they also vary significantly among themselves. High-net-worth individuals (HNWI) worth more than $1 million tend to have individual financial planners helping them put their money into mainstream investments, while ultra-high-net-worth Individuals (UHNWI) have teams of experts to direct investments in private equity, hedge funds and other risky and sophisticated investments. Tax planning, investment access and consumption patterns also vary among these classes of wealthy individuals

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