What is a high-net-worth individual?

The term high-net-worth individual (HNWI) is a classification of individuals who have at least $1 million in liquid assets. 

At least $1 million in liquid assets means that high-net-worth individuals have at least $1 million in cash in hand, or they have at least $1 million in assets that can quickly be converted into cash, such as public stocks, gold, government bonds or certificates of deposit.

The $1 million excludes their primary residence and illiquid investments that are considered difficult to sell and/or volatile in value (such as fine art).

To date, there are 21.7 million high-net-worth individuals in the world with a collective wealth equaling $83 trillion, according to the Capgemini World Wealth Report. Most of them reside in the United States, as well as China and India.

These high-net-worth individuals around the world have greater access to investment opportunities, such as private market investments that are exclusive to accredited investors who meet certain criteria, like a minimum net worth. 

Invest in venture capital and similar alternative assets using tax-advantaged retirement funds.