Table of Contents
- What Is an Ultra-High-Net-Worth Individual (UHNWI)?
- Key Takeaways on UHNWIs
- Some Stats on Ultra-High-Net-Worth Individuals (UHNWIs)
- Examples of UHNWIs
- How UHNWIs Invest
- What Defines Ultra-High Net Worth?
- How Many People Have an Ultra-High Net Worth?
- What Percentage of the U.S. Population Are Millionaires?
- The Bottom Line
What Is an Ultra-High-Net-Worth Individual (UHNWI)?
Let me explain directly: an ultra-high-net-worth individual, or UHNWI, is someone with a net worth of at least $30 million. You should know this group includes the wealthiest people globally, and they hold a massive share of the world's wealth. It's a small segment, but it's expanding steadily.
By the end of 2023, there were 626,600 UHNWIs worldwide, which marked a 4.2% increase from the previous year, as reported in Knight Frank's 2024 Wealth Report.
Key Takeaways on UHNWIs
To keep it straightforward, UHNWIs are defined by Knight Frank as those with at least $30 million in net worth. The United States leads with 208,560 of them. In terms of investments, most allocate significant portions to equities, commercial real estate, and bonds, but the bulk of their wealth often comes from the value of their primary and secondary homes.
Some Stats on Ultra-High-Net-Worth Individuals (UHNWIs)
Here's what the numbers show: the U.S. has the highest count at 208,560, out of a global total of about 626,600. While Latin America saw a decline, North America and the Middle East grew by 7.2% and 6.2%, respectively. Europe remains the region with the wealthiest 1%.
Women make up around 11% of UHNWIs worldwide, per Altrata, and Knight Frank notes a 38% rise in female UHNWIs over the past decade. Additionally, 22% of UHNWIs plan to buy a home this year, with millennials showing more interest than baby boomers.
Examples of UHNWIs
Many UHNWIs are self-made, as seen in Forbes' annual lists of the world's richest. Their Real-Time Billionaires List tracks daily net worth changes, updating after 5 pm EST from the prior trading day.
As of October 7, 2024, Elon Musk topped the list with $262.6 billion, followed by Larry Ellison at $208.8 billion, Mark Zuckerberg at $205.6 billion, and Jeff Bezos at $199.8 billion. The total wealth of billionaires in 2024 reached $14.2 trillion, up $2 trillion from 2023. Others near the top include Bernard Arnault and family, Warren Buffett, and Larry Page.
Forbes reported 2,781 billionaires in 2024.
How UHNWIs Invest
You won't find most UHNWIs parking their money in CDs, money market accounts, or 401(k)s. Instead, they concentrate their wealth in primary and secondary homes, stocks and bonds, and venture capital or private equity.
When Forbes released its 2024 billionaires list, it noted that two-thirds of them were richer than the year before, while one-fourth had lost ground.
What Defines Ultra-High Net Worth?
Net worth is simply the total value of all your assets. The threshold for ultra-high net worth is currently $30 million, but expect this to shift as more people reach millionaire and billionaire status over time.
How Many People Have an Ultra-High Net Worth?
According to Knight Frank, there are 626,600 people with a net worth over $30 million.
What Percentage of the U.S. Population Are Millionaires?
Surveys vary, but the latest U.S. Census Bureau data indicates that one in 10 households has a net worth exceeding $1.41 million.
The Bottom Line
In summary, UHNWIs are those with more than $30 million in net worth, calculated from all assets, not just investable ones. Worldwide, hundreds of thousands qualify, with about 70 new ones added daily at the end of 2023.
Knight Frank projects a 28.1% increase in UHNWIs from 2023 to 2028, with strong growth in India at 50% and mainland China at 47%. As the number of millionaires rises, we'll likely see more UHNWIs, and the definition may need updating soon.
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