When you are looking across the world spectrum there are some characteristics of high net worth investors which are similar from person to person. Figuring out just what these characteristics are is one of the great mysteries of life for those striving to among them. Consider these five characteristics of high net worth investors when figuring your investment strategy.
What is High Net Worth Individual?
According to Investopedia, an individual is characterized as a High Net Worth Individual when s/he possesses $1 million in liquid financial assets.
When the wealth is around $5 million , s/he is then referred to as "very HNWI". In cases where the wealth is more than $50 million, the person is classified as "ultra HNWI".
The above stated figures differ according to financial institutions and regions. But, as a rule, the more money the person has, the more effort it takes to maintain and preserve those assets.
High Net Worth Individuals are privileged category investors and generally demand personalized services in investment management, estate planning, tax planning, and asset protection.
These are some of the reasons why governments of many countries have created a special category of immigration - the Business Immigration category. The most successful business immigration programs, like Canadian and St. Kitts and Navis, have been successfully copied by countries like Bulgaria.
In the business immigration process, two parties are involved - the government of the country and the investor. This process is beneficial for both of them. For the government, the invested amount will contribute to the economy. Against his investment, the investor will be granted a permanent residency permit for a certain period of time. After that, the investor is welcome to apply for citizenship.
Each immigration program designed for High Net Worth Individuals (HNWI) has something different to offer. It is really important to take the time to compare them on the same basis and decide which one will respond best to your needs.
Year by year, the number of immigrant investors has grown and the destination countries have also adopted a more sophisticated approach to these programs.
Our role as an immigration intermediary is to support you during the entire application process, from the moment you contact us, to the moment you receive your permanent residency card or passport.
Characteristics of High Net Worth Individuals
Unsurprisingly one of the big commonalities in high net worth investors is that they take aggressive investment positions. They don’t just sit idly by in their positions and let the ups and downs take them where they will. Aggressive market moves can mean a big payday; it is also very risky. Embracing this risk is what high-net-worth investors are all about.
It takes a special kind of personality to become a high net worth investor. It takes a special kind of hutzpah. While just about anyone can find their niche in the working world, work very hard at their careers for a long period of time, and hopefully excel; being among the ranks of high-net-worth investors takes a little something extra. There is a savvy among those whose own personal investment has landed them in this bracket which is distinct.
Spreading yourself around is another important characteristic to gain high net worth status. While yes, you do want to be aggressive, that does not mean putting all your eggs in one basket. At least not for any length of time. Ask a lucky rich investor how they got to be rich and they will tell you one stock name; ask a high-net-worth investor what got them to their heights and they will tell you “the markets.”
Another characteristic of these high net worth individuals is that they are pretty smart. It’s not just anyone who can see trends across broader markets and how that will affect one industry in particular or even more pointed, one specific position. There is a certain intelligence in high-net-worth investors which is inherent.
Of course just like it takes all these other things to get on the high net worth train there is a certain amount of good fortune which is required. It may not even be “luck” as we have come to know it; but making the right trades at the right time and repositioning yourself correctly time after time does take a certain clairvoyance which can only be described as luck.