Are you curious to know what high net worth individuals are? Do you want to know how to raise your net worth by increasing your wealth? The first one of the statistics that you should learn about is “Net Worth.” What exactly is Networth?
“Net Worth” means your financial assets – cash, property, and any other material possessions that are your dependents after subtracting your liabilities. What is a very high net worth individual? An individual who has more money than he needs and is willing to donate to others. A very high net worth individual would be able to live in a mansion has a fleet of private planes, own a big sports car, and still be completely OK with not having enough money to survive from paycheck to paycheck. And that’s just one example of what someone would consider being “very high net worth.”
11 Statistics about High Net Worth Individuals
If we look at the total number of people included in the high net worth individuals category, that figure reaches 15 million people globally. Among such many people, 200,000+ of them are ultra high net worth, whose wealth is over $ 30 million. Uniquely, if all the net worth of UHNWIs worldwide are combined, it would amount to nearly $ 30 trillion.
In terms of percentage, compared to all people in the world, only 0.003% of them are UHNWIs. The wealth they have is 13% of the wealth of people worldwide. Do they all have this wealth from their efforts? 65% of UHNW are self-made, while 16% of UHNW are inherited their wealth and continue to add to their wealth to reach the UHNWI level.
Many interesting facts about UHNWI, such as the businesses that are mostly carried out by them are real estate, stocks, bonds, finance, and banking. Of course, you think that UHNWI will have luxury homes, even luxury vehicles. Of course, only luxury cars, but 3 out of 4 UHNWIs indeed own private jets.
The average portfolio assets allocation of high net worth individuals
For many years the average portfolio assets allocation of high net worth individuals has been based on stocks and bonds with little to no investment in real estate. Many extremely wealthy people understand the importance of having a diversified portfolio, which includes real estate. The average individual may feel that their money is already diversified and doesn’t need anymore. The fact is that the stock market is a very volatile place, and stocks and bonds which haven’t seen much movement over the recent months can suddenly take a huge dive. Because there are so many factors that can affect an investment portfolio, the investor must find how they can increase their portfolio allocations for their assets without increasing their risk level.
The most common way that investors increase their asset allocation is through creating a more aggressive investing strategy. High net worth individuals have the option of investing in both stocks and real estate. If you feel that your portfolio has enough stability, it may be time to create a more aggressive portfolio that will keep up with market fluctuations. If you choose to do this, you must seek professional help to make sure that you will not put yourself at too great an advantage or disadvantage by creating an aggressive investment portfolio.
The second most common method of boosting an asset allocation is through asset management strategies. Some companies offer investment management solutions that help individuals create a more diversified portfolio. This can include asset allocation, asset protection, and growth and safety of funds. These are all services that should be used together to help ensure that your portfolio is as effective as possible. It is up to you to decide whether you feel that you can manage these investments independently.
The rich agree that Buy and Hold is the best investing strategy
Most of the investor advocates that the buy and hold strategy are the safest way to invest. But not all of them think the same way. There are a lot of investment strategies that can be followed. Each of them has its advantages and disadvantages. Buy and hold is a unique strategy. It has a major disadvantage, especially when investors have less capital than those who have more capital.
Most of the investors recommend that they should invest more in equities and less in commodities. They agree that the holding period is essential. A period of three years to six months is considered to be ideal. According to experts, the holding period should be chosen depending on the asset class. The period can range from three years to ten years, according to the situation of the investment.
According to these investment experts, investors should choose their investment options with a long-term perspective in mind. By holding period, investors are not forced to change their investment scheme frequently, thereby improving their profitability. Buy and hold is an ideal strategy for investors who do not wish to make constant changes in their investment portfolio. Investors who have a long-term investment plan are recommended to invest in the asset classes with lower volatility and better long-term performance. Suppose the investor wishes to take his investments further. In that case, they should diversify their portfolios by investing in other types of investments such as bonds, commodities, foreign exchange, and real estate property.
