A high net worth individual is usually characterised as a person who has liquid assets above a certain figure. Forbes states that this figure can be defined as at least £2million. Part of these assets is usually allocated to luxury properties around the world and some places attract the attention of the HNWI more than others.
According to Wealth Insight figures, London hosts more multimillionaires than any other city in the world, with 4,224 HNW residents in the UK’s capital. Tokyo is in second place with 3,525 multimillionaires, Singapore is third with 3,154 and New York City is fourth with 2,929. On the other hand, London is third choice for billionaires, or ultra-high net worth individuals, as New York and Moscow are ahead with 70 and 54 resident billionaires respectively.
HNWIs have extremely demanding lifestyles, which is fundamentally the main reason for family offices and private advisors. In order to create a well-structured and trustworthy relationship, wealth management consultants should meet the objectives set by the high net worth client, which can be complicated and sometimes hard to achieve. Wealth managers have to concentrate on the needs of their clients and act accordingly.
A survey done by Cerulli Associates/Phoenix Market International showed that clients seek various types of support from their advisors. In particular, their main objective is to maintain their luxury lifestyle along with the protection and growth of their level of wealth.
The relationship between HNWIs and wealth managers has radically changed, as social media usage has increased among the affluent. A large percentage of them, as indicated by Spectrum’s social media study, consider Facebook and LinkedIn as a source of investment and financial needs.
Millionaire Corner research has identified the most common attributes of HNWIs, who are dedicated to ethical hard work, supported by frugality and balanced with smart investments as well as willingness to take risks. Finally, the main attribute of the affluent are their long-term relationships with their advisors, who are considered key to their wealth growth and preservation.
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