What is a HNWI?
In personal finance, the term “net worth” refers to the financial position of an individual, and it is calculated using the value of all of the individual’s assets, minus the total debt that the individual owes. For a simple example, if a person has $10,000 U.S. Dollars (USD) in cash, and $2,000 USD in stock, and owes $5,000 USD in debt on a vehicle, then that individual has a net worth of $7,000 USD. A person is said to be a High Net Worth Individual (HNWI) when his net worth exceeds a certain amount, usually defined at $1 million USD. The value or liability of a person’s primary residence is usually not included in the calculation of net worth. However, the U.S. Securities and Exchange Commission (SEC) defines a HNWI by slightly different criteria for their own purposes. All investment advisers who are registered with the SEC are required to file reports, periodically, stating how many of their clients are HNWIs by the SEC’s definition. For the purposes of filing this form, a HNWI is
