What are high net worth and ultra-high net worth individuals?
Dec 15, 2025・5 min read
Most people have an opinion about what “true wealth” means, but private wealth firms, banks, and tax officials only care about how many assets you have. As more people ascend the global wealth pyramid, it’s increasingly important to understand the difference between high net worth and ultra-high net worth individuals, and to know how they influence the global economy.
Whether someone bet early on Bitcoin (BTC) or built a successful business over decades, let’s talk about when their net worth qualifies as “ultra wealth,” and explore the complexities high net worth individuals have to contend with in their yearly financial planning.
What’s a high net worth individual (HNWI)?
At $1 million in net worth, the threshold to become a HNW individual is substantially lower than the next category we’ll look at, but it still puts them in a select group. Current estimates suggest that over 41 million people qualify as HNWIs, which accounts for roughly 0.5% of the global population.
What’s an ultra-high net worth individual (UHNWI)?
UHNWIs are at the summit of global wealth, and this category includes some of the most famous investors and innovators (such as Jeff Bezos and Mark Zuckerberg). Although there’s debate over how much net worth qualifies a person for this uppermost tier, many wealth management firms set the minimum at $30 million.
Key differences between UHNWIs and HNWIs
The rarity and influence of UHNWIs mean they’re more likely to be public figures with significant influences on global culture and industry. Many UHNWIs are founders and CEOs of multinational companies, heirs to family fortunes, or magnates in fields like oil or energy.
In contrast, HNWIs aren’t usually in the public eye, and they don’t have the same degree of power on the global stage. Entrepreneurs running successful mid-sized businesses and professionals with reliably high incomes (such as doctors and lawyers) often become HNWIs, especially when they invest successfully in crypto or stocks.
HNWIs and UHNWIs both have access to exclusive investment opportunities, but UHNWIs have more options. For instance, while HNWIs can take advantage of private real estate deals or premium wealth management services, UHNWIs tend to have access to more bespoke arrangements, including direct lending and private hedge funds.
Examples of well-known UHNWIs
Most people are already familiar with dozens of UHNWIs, due to their prominent positions and visibility in global media. Here are four examples.
Jeff Bezos
Jeff Bezos built his fortune as the founder and former CEO of Amazon. Today, Bezos continues to build and invest in companies through his firm Bezos Expeditions. At the time of writing, these ventures put Bezos’s net worth at over $240 billion.
Mark Zuckerberg
What started as a photo-matching site became one of the most visited places on the web – transforming Facebook founder Mark Zuckerberg into a UHNWI. As the CEO of Meta Platforms, Zuckerberg now owns other domains like Instagram and has valuable investments in virtual reality technologies and AI. Together, these projects put Zuckerberg’s estimated net worth at over $200 billion.
Warren Buffett
Unlike many disruptors in the UHNWI category, Warren Buffett built his billions through disciplined investing. He acquired valuable brands like GEICO, and he amassed large stakes in companies like Apple through the holding company Berkshire Hathaway. Currently, Warren Buffett’s net worth is around $150 billion.
Elon Musk
Elon Musk is heavily involved in multiple companies at the cutting edge of their respective industries. From electric vehicles at Tesla to space exploration at SpaceX, Musk’s endeavors are diverse and ambitious. Musk’s current net worth sits at about $470 billion, and there’s a chance he could become the world’s first trillionaire.
How many high net worth individuals are in the United States?
There are various ways to count the world’s wealthiest people. For example, the firm Altrata uses the standard cutoffs of $1 million for HNWIs and $30 million for UHNWIs, placing global numbers at about 41 million HNWIs and 500,000 UHNWIs.
Knight Frank provides a different perspective, setting higher expectations with a minimum of $10 million for HNWIs and $100 million for UHNWIs. Using this second model, there are about two million HNWIs and 100,000 UHNWIs.
Regardless of these differences, statistics reliably show that the highest percentage of both groups live in North America. Knight Frank reports that about 900,000 HNWIs (including about 45,000 UHNWIs) live in North America, while Altrata estimates that about 200,000 UHNWIs live in the U.S.
Experts also agree that these numbers will continue to grow. Altrata projects that the total global number of UHNWIs will increase by 31% between 2025 and 2030.
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How do UHNWIs invest?
Each UHNWI is unique, but they almost never rely on one asset or source of income, instead using portfolio diversification to earn and deploy capital through the following methods.
Primary and secondary homes
Land holds immense value, so real estate is a cornerstone of many UHNWI portfolios. While there are always swings, property steadily rises in value over time, and it can provide significant passive income through rent. Owning real estate in multiple countries can also give UHNWIs special citizenship or residency rights.
Stocks and bonds
Stocks and bonds are traditional wealth generators with wide accessibility and liquidity in global markets. However, UHNWIs are more likely to start their own businesses and create shares or be early investors in private companies. UHNWIs also have access to private credit deals with more favorable rates.
Alternative assets
Alternative assets aren’t as accessible as stocks and bonds, but many UHNWIs diversify in non-correlated markets. These assets range from traditional commodities like gold to digital assets like top cryptocurrencies. UHNWIs may also use collectibles or luxury items as investments, including private jets and fine art.
Accredited-only investments
The U.S. Securities and Exchange Commission defines “accredited investors” as individuals with over $1 million in net worth or $200,000 in annual income. This means UHNWIs can take advantage of VIP investment opportunities that are only available to accredited clients, such as buying pre-IPO companies. Because the general public can’t purchase these assets, UHNWIs enjoy less competition.
Tax and investment challenges faced by UHNWIs
A multi-layered, multi-national portfolio can be difficult to manage, so UHNWIs rely on tax professionals and money management agencies to make sense of their cash flows and file the proper paperwork. Here are the challenges they typically face.
Complex tax planning and diversification
The scale of a UHNWI’s investments and income sources makes tax reporting challenging, especially when it spans multiple jurisdictions. Beyond tracking yearly transactions, UHNWIs have to consider more advanced strategies to legally decrease their tax liabilities, including charitable giving and tax-efficient vehicles like private placement life insurance.
Estate and succession planning
For a smooth transition of generational wealth, UHNWIs need to carefully consider estate planning to avoid conflicts and reduce the tax burden on beneficiaries. Tools like family trusts and structured inheritance help them tackle tax and legal issues while complying with probate laws.
Regulatory challenges
One downside of being in the limelight is that regulators pay extra attention to a UHNWI’s cash flow. UHNWIs often work with a team of lawyers to meet the latest compliance standards in the territories where they do business.
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Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.
FAQ
Is it good to have a high net worth?
Having a high net worth offers many advantages when it comes to lifestyle and influence, and it provides access to more lucrative investment opportunities. At the same time, this status comes with greater responsibility, regulatory scrutiny, and legal complexity.
Is $5 million net worth considered rich?
Someone with $5 million is considered a high net worth individual by most metrics.
How many high net worth individuals are in the U.S.?
Many money managers define “high net worth” as having over $1 million, and about 8 million Americans fall into that category.
What percentage of Americans have a net worth over $10 million?
Global consultancy Knight Frank estimates that about 900,000 people in the U.S. have a net worth over $10 million. The U.S. is home to about 342 million people, so this category only includes 0.265% of the population.