Are You Working with the High Net Worth?

If your advisory firm isn’t working with high-net-worth (HNW) clients, you may want to consider tailoring some of your services to meet this demographic’s needs.

HNW individuals and families can provide a substantial opportunity to grow your firm. They can help generate additional business—and their need for elevated service, solutions, and support can create ongoing opportunities to enhance your relationships and show your value. 

Who Are the HNW? 

Let’s start by defining wealthy individuals: 

  • Mass Affluent = $200K to $1 million in liquid investable assets
  • High-Net-Worth (HNW) = $1 million to $5 million in assets
  • Very-High-Net-Worth (VHNW) = $5 million to $30 million in assets
  • Ultra-High-Net-Worth (UHNW) = $30 million or more in assets 

More than 13 million households in the United States have a $1 million or more net worth, over 8,000,000 households have a $2 million or more net worth, and around 5,670,000 households have a $3 million or more net worth.[1]

In the United States, the number of millionaires is estimated to grow by 16% over the next five years, with a 27% growth in investors with $50 million+.[2]

With more than 22 million investors in the United States with more than $1 million to invest, there’s plenty of opportunity to add HNW clients to your firm.[3] 

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Opportunity Awaits 

HNW individuals frequently hire financial professionals to oversee their finances; however, only 62% of millionaires utilize Financial Advisors to help manage their wealth.[4] 

And, when they are working with an Advisor, they may end up changing Advisors if they’re not receiving enough customized service, they feel unsupported, or their Advisor doesn’t provide the products and services they’re looking for.[5] 

To attract and retain HNW individuals, it’s essential to recognize their needs and objectives. Most seek services including:[6]

  • Wealth transfer advice
  • Financial planning
  • Investment management
  • Estate planning advice
  • Trust services 

Identifying the specific needs, expectations, and priorities of each HNW client is critical so you can customize plans and strategies to help them achieve their goals.

Interested in learning more about working with HNW clients? Access A Guide to Working with the High Net Worth, which provides strategic tips to help you attract and serve this demographic.

Marketing to the HNW

Developing a marketing strategy to target the HNW can be challenging, leading you to question: 

  • How do I begin to attract HNW clients?
  • What expertise/solutions do I need to support HNW clients?
  • What type of service model do I need to support HNW clients?

The experienced team at Symmetry Marketing Group provides marketing, branding, and digital marketing to help you reach this unique audience. 

Your Symmetry Regional Team can also provide business intelligence and customized consulting to help you solve the complex financial needs of almost any HNW investor.

 


 

This material is for educational purposes and is intended to be used by financial professionals. Symmetry Partners, LLC (“Symmetry”) provides this communication as a matter of general information. Information contained herein, including data or statistics quoted, is from sources believed to be reliable but cannot be guaranteed or warranted. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. All content is for educational purposes and should not be considered investment advice, recommendation, or offer of any security for sale.

 Symmetry is an investment advisory firm registered with the U.S. Securities and Exchange Commission (SEC). The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration with the SEC or any state securities authority does not imply a certain level of skill or training and does not constitute an endorsement of the firm by the SEC. 

Symmetry charges an investment management fee for its services. All Symmetry fees can be found in the Symmetry Form ADV Part2A located at www.symmetrypartners.com. Past performance does not guarantee future results. All data is from sources believed to be reliable but cannot be guaranteed or warranted. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, product, or any non-investment-related content referred to directly or indirectly in this material will be profitable or prove successful. As with any investment strategy, there is the possibility of profitability as well as loss. Please note that you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice from Symmetry. 

Symmetry does not provide tax advice. Please note that (i) any discussion of U. S. tax matters contained in this material cannot be used by you for the purposes of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

[1] Griffiths, John, NCESC.com, “What Percentage of Americans Are Millionaires (2023 Updated)”
[2] 2023 Credit Suisse Global Wealth Report
[3]Sabatier, Grant, Millennial Money, “Millionaire Statistics for 2023”
[4] The Advisor Coach, “8 Tips for Attracting UHNW Clients” (as of December 2023)
[5] PwC HNW Investor Survey 2022
[6] Spectrum Group Wealth Management Redefined, 2021

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