So, you’ve built some serious wealth—now what?
Whether you’ve hit that $5 million net worth milestone or you’re just breaking into your first million, the game has officially changed. Because once you’re in the high net worth individual (HNWI) club, it’s no longer about just growing money—it’s about protecting it, optimizing it, and making it work smarter than ever before.
Think of it this way: how you invest from this point on isn’t just important—it’s everything.
We’re talking about next-level strategies used by ultra high net worth individuals (UHNWI) who don’t just play the market… they shape it. From navigating liquid net worth vs net worth, to creating airtight tax planning moves, to tapping into private investment tools and legacy planning—this is where wealth turns into power.
This guide breaks it all down for you—clear, practical, and without the Wall Street jargon.
Because high net worth investing isn’t just for billionaires. It’s for you. And it starts right here.
First, What Is Considered a High Net Worth?
Let’s clear the air: being “high net worth” doesn’t just mean driving a nice car or owning a big house (sorry, your primary residence doesn’t count here).
To be officially recognized as a high net worth individual (HNWI), you need:
- At least $1 million in investable assets
(That means cash and things you can convert into cash—like your brokerage accounts, savings account, checking account, and other liquid assets.) - Excludes your home sweet home
Your primary residence doesn’t count in this equation. Harsh, but fair.
Now, if your investable assets have hit $30 million+?
You’re in the ultra-elite club. Welcome to the world of ultra high net worth individuals (UHNWI)—where tax advantages, legacy planning, and capital gains strategies become your everyday vocabulary.
Not Sure Where You Stand?
It’s time to get clarity. Use a tool to calculate my net worth and see your net worth calculated with precision. Because knowing your real number is the first step to playing the long game smart.
Liquid Net Worth vs Net Worth: Why It Matters
Credit: corporatefinanceinstitute.com
Let’s be real: it’s not just about how much you have—it’s about how fast you can use it.
Before you make any big investment move, you’ve got to understand the difference between your net worth and your liquid net worth. They’re not the same thing—and mistaking one for the other could cost you big.
Here’s a quick breakdown:
- Net Worth = Everything you own minus everything you owe
Think of it as the big picture.
✅ Your home
✅ Your car
✅ Your retirement accounts, investments, and valuables
❌ Minus your mortgage, student loans, credit card debt, and other liabilities
It’s a great brag number—but not the full story. - Liquid Net Worth = The money you can actually use right now
💸 Your checking and savings account
💸 Cash in hand
💸 Stocks and brokerage accounts (assets you can sell quickly)
It’s the part of your wealth that’s ready to move when you move.
Why It Matters for High Net Worth Investing?
Let’s say the perfect investment lands in your lap—a killer startup, an underpriced property, or a market dip. Can you jump on it? Only if you have liquid assets ready to roll.
On the flip side, what if there’s a sudden emergency or a market crash? Liquid net worth is what helps you ride the wave, not get wiped out.
So before you start diversifying or strategizing with your financial advisor, make sure you know:
- How much of your wealth is tied up in slow-moving assets
- How much is liquid and available at a moment’s notice
Because when it comes to wealth, it’s not just what you have—it’s how fast it can move that makes all the difference.
Smart Planning: High Net Worth Investment Strategies
Credit: apsitaxes.com
Let’s get into what high net worth individuals are doing differently when it comes to financial planning:
1. Diversify Beyond the Basics
While the average investor sticks to stocks and bonds, HNWIs branch out:
- Private equity
- Hedge funds
- Real estate syndications
- Art, wine, and collectibles
This approach balances risk while accessing high-return alternatives.
2. Tax Advantages That Save Millions
High net worth tax planning is key. Here’s what savvy investors use:
- Donor advised funds for charitable giving
- Estate tax and gift taxes strategies
- Capital gains taxes optimization
Tax-loss harvesting - Tax free municipal bonds
These methods not only build wealth but protect it from the IRS.
3. Family Wealth Planning
Think generational. A HNWI family builds trust funds, buys life insurance, and uses estate planning to avoid tax disasters later. The goal? Ensure your net worth stays in the family. If you’re playing the long game, think generational wealth. High net worth families build legacies by:
- Setting up trust funds
- Using permanent life insurance as a wealth transfer tool
- Creating bulletproof estate plans to sidestep tax disasters
Because the real goal isn’t just to grow your net worth—it’s to make sure it stays in the family.
And if you’re serious about legacy planning, Artemis Advisory Services offers tailored solutions that help your money outlive you—in the best way possible.
📊 How to Calculate Your Net Worth
Credit: juno.finance
Let’s talk real numbers. Wondering how to calculate my net worth? Here’s a simple method:
- List all your assets: property, business, brokerage accounts, etc.
- Subtract liabilities: loans, mortgage, etc.
- Assess liquidity: which of these can be converted into cash?
Now you’ll know whether you’re at $1 million, $5 million, or even $20 million—and whether you’re HNWI or UHNWI level.
🤝 Do You Need a Financial Advisor?
Short answer: yes.
Long answer: You need a financial advisor who understands high net worth investing—not just someone selling products.
Look for someone like Chuck Pope, a trusted financial advisor known for handling complex portfolios for HNWI families. They help with:
- Risk management
- Portfolio diversification
- High net worth tax planning
- Trusts and foundations
- Charitable strategies like donor advised funds
UHNWI Investing: What the Ultra-Wealthy Are Doing
Let’s decode the ultra high net worth individuals playbook:
- Global real estate
- Private aviation and yacht charters as investments
- Direct business acquisitions
- Offshore trusts for tax advantages
- Alternative assets with low correlation to the stock market
If you’re nearing the $20 million net worth mark, it’s time to think like an investor, not just a saver.
🧾 Don’t Forget the Taxes
https://youtu.be/5Qr05zJo1Ho?feature=shared
Here’s the part nobody tells you until you’re deep in the millions:
The more you make, the more they take.
Once your net worth hits the $5 million+ mark, you’re playing a whole new game—where income tax, capital gains taxes, and the dreaded estate tax start chipping away at your fortune. And trust us—the IRS doesn’t miss.
That’s why high net worth financial planning isn’t just about growing your money. It’s about protecting it from being taxed into thin air.
Here’s what to keep an eye on
- Income Tax
The more you earn, the more you’re taxed—especially if you’re in the top tax bracket. - Capital Gains Tax
Selling off big investments? Say hello to taxes on your profits, unless you plan wisely. - Estate Tax
Want to pass down wealth? Without a smart strategy, your heirs could lose a chunk of it to federal and state estate taxes. - Gift Taxes & Donor-Advised Funds
Gifting money? There’s a limit before taxes kick in—unless you use tools like donor-advised funds to do it strategically.
Final Word
Summing up, when you reach high net worth territory, every decision counts. It’s no longer just about growing your money—it’s about managing risk, staying liquid, and keeping the taxman in check. The wealthy don’t just invest—they plan, protect, and pivot with purpose.
So whether you’re sitting on $1 million or $20 million, remember:
Your wealth is your power—if you know how to use it.
Now’s the time to take control. Because at this level, doing nothing? That’s the most expensive decision of all.
Don’t just have wealth—own it.
