What Is High Net Worth?
High net worth typically refers to individuals with investable assets above a set threshold, excluding primary residence, liabilities, and sometimes non-liquid holdings. The exact cutoff varies by institution, regulator, and country, but common benchmarks are used globally for marketing, regulation, and financial planning.
Common Net Worth Thresholds
In the United States, the Securities and Exchange Commission often classifies a high net worth investor as someone with at least $1 million in investable assets, excluding equity in a primary home. Other institutions use $1 million in total net worth or liquid net worth as a working benchmark. Internationally, thresholds differ by market and regulatory framework.
Why the Definition Matters
Net worth thresholds determine access to private banking, certain investment products, and institutional services. They also shape regulatory rules, marketing practices, and reporting requirements. For a detailed overview of investor classifications, see the SEC guidance on high net worth investor.
