June 18, 2024

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Is It Better to be Mass Affluent or High-Net-Worth? Weighing the Differences

2 min read

The mass affluent hanging out with the high net worth on a boat

While ‘millionaire’ might not be as weighty of a title as it was decades ago, seven figures of wealth is a significant accomplishment that indicates success and stability. Mass affluent individuals, with their robust yet accessible wealth, form a vital economic backbone in the United States, while high-net-worth individuals (HNWIs) exert more influence across markets. Exploring these groups’ nuanced characteristics and strategies can help propel you toward a brighter financial future. HNWIs have more assets than those who are mass affluent but represent a smaller section of the population.

If you’re wondering how to grow or protect your net worth, consider talking to a financial advisor.

Who Are Mass Affluent Individuals?

Mass affluent individuals have between $100,000 and $1 million liquid assets with an annual household income above $75,000. While these individuals have less financial resources than high-net-worth individuals, they make up about 26% of America’s population. They are also the second-largest economic subsection of consumers in the country, living an upper-middle-class lifestyle and holding substantial liquid assets (as opposed to illiquid assets, such as real estate).

The defining factor of mass affluent individuals is the combination of income and assets. As a result, individuals who fit part of the definition (either an income above $75,000 or assets above $100,000) aren’t mass affluent individuals.

Who Are High-Net-Worth Individuals?

A high-net-worth individual (HNWI) is a person who owns at least $1 million in liquid assets, excluding assets like a primary residence or collectibles. Because definitions of individual wealth in America have soared well beyond the $1 million mark, HNWIs fall into one of three subgroups:

  1. High-net-worth individuals (HNWIs) have liquid assets between $1 million and $5 million.

  2. Very-high-net-worth individuals (VHNWIs) have liquid assets between $5…



2023-11-11 11:34:07

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