Are You Rich, Uber Wealthy or Just Affluent?

Ferrari Enzo

In marketing a product or service it is important for a business to define their target market and then define a strategy to sell to that specific market segment. As an example Ferraris are marketed differently than Kias, It is no different in the Investment Management and Advisory business.

As a marketing man would say, a well defined target is the first principle to a successful marketing strategy. In the investment business the most common way of defining the market is based on the amount of investible assets an individual or family owns. There is no precise definition as it will vary depending on the financial institution.  Wealthy  and affluent investors  will have assets of between $100,000 and $1,000,000; high net worth individual have between $1,000,000 and $5,000,000; a very high net worth client  is defined as  between $5,000,000 and  $30,000,000 and ultra high net worth  investors have greater than $30,000,000.

In the The Merrill Lynch – Capgemini World’s Wealth Report  of 2009  it is estimated to that in  2008 there were 8.6 million High Net Worth Individuals (HNWI) worldwide representing total wealth of US$32.8 trillion, and that by  2013 HNWI wealth will be valued at $48.5 trillion. In Canada, according to the financial research firm Investor Economics,  there were 544,000 high-net-worth households in Canada. By estimates of BMO’s market research estimates there are about 27,000 homes in Canada with investment asset of greater than of $10-million.

Bottom Line

As an investor, the investment opportunities, advice and service offered to you is based to a large degree on your wealth. As the level of wealth rises, so does the quality of advice and service. It is important therefore to assure that you have the quality of investment advice you deserve.