Markets are closed for weekend.

Create an Account

Its Free and always will be!

Sign up or login with your social accounts
Birthday
Day

Wealth Woes Of High Networth Individuals

 

Think of High Networth Individuals (HNIs) and the images of plush mansions, fast cars, and foreign locales start appearing in front of you your eyes, right? That's true. They do live a high life. When you have a lot of money, living a life of luxury comes naturally. But the general perception that rich people have it is easy is to a great extent wrong. HNIs have their own share of issues which they have to see through just like any other working professionals of any class.

 

What Is The Meaning Of HNI

 

HNI simply means High Networth Individual, basically a person who is rich. There is no parameter of how rich a person has to be to sport the HNI tag, but usually, it's more to do with the liquid asset an individual possesses. In the financial world, the HNI status carries a lot of weight. Due to their big assets, HNIs demand extremely personalised services. Their wealth management and tax planning are way different than that of other retail investors.

 

The Worries Of HNIs

 

Rich people are too occupied with staying rich. To do that they are busy with their high-paying jobs or businesses. Thus they hardly have any time for making plans for their investments and planning their wealth. Let alone reading up or even sifting through financial and investment blogs or magazines. From their jobs and businesses, they earn a lot of wealth but they have little or no time to allocate the money to the right asset classes. Hence, they need a lot of help from the certified investment planners or wealth managers.

 

On top of that, HNIs demonstrate a highly confused attitude towards investment. It's not that they are indifferent towards it, but as they are spoilt for choice, as there are a lot of people offering them a lot of things at the same time. The investment planners buzz around rich people like bees around flowers. One advisor offers them an "excellent investment plan" so they take it. A few days later, different wealth manager offers them a better plan they take that too. It would be safe to say that HNIs keep lapping up every plan that is offered to them by their investment planners. Hence, there is a high possibility that their investment portfolio is usually in a mess.

 

Should HNIs Manage Their Wealth On Their Own?

 

Most of the HNIs have the intelligence to manage their own wealth. However, the question is not whether they can or cannot but the bigger question is whether they should.

Following are the reasons why people try to manage their own portfolio: Most of the people are skeptical of hiring an unfamiliar person to manage their wealth. Some HNIs look at it as a challenge or let's say an adventure – for them seeing their wealth expand by their own work gives them an intellectual stimulation. On the other hand, some rich folks are just out in the pursuit of knowledge coupled with the joy of learning. For such people, exploring the potential of new avenues of investment and designating funds becomes a game of excitement.

 

Why Do It Yourself When You Can Get It Done! Avail Wealth Management Services

 

When the right people manage your wealth in the right direction, there is no end to what you can accomplish. The biggest risk in life for people who run fast is that of running fast in the wrong direction. This is a fitting analogy for the rich investors. If they take a wrong turn, they stand to lose a lot more than what a retail investor would lose. Therefore, for HNIs it becomes doubly important to keep their investments in check. Hiring professional investment managers and planner or the full-fledged wealth management services will give the following benefits:

  • Regular Reviews of current investments
  • A systematic wealth plan would be laid out
  • Qualified professionals would guide your portfolio
  • Reporting & reviewing the status of your plans periodically

Source:  How Would You Manage Your Wealth If YOU Were An HNI ?

 

Rate this blog entry:
Market Trends - Bull Market & Bear Market
Financial Planning & Stock Investment
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Saturday, 24 August 2019

Captcha Image

Popular Investing Books

Michael W. Covel
John C. Bogle
Peter Mallouk
Nassim Nicholas Taleb
Jack D. Schwager
James Montier

Search Blogs

Most Popular Authors

Top 100 Investment Blogs

Reduce your Brokerage by 100%!!

 396 members logged in


Be a Smart & Well Informed Investor!
Join Today its Free.
Register or Login with just one Click using your Social Account