uhnwi

Picture via Car Magazine.

At a charity auction in Florida a record price was paid for the first Rolls-Royce Phantom Drophead Coupe. The Phantom went for an impressive $2 Million Dollars [the highest bid in the auctions history].

The bulk of the money [$1.6 Million] will go to the Naples Children and Education Foundation.

1. Definition

Ultra High Net Worth Individuals are said to have over $50 Million in invested assets. Put another way; these assets, if liquidated, would produce a cash amount of over $50 Million. This differs from High Net Worth Individuals who are said to have liquid assets to a value of $1 Million.

UHNWIs have, on average, eight cars and three or four homes. Three-quarters own a jet aircraft and most have a yacht.

2. How many are there?

Rolls Royce Motor Cars have carried out research that suggests that world-wide there are 80,000 Ultra High Net Worth Individuals; a number that is growing all the time.

3. Income

See my previous story here

4. Spending Their Money

When the Ultra Wealthy spend their money it is on the following;

• Property
• Jets
• Wine
• Jewellery and Watches
• Yachts
• Cars

Many of these actually appreciate in value over time.

When the wealthy have to buy many other things they use websites like www.slwn.com which offers links to many products and service.

One of the secrets of the wealthy is passive income. When they invest in anything it is with a view to generating passive income. Once this income stream is set up it requires little or no effort.

An example might be an investment in property. Once management charges are subtracted the investor receives a regular income without any further effort. The more of these types of investment the greater the levels of passive income received and the wealthier the individual becomes.

High net worth individuals like to own the things that appreciate in value [assets] and are easy to maintain and rent everything else [liabilities].

In practice this means that if a possession ‘earns its keep’ it is ‘owned’ otherwise it would be hired or rented.

Typical Assets would be;

• Property
• Gold
• Racehorses
• Super Yachts

Typical Liabilities are;

• Cars
• Electronics