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Becoming High Net Worth Individual. According to Investopedia, high net worth means you have at least $1 million dollars in liquid assets, not income, assets. So when they’re speaking of this, they mean cash or assets that can be converted into cash with no LOSSES incurred. Examples are:
1.) Certificates of deposit
2.) Government bonds, etc.
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According to Byjus, stocks are not considered liquid assets because converting them to cash is conditional upon finding buyers for the stocks at the evaluated price.
Right now, there are 7.4 million HNWIs in the US & on top of that there are 331 million people. That means only 2.2% of Americans are high net worth right now, so congratulations if you made it! However, here’s the problem. If you are high net worth & you have your money in bank accounts, you’re not earning anything! BAD MOVE.
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