I was curious on what people think of the CPWA compared to the CFP or other designations? I currently have the CFA and CAIA and am looking for something that is more focused on UHNW or Private Wealth. It seems as if the CFP is kind of diluted now with all their advertising and marketing
At some point, adding an additional factor of production results in smaller increases in output.
#DiminishingMarginalReturns
It can even lead to negative marginal returns: too many cooks . . . .
I would start by getting the EXP.
I see quite a few advisors including mine with a JD or JD and/or MBA.
These dudes manage in the hundreds of millions in client assets so they must be doing something right.
May I ask, what are your definitions/thresholds for high net worth and ultra-high net worth?
LMAO! You remember that well.
I already have plenty of experience, so that really doesnt matter. HNW and UNHW of 5 million plus. The CFA had very little personal finacnial planning etc so that is what I am looking for.
but shouldn’t the threshold for HNW be lower than for UHNW?
Wait, $5 million is “ultra” high net worth? Interesting. So if I own a 3br in Tribeca, I’m ultra rich… hmmm…
Say the person who bought that $5M condo in tribeca got a loan of $1.5M (30% loan). That is annual mortgage payment of $96,627 and $110,000 in prop taxes and HOA fees no less than $30,000/year equals this person is coughing up $236,600 per year just on the upkeep. So, yes, this person probably has other means of money (liquid assets in the few millions) and/or makes 7 figures or at minimum high 6 figures per year.
So, yeah safe to say any family or couple who own a $5M home anywhere in the country is considered high net worth…Although really depends on “ultra” part.
Only if you count your home equity in your net worth equation.
Edit: To make an actual contribution to this discussion, by most advisors (and especially multi-family offices) UHNW is defined using investable assets.
In my opinion…as I wrote above…if someone owns a $5M house, he or she either makes crap ton of money or in most cases, has a sizable liquid assets to help pay for all its expenses, which is probably is close to $300k that includes mortgage, prop taxes, HOA.
Many people put almost all or all of their savings into down payment of a house but this is the case for sub $1M homes. People buying +$5M homes are on a different league. Either all cash or leverage - lender knowing the owner has millions in liquid assets to back it up - to make some money and get some fat tax breaks. Not to mention people with $5M homes has one or two other homes around the country that costs a few $M.
I’m no financial advisor or planner or client portfolio manager or whatever they call themselves…but to me this family is high net worth and maybe even UHNW.
IN my very limited experience…I know only a very few people who have houses that cost over $1m. Most of them make really good money, but they are dead broke, because they have a high-consumption lifestyle that eats up all their money. Between their $3m house (which is a really, really high dollar house in West Texas), their fleet of leased luxury cars, their trips to NYC and SF to shop at Neiman Marcus and Saks, and their $25k wristwatches, there’s just not a lot of room in the budget for saving money.
I’ve mostly seen “ultra high net worth” defined as investable assets of about $20 million.
As a CPA/financial advisor, I very loosely define the terms as:
100k - 1m - “mass affluent”
1m-10m - “high net worth”
10-25m - “very high net worth”
25m+ - “ultra high net worth”
This is your total assets, not including your personal residence or other personal effects. I don’t like the term “investable assets” because many individuals have a lot of assets that they can’t invest into securities, such as closely held businesses, oil and gas mineral interests, commercial real estate, etc.
How would you classify Nery’s bitcoin (pron) friend (8m) who owns about $1 million himself, but whose parents own $8 million of pron shops and pay him $40k a year in allowance?
Not all worth is calculated in dollars, young grasshopper
gotta run my own company someday in order to jump couple levels up that ladder Greenman posted
in 5 years, i’m gonna start one. Then 10 years later, I’ll check back on that net worth ladder.
I should mention that the pron friend (8m) has a sibling, so he might have to be considered 4m. Hopefully, that does not complicate the analysis.