In Toronto, a high net worth individual is usually defined as a person with substantial financial wealth. They have a diversified portfolio of assets and often require specialized wealth management strategies. While there is no strict definition, here are some of the characteristics that are commonly considered to be high net worth individuals:
Net assets.
  • Over $1 million: This is the threshold used by many financial institutions to define a high net worth individual. Some institutions may set the threshold higher, such as $5 million or $10 million, to differentiate between different levels of wealth.
  • Investable Assets: In addition to their primary residence, such as real estate, HNWIs typically own a large number of investable assets, such as stocks, bonds, mutual funds, hedge funds, and private equity.
Income.
  • High Income: HNWIs typically have high-paying jobs or businesses and may earn more than $250,000 a year.
  • Multiple Sources of Income: Their income may come from a variety of sources, such as salary, investment income, business profits, rental income, etc.
Lifestyle.
  • High-end spending: HNWIs typically have high levels of spending on luxury goods, high-end travel, private education, etc.
  • Professional Services: They usually hire professional financial advisors, lawyers, accountants, etc. to manage their wealth and affairs.
Other features.
  • Own Multiple Properties: In addition to their primary residence, they may own vacation homes, investment properties, and more.
  • Family Business: Some HNWIs own or operate family businesses, which can be a major source of their wealth.
  • Charitable Giving: Many HNWIs are actively involved in charitable causes and make significant charitable donations.
It is important to note that “High Net Worth” is a relative concept and its definition may vary from one organization to another and from one context to another. The above characteristics are for reference only and not all HNWIs possess all these characteristics.
A common concern for high net worth individuals:
  • Wealth Preservation and Enhancement: They are concerned with effectively managing and investing their assets to achieve stable wealth growth over the long term.
  • Tax Planning: They need professional tax planning to minimize their tax burden.
  • Estate Planning: They need to have an estate plan in place to ensure that their wealth will be passed on smoothly to the next generation.
  • Risk Management: They need to manage various risks such as market risk, legal risk, political risk etc.
JZW Law is dedicated to providing Toronto’s high net worth individuals with specialized legal services, including family law, estate planning, business law and more. Our team of experienced lawyers are bilingual in Chinese and English, and are able to deeply understand our clients’ needs and provide you with customized legal solutions. We offer a free initial consultation and welcome you to contact us for more information or to schedule a consultation.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you need legal help, please consult a professional lawyer.