Most private wealth managers look for clients with $1 million to $30 million in investable assets, but the exact amount depends on the firm and the services you want. Some firms start at $1 million, while others only consider clients with over $10 million. The number is just one factor, though. Deciding if private wealth management is right for you requires a deeper discussion.

What Is Private Wealth Management?

Private wealth management is a financial advisory service that combines investment management, tax planning, estate planning, retirement strategy, and other specialized services in one place. These services are tailored to your unique financial situation, not a generic plan. It’s like hiring a team to look at your entire financial life and make sure everything works together.

The services typically include:

• Financial planning built around your personal goals and timeline
• Investment management, including access to opportunities like hedge funds or private equity that most investors can’t touch on their own
• Estate and succession planning, which gets especially important when you’re dealing with complex assets or multigenerational wealth
• Tax strategy aimed at keeping more of what you earn
• Trust services and family office coordination for those who need it

Private wealth managers build close, ongoing relationships with their clients. You get more than just a portfolio; you gain a financial partner who understands your whole situation.

The Difference Between Wealth Management and Private Wealth Management

People often use these terms as if they mean the same thing, but they are different. Standard wealth management usually becomes useful when you have about $250,000 in investable assets. At this point, your finances are complex enough that a basic plan is no longer enough, and you need more advanced investment advice, tax help, and planning strategies.

Private wealth management goes a step further. It is designed for high-net-worth and ultra-high-net-worth individuals whose finances are too complex for standard advisory services. These clients may need help managing multiple businesses, charitable giving, wealth transfer across generations, and advanced tax planning. The higher minimum asset requirements reflect the greater resources needed for this level of service.

What Is a High-Net-Worth Individual?

A high-net-worth individual, or HNWI, usually has between $1 million and $5 million in liquid assets. This includes cash, stocks, bonds, and retirement accounts—anything you can turn into cash quickly. Your home, car, or art collection do not count, even though they have value, because they are not easy to sell quickly.

There’s no single official definition. Different firms draw the line in different places. But the $1 million mark in liquid assets is a widely accepted starting point, and it’s also the benchmark for accredited investor status, which opens the door to private investment opportunities that aren’t available to the general public.

What Is an Ultra-High-Net-Worth Individual?

Ultra-high-net-worth individuals, or UHNWIs, are typically defined as those with $30 million or more in investable assets. This is a small group. In 2023, roughly 148,000 individuals in the United States fell into this category. The U.S. accounts for about 35% of the global ultra-high-net-worth population.

What sets this group apart is not just the size of their portfolios, but also the complexity. Their finances often include business ownership, real estate in different locations, charitable commitments, family governance, and planning for wealth transfer across generations. Because of this, the services needed are much more involved. Many private wealth managers for UHNWIs work more like a full-service family office than a typical advisory firm.

It is important to note that about $124 trillion is expected to pass from one generation to the next over the next twenty years. This large transfer creates both opportunities and risks, which is a key reason why many ultra-high-net-worth individuals rely on private wealth management.

How to Determine Which Is Best for You

Begin by considering what you really need. If your finances are simple, such as having a retirement account, a brokerage account, and a mortgage, you likely do not need a private wealth manager. A skilled financial planner can help with that. However, if you have significant investable assets and your finances have become hard to manage alone, private wealth management may be the right choice.

Here are a few questions worth asking yourself:

• Do you have investable assets above $1 million?
• Is your tax situation complex enough that you’re worried about leaving money on the table every year?
• Are you thinking about how to transfer wealth to the next generation or to causes you care about?
• Do you have multiple income streams, business interests, or real estate holdings that need coordinated management?

If you answered yes to more than one of these questions, it is probably time to seriously consider private wealth management.

Cost is important as well. Most private wealth managers charge a fee based on assets under management, usually about 1%, though some offer flat fees. For example, if you have $5 million in assets, a 1% fee is $50,000 per year. That is a significant amount. However, if your manager saves you more through tax strategies, better returns, and smart planning, the fee can be worth it.

The main point is that private wealth management is not just about reaching a certain number. It is about whether your financial situation is complex enough to need this level of service. For many high-net-worth people nearing retirement, it makes sense.

How Guardian Resources Can Help

Guardian Resources specializes in helping high-net-worth and ultra-high-net-worth individuals protect, preserve, and transfer their wealth with confidence. Our team of certified financial professionals have helped over one hundred families and business owners navigate complex financial decisions. Regardless of where you are in your financial journey, if you need guidance on wealth planning, risk management, or legacy strategies, please feel free to reach out. We are here to help.