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Wealth Tiers: How Advisors Support Each Stage

Different tiers of wealth have varying meanings for advisors and clients. We break down the stages and their distinctions in detail.

Financial advisors work with a diverse range of clients, each at varying degrees of wealth. For instance, some focus exclusively on individuals with $1 million or more in assets, while others serve people just getting started on their saving and investing journeys. Whichever the asset level, this can directly influence the services, fees, and collaborative relationship to expect with an advisor.

In this article, we’ll highlight the different tiers of wealth and the types of financial advice that come with them, allowing you to identify where you stand and understand which type of professional you might need.

Three panels showing a young investor, a middle-aged couple, and a high net worth couple

The Wealth Tiers

Wealth is a key indicator that financial advisors use to assess the challenges, goals, and needs of their clients. In practice, they view them as tiers on a spectrum, either labeled under specific categories or, most often, denoted as ranges of net worth or investable assets. Below is a closer look at these stages, and what they may mean for you:

Beginners

Beginners, typically with a net worth of around $0 to $100,000, are just starting their saving and investing journey. Some may have padded a modest savings and begun contributing to retirement or brokerage accounts, while others are just trying to get the basics in place.

This stage is prevalent among people in their 20s or 30s, when median net worth is lower, ranging from approximately $6,500 to $23,600 according to a 2023 Empower study; however, this isn’t always the case. Others in the category may not have thought much about building wealth yet, or simply can’t because they lack the requisite income.

“Beginners often feel overwhelmed or ashamed, like they’re already behind,” says Shawna Bieda, CFP®, CDFA®, Senior Wealth Advisor at XML Financial Group. However, she notes that taking “[small], practical steps like setting up automatic savings, creating a simple emergency fund can help build momentum and show that progress is possible.”

Financial advisors can help novice clients generate confidence in their financial plan and set a foundation for future growth. That might mean designing a budget, helping manage and pay off debt, or setting up recurring deposits to savings and retirement accounts. Some beginners may also consider robo-advisors as a low-cost, automated option to invest until their finances become more complex.

“I would say the biggest hurdle that I notice with those who are just getting started is just knowing where to begin,” says Paul Ferrara, CIM®, Senior Wealth Counsellor and Client Relationship Manager at Avenue Investment Management. “There are many financial objectives that people can focus on, and it is easy to get lost in the mix: paying off the debt, establishing an emergency fund, or beginning to invest.”­­

HENRYs

HENRY (short for High Earner, Not Rich Yet) refers to individuals who earn around $100,000 to $250,000 annually but haven’t saved enough to be “rich.” The term was originally coined by a Fortune writer named Shawn Tully in 2003 and is now a common way to describe this group.

HENRYs might frequently be professionals in high-paying fields such as medicine, law, finance, business, and technology. But despite their high earnings, they may struggle to turn that income into substantial wealth.

“High-income earners often face the trap of lifestyle creep,” says Bieda. “A bigger paycheck can easily turn into a bigger mortgage, private school tuition, travel, or endless activities for kids,” she explains.

As HENRYs face pressure or tendencies to spend at the same level as their income, they inhibit themselves from practicing efficient saving and investing habits. “The solution in this case is discipline,” Bieda highlights. “Treating savings as a non-negotiable bill and automating it so wealth is built, not just spent.”

Working with an advisor can enable HENRYs to create structure for their finances and establish saving priorities and contributions. This can allow them to have a clear roadmap to goals such as retirement and growing their wealth. Beyond that, it could be meaningful to have a serious discussion with an expert about the future.

Mass Affluent

Affluent individuals (sometimes also known as “mass affluent”) are those who’ve attained a strong level of financial comfort, holding between $250,000 and $1 million in investable assets. These are people who have built real momentum in their financial lives, and while they may not always be considered “wealthy,” they’ve achieved more freedom than most. They may be homeowners, own equity in a business, have large retirement accounts, or have stacked emergency funds.

Though a sign of stability, financial comfort also presents a shift in priorities, requiring more nuance and strategic management. “When clients have saved up enough to have a good emergency fund, when their mortgage is almost paid, and they are comfortable about their future financial position, their priorities in planning change,” says Ferrara, adding that now the concern moves away from saving “into considering how to hold and increase their riches.”

Advisors at this stage focus on comprehensive planning, providing individuals, couples, and their families with the tools to plan out their future as their lives get more complex. With more saved and invested, the financially healthy must encounter pivotal decisions surrounding elements such as retirement, their estate, and tax efficiency—and how they align with their plan. And these are all aspects where a financial planning professional can lend a hand.

“Estate planning, long-term care, charitable giving, and making sure money supports not only retirement but also the family’s values” are important new focuses, according to Bieda. She continues, “This stage often brings up legacy conversations, especially around children: teaching them responsibility, deciding how much to leave, and ensuring the next generation understands both the opportunities and the responsibilities of wealth.”

High-Net-Worth (HNW)

The U.S. Securities and Exchange Commission (SEC) defines high-net-worth individuals (HNWIs) as those with at least $1 million in investable liquid or near-liquid assets (i.e., excluding their primary residence). These may be people who have built their portfolios through various means, such as owning a business, disciplined saving, smart investing, or even receiving a windfall or inheritance.

Crossing the HNW threshold carries a set of unique technical challenges and strategies. Like the affluent stage, this involves measures to protect wealth and also continue to grow it and plan to pass it to future generations. Therefore, at this portfolio size, wealth advisory is crucial for implementing financial plans, managing investments, and mitigating risk.

“The advice I give gets more complex as the wealth of clients increases,” Ferrara shares. He underlines that wealthier clients “require a more advanced process in terms of tax planning, estate planning and wealth transfer,” as well as “assistance in strategies that not only save wealth in the long term but also maximize it by investing it tax-efficiently and ensure that it continues to be inherited over the generations without erosion of its value.”

Many wealth management firms serve HNW clients exclusively or as a primary portion of their clientele. Beyond basic financial planning, they may extend services such as discretionary portfolio management, estate planning, tax optimization, charitable giving guidance, and more.

If you’re in the HNW territory, you can use this free matching tool to connect with a fiduciary advisor who supports your needs.

Ultra-High-Net-Worth (UHNW)

Ultra-high-net-worth (UHNW) is a classification that typically applies to individuals or families with investable assets exceeding $30 million. Within this range, the UHNW have highly complex, often specialized needs. While similar in a sense to HNW counterparts, UHNW clients may require a dedicated wealth management firm or family office to handle aspects such as:

  • Advanced investment management
  • Philanthropy
  • Complex taxes
  • Business succession and exit planning
  • Wealth transfer and legacy planning
  • Family trusts
  • Global assets
  • Lifestyle management

At this level, standard wealth advisory may fall short. For example, UHNW individuals may demand a more bespoke investment plan than the model portfolios that one with a smaller account may receive. They may turn to private wealth management firms, single- or multi-family offices, and professionals with high-level designations such as Certified Private Wealth Advisor (CPWA), Certified Exit Planning Advisor (CEPA), and Chartered Financial Analyst (CFA).

But even with technical planning, the numbers aren’t the only thing that can get complicated for UHNWs. Bieda points out that family communication about values and wealth should be a focal point. “Wealth can connect generations, but it can also cause conflict. Helping families talk openly about money, values, and legacy is often just as impactful as the financial strategies themselves,” she says.

Why These Distinctions Matter

Different wealth stages mean different priorities for both individuals and financial advisors. Characteristics such as net worth or number of investable assets shape one’s position in life and how a professional may approach working with them. As one’s finances grow and become more complex, often so too does the job of a professional.

“The shift to comprehensive planning usually comes when life gets more complicated,” says Bieda. “Buying a first home, raising kids, juggling careers, or going through divorce. That’s when financial planning becomes less about investing alone and more about aligning money with life goals and values.”

While a beginner may need some support on how to budget and invest, those with more complex lives and higher incomes might require a more holistic plan that accounts for several areas of their lives, including retirement, investing, taxes, estate planning, and family goals.

Bieda adds that financial guidance “naturally evolves from ‘how do we build?’ to ‘how do we protect?’ and eventually ‘how do we pass it on with intention?’” However, she emphasizes that “at every stage, whether working with a single mom just starting out, a couple putting kids through college, or a family preparing to transfer wealth, the heart of the work is the same: listening with empathy, creating clarity, and making people feel supported.”

Wherever you stand on the spectrum of wealth tiers, an advisor could provide value and point you in the right direction. To find a financial advisor right for you and your situation, you can use this free matching tool. After a brief list of questions about your needs and goals, you can schedule a call with a vetted fiduciary professional.