Private wealth management in the United States - statistics & facts
The level of private wealth in the United States has continued to rise, reaching exponential levels in recent years. This concentration of wealth has led to a new level of economic power and influence. Private wealth has been driven by prosperous domestic markets (NYSE and NASDAQ), technological innovation, and entrepreneurial success; in turn, the number of millionaires and billionaires has soared. As of 2024, there were over 20 million individuals falling into the category of High-Net-Worth-Individual (HNWI) in the U.S., making it the country with the highest concentration of private wealth globally. This dramatic increase in wealth has not only transformed individual lives but has also significantly impacted on the development of the wealth management industry.
The wealth management industry in the U.S. is primarily centered around current HNWIs, with industry professionals working to grow the level of AUM even further through effective financial strategies. As this industry progresses it becomes more open to a wider client pool and border investment potential.
Wealth distribution
The distribution of wealth in the United States is highly uneven, with a significant difference between the richest and the poorest individuals in the country's population. The top ten percent of Americans control a sizable portion of the country's wealth. This wealth is often illiquid and handled by wealth managers on behalf of clients through investments in financial markets, both in the U.S. and abroad, business ventures, and residential and commercial real estate. Fundamental investment practices among wealth managers and advisors include risk management strategies and diversified asset allocation, contributing to the continued financial growth of clients. The concentration of wealth in the U.S. often leads to the top percentage of the population having more influence and wider access to investment opportunities. This controversial topic has grown due to an increasing struggle among middle- and working-class Americans, as an increasingly larger segment of the population has experienced restrictions due to lower income, a lack of financial education, and economic barriers. This contrast is a critical factor in the ongoing discussions about social and economic issues in the U.S.Planning for the future
Looking forward, the wealth management industry is tasked with preserving current client wealth and aiding in the planning for the continuation of generational wealth. These are both critical factors for HNWIs and wealth managers aiming to maintain a positive change in the level of assets under management (AUM). The wealth and financial advisory industry has increasingly offered tailored services. Family offices provide holistic wealth management experiences, and investment strategies are specialized to individual client needs. There has also been an increase in the range of investments offered. Sustainable and impact investing options allow investors to align their portfolios with their personal values and social impact goals. Technological advancements, surrounding fintech-driven solutions, and robo-advisor asset management, have also reshaped how wealth is managed, offering more efficient and accessible ways to manage finances. Technology has even broadened the accessibility of investing to a wider range of social classes in the United States.The wealth management industry in the U.S. is primarily centered around current HNWIs, with industry professionals working to grow the level of AUM even further through effective financial strategies. As this industry progresses it becomes more open to a wider client pool and border investment potential.
