The 3 Net Worth Levels Where People Start Treating You Differently

[00:02] stop giving you their 1-800 customer service line and instead will give you a full attention. Then there's another level where financial adviserss start business. And then finally, there's a level where opportunities just present

[00:15] themselves to you instead of you having to find them. In this video, I'm going to go over three net worth levels where people and banks and institutions, they something that actually happened to me last year. So, last February, I was

[00:29] I noticed that I was getting hit with a $17.50 fee just for having my account open. Now, this fee was labeled as a monthly service charge. And when I went to the bank and talked to the banker in person, it was pointed out to me that

[00:43] while it was a standard fee for having my type of account, because of the assets that I held with this bank, they would be able to wave that fee for me as just gave me a little bit of a nudge and said, "Hey, come back in a few months

[00:56] fees for you because they're under my discretion. No problem. And this is the start treating you differently. And it's right around when you have $100,000. At is where you really start building credibility. So financial institutions

[01:11] going to treat you differently. Car dealerships and lenders will give you better rates. And honestly, even your friends and family might look at you banks. Once you cross around 75K to $100,000 in assets at any bank, you will

[01:25] attention from the bankers when you visit. A lot of the major banks like Wells Fargo, Chase City, and Bank of America, they have tiered levels of account that you might have. A lot of the higherend tiers of bank accounts

[01:38] will have minimums of 20K, 50K, or even $100,000 and upwards. In exchange for your loyalty, you get certain perks. So, you might be able to wave the monthly or you might get dedicated support, connection to wealth managers, and lower

[01:52] rates when it comes to home or mortgage lending. So, while waving a $20 or $35 a life-changing, it's more about the message that it sends. The bank is essentially saying, "Hey, we value you as a client, and because of that, you're

[02:06] accessible to someone who only has, say, $5,000 in their bank account." What's video, we're going to go over higher tiers of financial services because you milestone. Another type of institution that's going to treat you a lot

[02:21] is that you might start getting preapproval offers in the mail for Just to be transparent, your net worth is not the sole factor here, but usually your net worth is a good proxy for how much income you make as well as how

[02:35] creditworthy you are. So therefore, you might receive these unsolicited credit card offers in the mail. And I'm not talking about those basic cashback cards premium ones like the Chase Sapphire Preferred, the American Express Gold, or

[02:48] the Capital 1 Venture X. If you've seen my video on my credit card tier list, a S tier when it comes to credit cards because they offer you anywhere from 2 to 4% cash back in certain categories. You even get little perks like travel

[03:02] upgrades when you book certain hotels. So, what's interesting is that when you go out and apply for these cards. But clearly, when these credit card issuers their profile of the typical credit card spender, they begin to try to solicit

[03:17] you a little bit differently when you have money, it's going to be a car $100,000 in net worth, just like with great credit profile. You've been paying your bills on time. You have kept your

[03:31] that's been growing. And all of these factors car dealerships love. So when disappearing into the back office for 40 minutes trying to figure out how to make the deal work. You're getting approved quickly and getting better financing

[03:45] rates. The difference in financing a car at a 5% interest rate versus a 7% rate in interest. In this example, you can see that if you try to borrow $30,000 at 5% versus 7% of an interest rate, you save close to $2,000 in interest over

[04:01] monthly payment is also lowered just a little bit. But the bigger shift here is dealership. They are usually more willing to work with you. They're not trying to fleece you. And the follow-up calls, well, they get pretty friendly.

[04:14] options. And because they know that, you're going to have a little bit more leverage in these situations. Another area of finance where I think 100K gets you a lot further is in the world of financial advisors. It basically takes

[04:26] you from 0 to one. As a former financial adviser, I saw this firsthand. So, if your account wasn't close to 100K, we simply just had to direct you to another streamlined. In other words, when you don't have that much in assets, you get

[04:38] cookie cutter advice via an automated phone line or perhaps you get directed to a robo adviser. But when you do have, let's say, $100,000, you can unlock a personalized touch. Now, when it comes to their fees though, I personally just

[04:51] you've just crossed the $100,000 mark simply because the fee that they're assets is going to be pretty high. At $100,000, you might be one of the smaller portfolios in a financial advisor's book of business as well. So,

[05:05] deserve. Still though, it is worth noting that at 100K, you will get the attention of financial advisors. And this is remarkably different than when you have, let's say, 20K or 50K in assets. I think the most fascinating

[05:17] differently when you cross 100K is probably your friends and family. Now, they won't exactly know that you are over $100,000 in assets, but people will financial life together. Now, you probably have more confidence around

[05:30] Humphrey Yang YouTube channel, or maybe you've just stopped stressing about this level you're probably maxing out your Roth IRA, and you're able to pay for a few luxuries in your life with the discretionary income that you have.

[05:43] person in your circle of friends. And when this shift happens, it's usually your confidence with money can directly help your own friends with their financial situation. It should also reveal a lot about the nature of your

[05:57] of your success will probably naturally fade away from you, and the people that closer to you. Now, everything I just described happens at the $100,000 level. And honestly, most people don't even realize that these shifts are happening.

[06:11] dollars, you are no longer left wondering because at a million dollars, which is the net worth level two in today's video, all the financial doors, if you will, open to you and you get access to much more than you did before.

[06:24] dollars, you're not just getting fee waiverss and a friendly banker anymore. of the bank itself because most major banks have what they call a private client program where you usually need about a million dollars in assets. For

[06:38] example, at JP Morgan, you will get a dedicated relationship manager, wealth strategies, and invitations to exclusive events and experiences. You can start to see that this is straying away from the everyday banking needs into more of a

[06:52] according to this Reddit poster, a lot of the experience around the JP Morgan private client is summarized as a nice to have, but not really that necessary. different JP Morgan debit card with a phone number on the back that transfers

[07:07] them to Chase private client. They also get access to a fancy branch in downtown San Francisco and they have a dedicated relationship banker who this poster says is very nice, but they don't need her based on what she's focused on. So,

[07:19] comes to getting into one of these premier banking programs, it is still offer, which is that they want to get into more of a long-term relationship in assets, you're clearly someone that they value and they really want to get

[07:34] building your career and you're on that upward trajectory. Obviously, this will rates, lines of credit, and of course, all the networking that you want. The you differently at the million-doll mark is, I think, at the car dealership.

[07:49] While they probably treated you pretty nicely at the $100,000 level, the biggest change here is that now you can buy a car fully in cash and that you might be opting for a luxury car like a BMW, a Porsche, Mercedes, or Audi. And

[08:01] if you do opt to shop at a luxury car dealership, you're going to get some of the perks with that. For example, when you buy a BMW, Audi, Mercedes, or any car of that equivalent level, one of the perks that you get is a free loaner car

[08:13] that needs to be serviced for longer than a business day. sitting at the to be nicer and more comfortable as well. In addition, I've also personally been to a Kia dealership and a Toyota dealership in my day. And I've just

[08:27] noticed that at the higherend dealerships, the salespeople are less pushy and less aggressive. In fact, when I showed up to a Toyota dealership just I pulled up into the parking lot, people were eyeing me from far away, looking to

[08:41] car really badly. Of course, the car buying experience doesn't really change You're probably still going to be sitting there for three to four hours it comes to financing, perhaps at the million-dollar level, you can just buy

[08:55] financing. Either way, when you are buying a car as a millionaire, you and options available to you than previously, and you also get a nicer experience. When it comes to financial advisors at the million-dollar level,

[09:08] because instead of you trying to go out and find one, the adviserss are actively start reaching out to you on LinkedIn via your phone number or email, and they'll do free consultations or portfolio reviews just to get you in the

[09:22] door. You might even get invited to play a round of golf, have dinner, or attend remember earlier when I said that hiring a financial adviser with $100,000 in because of the fees relative to your assets? Well, at a million, the math can

[09:37] really start to change. You might still be paying that 1% advisory fee, which is around $10,000 per year, but hopefully in exchange for that, they're going to do some comprehensive financial planning like tax strategy, estate planning, or

[09:49] A good adviser should be able to save you more than your fee on an annual basis, and hopefully they just pay for themselves. Another option here is a flat fee financial adviser where they just charge you a flat fee for the year

[10:02] sense as your assets grow bigger and bigger as well. The fee is comes to your friends or family, the million-doll mark is a huge gamecher in better, but some people may start to make assumptions about what you can and

[10:18] can't afford. You might get asked to invest in someone's business idea. for things that you previously didn't need to pay for. And as you amass more assets, I've actually noticed that people may feel less comfortable talking

[10:31] don't relate to you anymore. When you don't have to think about the prices of food on the menu or perhaps worry about a $1,000 emergency expense, this might create a gap in some of your social dynamics. Of course, it's not going to

[10:43] people are going to be really happy for you and still open to talk about finances, and some might even relate to you even more based on how successful this level or a little bit beyond this level, I would love to hear from you in

[10:56] been. Now, I think these first two net worth levels are very achievable if you're diligent with your saving and investing. But this next level is where things really change and is usually reserved for the rich rich. So, I

[11:09] believe it's at $5 million that the entire dynamic when it comes to money, it flips upside down. You stop trying to find opportunities and instead they find you. You might get access to things that are literally legally off

[11:22] limits to everyone below this number. All right, so let's go over the banking category. At the $5 million level, you might get access to something like JP Sachs private wealth division. I wouldn't even call this banking anymore

[11:35] because these institutions will offer you full lifestyle services. For example, they'll have a concurge that helps you find a CFO to run your own financial life, like doing bookkeeping or payroll for your own staff. They can

[11:47] help you with luxury travel, hiring a private jet, or even just dealing with reason I just keep referring to JP Morgan and Chase specifically is that they have this tiered system, which is a really great visual representation of

[12:00] what happens across the entire financial world as your net worth grows. At the 150k level, there's Chase private clients. At the $1 million level, there's JP Morgan private clients. And then at 5 to$10 million in assets,

[12:12] there's JP Morgan private banking. They all sound kind of the same, but the subtle difference in one word here and there is all the difference. And almost every financial institution has some sort of tiered system like this, and

[12:24] the same customers that hit these net worth milestones. The only difference go, the more the shift becomes. You don't go find the banks anymore. The it comes to financial advisors, when you

[12:38] have around 5 to 10 million in assets, the advice isn't just buy this ETF and about multi-generational wealth planning, like setting up different trusts or vehicles that can not only save you on taxes, but also preserve

[12:50] your wealth for your kids and your grandkids. You might even unlock what's called becoming a qualified purchaser. This is somebody that gets access to venture capital investments, and maybe

[13:02] even some preIPO deals that most people can't get access to. The SEC even able to invest in higher risk like real estate, you might get access to offmarket deals that never even hit

[13:15] Zillow or Redfin because you know the agent that is touring it before it even hits the MLS listings. You might even start to get hit up by developers and properties. Beyond that though, everything from restaurant reservations

[13:28] tickets, they all just get a little bit easier. And all of these small little shifts will compound into a completely different daily experience. But let's here, which is how your friends and family will treat you at this level. At

[13:43] $5 million or more, people start coming to you not just for money advice, but I pitch you on their startup idea, and you start getting into angel investing. That's where the founder will ask you for a check size of 10K to 25 to 50K to

[13:57] could get asked by your friends for an introduction to someone that you might know via your business world. And you might even get invited to a private board just because you have some extra money lying around. All these are kind

[14:11] of strange things to navigate because it's your network that is really upgrade your network. And I would actually commend you if you're able to keep your network as humble and close to home as possible. But sometimes that's

[14:24] worth grows, you're going to start associating with different types of you start having to figure out who's in your life because they genuinely care about you versus who's there just because of how much money you have. So

[14:37] money, while it does open a lot of doors and get you a lot of opportunities, it will also make you question who's in it for the right reasons. That's why those popular and those gold digger prank videos on social media, they just get so

[14:50] many views. People that have a lot of money are guarded for good reason character. So when you have a lot of it, I think it can just definitely attract the wrong crowd. So those are the three differences in levels in my opinion. If

[15:03] my video on the three net worth milestones where life changes. That video is more about how the milestones change you and your life rather than how people perceive you. Okay, I hope to see you in that video or a future one on

[15:16] you in that video or a future one on this channel. All right. Peace.