From HENRY to UHNW: The Financial Advisor’s Guide to Wealth Transformation

In today’s advisory landscape, many clients fall into the category of HENRYs: High earners, not rich yet. These individuals earn substantial incomes but haven’t yet built significant wealth. For financial advisors, guiding HENRYs as they progress toward High Net Worth (HNW) and potentially Ultra High Net Worth (UHNW) status presents a powerful opportunity to deliver long-term value and cultivate enduring relationships.

Understanding the HENRY Profile

HENRYs are typically in their late 20s to early 40, (e.g. younger millennials, and Gen Z) and earn between $100,000 and $500,000 annually. They are career-focused professionals in fields like tech, law, medicine, and finance, and are highly influenced by technology and social media. Despite their income, many carry substantial debt, face lifestyle inflation, and lack a structured financial plan. At the same time, they often face higher taxes as their income subjects them to both higher rates and limits or phaseouts on certain deductions or exemptions.

This article outlines key milestones in the financial journey from HENRY to HNW, providing actionable strategies for advisors to support clients. By establishing foundational habits and shifting mindsets around wealth and legacy, advisors can help clients turn income into enduring assets and deepen relationships.

The Path to High Net Worth: Milestones and Engagement Tips

1. Financial Foundations. The goal or milestone in this step is to build stability through budgeting, debt reduction, and building emergency savings. Engagement tips include:

• Use interactive tools to visualize debt payoff timelines and create a personalized debt reduction plan.
• Host workshops on financial basics with a focus on budgeting strategies creating an emergency fund.
• Send personalized checklists for financial hygiene, including tracking expenses and setting savings goals.

2. Strategic Investment Planning. Here, the focus is to maximize employer plans, diversify investments and begin wealth accumulation. Engagement tips include:

• Offer quarterly portfolio reviews to track progress and goals.
• Create custom investment roadmaps using client values (e.g., ESG, impact investing).
• Demonstrate how early investing can compound over time.

3. Lifestyle Design and Cash Flow Optimization. The goal of this step is to align spending with long-term goals and automate savings. Engagement tips include:

• Provide lifestyle audits with “what-if” scenarios to help clients visualize the impact of their spending choices.
• Share insights on balancing lifetime with legacy, including mindful spending strategies.
• Celebrate small wins (e.g., hitting savings milestones) with personalized messages to reinforce positive financial behaviors.

4. Risk Management and Protection. For this milestone, you're looking to help your client protect their income and assets with insurance and estate planning. Engagement tips include:

• Host sessions to explore risk scenarios and develop strategies for risk mitigation, focusing on income replacement and asset protection in the event of death, divorce or disability.
• Collaborate with estate attorneys or other professionals to offer bundled planning services and ensure comprehensive coverage.
• Use digital vaults to securely store and share essential documents.

5. Tax Planning and Wealth Structuring. The focus here is reducing tax burdens and preparing for future business or investment ventures. Engagement tips include:

• Offer annual tax strategy sessions in partnership with CPAs.
• Share bite-sized tax tips via email or social media, keeping clients informed of relevant tax law changes and strategies.
• Create informational videos on Roth conversions, HSAs and entity structures.

6. Mindset Shift: From Income to Assets. In this phase, net worth and legacy planning are the priority. Engagement tips include:

• Introduce net worth dashboards with regular updates to help clients track their progress and fiscal goals.
• Facilitate family conversations and legacy workshops to create a smooth wealth transition across generations.
• Share success stories of clients who transitioned from HENRY to HNW, complete with tips for your clients to try.

As HENRY clients begin prioritizing their net worth growth and legacy planning, advisors may find success in adapting their fee models to better align with this transitional phase. Charging an advice fee for financial planning services can be an effective approach for this group, especially while they are still primarily income earners rather than asset holders.

This model offers transparency and affordability, helping build trust and long-term engagement until clients are ready to shift to more comprehensive asset-based planning.

Putting It All Together

The journey from HENRY to HNW, and ultimately UHNW is more than financial — it can be aspirational, emotional and deeply personal. Advisors who combine strategic planning with meaningful engagement will help clients build wealth and a strong foundation of trust, loyalty and commitment for their long-term success.

To further enhance your advisory services and support clients through this journey, consider these next steps:

• Review your client engagement strategies and identify areas for improvement based on the stages outlined in this guide.
• Develop a comprehensive plan to address the unique needs of HENRY clients, focusing on foundational habits, strategic planning, and mindset shifts.
• Explore opportunities to collaborate with other professionals, such as estate attorneys and CPA®s, to offer holistic planning services that address your clients' evolving needs.

By adopting a proactive and client-centric approach, you can deepen your relationships with HENRY clients and guide them through every step of their wealth transformation journey.

Tara Popernik, CFA®, CFP®, a member of the LPL Spokesperson Council, simplifies complex financial topics — from estate planning and tax strategies to the evolving needs of today’s investors. Follow Tara on LinkedIn.