Would Bill Gates or Carlos Slim be able to go to the bank and just withdraw a billion? How do people define what they are worth if not all their money is in the bank?
Edit: Followup question, if you own $100 Million in a lottery and took the lump sum, where would you put that money? The people who have billions already have a plan when they invest their money, but what about a person who suddenly has allot of money to put in his standard bank account?
or do they put it in sneaky offshore bank accounts to avoid taxes.
I understand that there are stock markets, and money market funds, etc, but where do most millionaires have their millions?
Do they have, for example, a bank account with millions in it? Like, they go to Bank of America, and withdraw $300.00 from their $10 million dollar account?
Do they have it in the stock market? If so, then what do they do if they sell some stocks? Where does that "real money" end up?
Do you understand what I'm getting at?
I'm asking because I think I'm missing something when it seems like a bad idea to have alot of money in a bank. $100,000.00 and no more is FDIC insured. And it also seems somewhat silly to have all the liquid (?) assets tied up in stocks.
I do understand that some rich people buy homes, expensive cars, and other (mostly) appreciating assets. I'm not talking about that, I'm talking about what happens with the rest of their money.