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Where do billionaires and millionaires keep their money?

Discussion in 'Topical Discussions (In Depth)' started by noctis lucis caelum, Jan 6, 2014.



  1. noctis lucis caelum

    noctis lucis caelum Silver Member Silver Miner

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    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.
     
    Last edited: Jan 6, 2014
  2. freud198

    freud198 New Member

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    Cayman islands......
     
  3. Rcpb2000

    Rcpb2000 Silver Member Silver Miner

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  4. ~BS

    ~BS Gold Member Gold Chaser

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    Most of it is in digital money and investments.

    I did have a former client of ours order huge amounts of physical FRNs and physical gold during the bank meltdown/scare. He eventually did deposit the FRNs back into his bank accounts. Not sure if he cashed out on his gold though.

    So if you're not aware, you really can order up pallets in physical FRNs from the fed. But they'll make you pay for the service. Both to get the cash in your paws, and to deposit it back into the system.
     
  5. latemetal

    latemetal Gold Member Gold Chaser

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    Sadly, tis not likely I'll ever need this information...:cry_smile:
     
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  6. historyrepete

    historyrepete Silver Member Silver Miner

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    i actually believe more wealthy,not billionaires, are "holding" their assets. i bought a liberty safe couple years ago, to me it was huge, but he he had some ft knox safes that were massive.seller said he sells to a lot suburban types. he told me a guy bought 3 of them. i believe they were priced around 5k. unfortunately for me,most of my money is in my pocket
     
  7. JFN111

    JFN111 Silver Member Silver Miner

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    I just keep my in my savings account.:party30:
    99million-atm-receipt.jpg
     
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  8. platinumdude

    platinumdude Gold Member Gold Chaser

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    Treasuries...
     
  9. Billboard

    Billboard Seeker Seeker

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    Yup.

    If you are extremely wealthy, your relationship with your bankers are different and requires a much different perspective than the average Joe. For liquidity purposes besides holding some FRNs the bulk of their cash holdings are Treasuries.

    For one, most extremely wealthy people own their banks so they are in fact part of the payment system, therefore their preferred method of trust among themselves is by holding and pledging u.s. treasuries.

    Next, for liquidity they have several lines of credit with different banks and currencies. Next is their broker accounts in securities and commodities. And then the physical assets from real estate to precious metals.
     
  10. Irons

    Irons Deep Sixed Mother Lode

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    ............................................:bear_blink:

    So I take it you are buying lunch?
     
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  11. JFN111

    JFN111 Silver Member Silver Miner

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    I can probably spring for lunch but I'm still pissed off about the $2.75 ATM fee. :realmad:
     
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  12. Uglytruth

    Uglytruth Gold Member Gold Chaser

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    Most of the rich that I know........... I don't know any billionairs...........

    1. They have no debt.
    2. The income off of conservative investments is more than they need / spend / live off of in a year so they have growth.
    3. They structure their lives to pay as littel tax as possible.
    4. Most remind you of "The Millionaire Next Door". Jeans & an older car....... do a few things but pretty much live simple, low profile, lives.
     
  13. hoarder

    hoarder Banned

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    There a big difference between someone who has a net worth of one million and a billionaire. Inflation is such that at this point in time, a millionaire is just upper middle class.
     
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  14. wallew

    wallew Gold Member Gold Chaser

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    to be considered 'old money' it has to have been in the family a MINIMUM of three generations and GENERALLY at least 100 million dollars

    guy I know IS third generation, but has less than 50 million so he is not considered old money

    as far as I know, most of his money is in Swiss accounts with some diversification in other locations - I think he did mention the Cayman Islands, but I could be mistaken

    He lives off the interest of his accounts - the funny part is he makes great money in the oil/gas markets and rarely touches his accounts

    I guess when you have it and don't need to worry about it you eventually find out what you can do to make more money and do that...

    I'll never have that problem - just too old to care about it any more
     
  15. EO 11110

    EO 11110 He Hate Me Mother Lode

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    they also build GIANT houses in fla, other states that protect it from confiscation
     
  16. hoarder

    hoarder Banned

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    The OP question calls for some clarification. No one with enough sense to amass much wealth stores that wealth in the form of "money", other than maybe a few hundred thousand in liquid accounts for present day use. A "millionaire" is someone with a net worth that could be liquidated at a million dollars, not someone who has a million dollars in the bank.
    That said, the OP question could either mean where do billionaires bank or where do billionaires store their wealth?
     
  17. Argentium

    Argentium Midas Member Midas Member

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  18. Irons

    Irons Deep Sixed Mother Lode

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    Huh? Did you say something?



    View attachment 53452
     
  19. rockriver

    rockriver Seeker Seeker

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    I don't know..
    but what I've seen is.
    a friend at a real estate auction, instead of writing a check for a deposit, wrote one for price of the property he'd just won with high bid of $200,000.

    an old couple dressed in "farmer type" wrinkled clothing at a brokerage office where everyone there looked down at them.. walking slowly, dressed poorly, driving a 10 year old dented up buick. he was retired P.E. and ww2 army air corps veteran. broker helping them was only person that gave them any respect. account there was over 2million.

    a plantation went to auction. large life insurance company went to winning bidder to offer to do the financing.. man already owned one plantation nearby.
    winning bidder wrote check for total price ( just under 20 million) with comment "that you shouldn't be bidding if you don't have the money to pay for it"

    commercial real estate builder had a multi thousand acre "ranch" in another state 2,000 miles away. I asked him if he had a plane. answer "no. they are very expensive. you would need a xxx model to do it right. and you need 10million liquid to properly do that... so I took it, he was multimillionaire, but not liquid 10million.

    many large farms in my rural area have been "in the family" for generations. values can run millions.. 2000 acres and up x 3 to 5000 per acre are owned debt free.
    so these folks have farm asset of 5million and up. but may not be liquid but for a million or two.

    large farmowner (20,000 acres+) got farm because of a series of marriages over 4 generations... interesting fact is that all new owners respected land and didn't go crazy with all the money. in fact each generation added to the farm. local bank needed more liquidity... they got a loan from farm owner of millions in cash, that bank paid off.

    privacy is important to some of these folks... a large farm will be sold over a cup of coffee or other beverage... no one ever knew that the seller was interested in selling...
    5million to 15 million $ properties... no loans involved.

    in above examples, several of these folks are major stockholders/directors in local banks.

    multimillionaire and large land owner went to local business, driving his old pickup truck dressed as usual, khakis and brogans and work shirt. age 75. wanted to purchase a 10000$
    item... handed secretary an aluminum foil wrapped package that was very cold.... she smiled at farmer. she already knew the answer of where did this come from as he had done this before... he keeps frns wrapped in aluminum foil at bottom of his freezer. he had no children.. nieces and nephews got his farm and land and rental houses and cash...
    some got a lot... some got a little... some who thought they would be getting big inheritance got -0- he was a smart man...

    coca cola stock was sold by a lot of banks a hundred years ago across the southeast... in some towns there are numerous old widows (coke widows) sitting on millions of $ of coke stock that just keep growing... you wouldn't know they were multi millionaires to see most of the widows.

    rr
     
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  20. nickndfl

    nickndfl Midas Member Site Supporter Midas Member

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    New money rich people invest in hookers & blow.
     
  21. noctis lucis caelum

    noctis lucis caelum Silver Member Silver Miner

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    I'm talking about both were do they bank it and were do they store it and who has all that money in the bank isn't there a 250,000$ limit.
     

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