Where do Millionares/Billionares keep their moola so that its safe?

Status
Not open for further replies.
Shaz07

Shaz07

cool guy
Oct 15, 2008
517
9
0
Dallas, TX
www.bluetrackmedia.com
I've always wondered where millionares/billionares keep their money. Yeah the bank is the logical answer, but I'm always afraid that banks will fail and if they do only $100k is insured by the FDIC.

I'm sure they spread it out in between many banks, but wouldn't that be a hassle? Keeping up with 10 banks, each with 100k in them, and then making new accounts as their money grows.

They could keep some of it in their homes, but they'll need a pretty badass safe for that, and even then it's not 100% safe.

So where do they keep their money so that they know its safe and insured?
 


If spreading your money around multiple banks is a "hassle" for you what the fuck are you doing in the AM game?
 
Hello friend,

I think rich invest lot money. Use money to make more money.

Buy stock buy companies buy land buy mansions. Give hedge fund for invest.

For money no invest and too much for bank maybe buy bond of government of America.

Good luck bro
 
Most will go to a wealth management firm and have it invested in "safe" stuff like bonds.
 
Most have their own investment funds or keep their networth in assets, which include real estate, stocks and so on...

For billionaires it's easier to BUY a bank than to keep their money in them.
 
ayzo said:
Most will go to a wealth management firm and have it invested in "safe" stuff like bonds.
Click to expand...


The irony and truth here is that most wealthy people DO invest and most have recently lost A LOT.

Invested in real estate? Probably lost a lot of net worth and probably a lot of actual weath too.

Invested in domestic stocks and mutual funds? Definitely lost a lot recently.

Invested in international stock and mutual funds? Most likely lost a lot recently.

Invested in precious metals? Might have made or lost money depending on how long they've had these.

Invested in "safe" bonds"? Lol (its not funny actually). Well, just ask GM bond holders how they are feeling on the eve of this bankrupcy.

Invested in the safe in your closet or the space under your bed mattress? Lost a little money every year.

The point here is, all "investments" have risk. Wealthy people tend to lose more than others because they have more money at risk.

The FDIC insures up to $250k per insured bank through the end of December 2009, per the Obama/Bush Stimulus packages, fyi.

So if you have 10 million, open up 40 different bank accounts. Or pay someone to do it. Think you can afford it?
 
Shaz07 said:
I'm sorry, I didn't know dealing with over 50-100 banks was a walk in the park. My badz my badz.
Click to expand...

Dealing with the much money is a pain in the ass. Many have a team of financial strategists and managers, but that doesn't mean they dont get creamed all to hell in an economy like we have right now.
 
until recently, cash. Now picking up property like wildfire. Paying 60% less than the peak maximum. Has to generate a 12% return on the purchase price to be worth the hassle. You'd be amazed how many 'distressed' sellers there are out there already.

Jeez. I've turned into a vulture.
 
windjc said:
The irony and truth here is that most wealthy people DO invest and most have recently lost A LOT.

Invested in real estate? Probably lost a lot of net worth and probably a lot of actual weath too.

Invested in domestic stocks and mutual funds? Definitely lost a lot recently.

Invested in international stock and mutual funds? Most likely lost a lot recently.

Invested in precious metals? Might have made or lost money depending on how long they've had these.

Invested in "safe" bonds"? Lol (its not funny actually). Well, just ask GM bond holders how they are feeling on the eve of this bankrupcy.

Invested in the safe in your closet or the space under your bed mattress? Lost a little money every year.

The point here is, all "investments" have risk. Wealthy people tend to lose more than others because they have more money at risk.

The FDIC insures up to $250k per insured bank through the end of December 2009, per the Obama/Bush Stimulus packages, fyi.

So if you have 10 million, open up 40 different bank accounts. Or pay someone to do it. Think you can afford it?
Click to expand...

lol at open 40 bank accounts

These are only paper losses and would be real had the investments been sold off.

Normally people are buying all of those things you mentioned and hold on to them for years. In 3 years everything you mentioned will probably be back up, and especially real estate will continue to climb like clockwork.

As long as we have inflation, these things climb over the long term, especially RE and precious metals.

Webferret said:
until recently, cash. Now picking up property like wildfire. Paying 60% less than the peak maximum. Has to generate a 12% return on the purchase price to be worth the hassle. You'd be amazed how many 'distressed' sellers there are out there already.

Jeez. I've turned into a vulture.
Click to expand...

NICE

I wouldn't think of it like that. You're just cleaning up the mess. Looking for distressed sellers and solving their problems is a win-win situation.

If anyone is buying property right now, they're definitely doing the economy and the sellers a big favor.
 
Webferret said:
until recently, cash. Now picking up property like wildfire. Paying 60% less than the peak maximum. Has to generate a 12% return on the purchase price to be worth the hassle. You'd be amazed how many 'distressed' sellers there are out there already.

Jeez. I've turned into a vulture.
Click to expand...


If you are buying property now you will probably do okay over the long term, but the real estate market isnt close to the bottom yet.

2 MAJOR factors on the horizon.

One, unemployment rates are going to continue to go up. The stock market is in a dead cat bounce right now and will eat it at least one more time. As long as unemployment rises, the real estate market cannot bottom out.

Two, the second and larger wave of short term interest expirations aren't going to hit for another 12-18 months. This is going to continue the wave of foreclosures.

Sure, if you guess the right markets some are closer to bottom than others. But the idea of buying houses in depressed areas, even for 20k a pop (with a 45k note) is only a GOOD idea if someone in that area will be able to pay 45k in a few years time. If, like Detriot, its headed from real bad to worse, then that 20K house maybe worth even less in 2 years.

If you are buying more expensive homes, then I guess you dont mind tieing up and risking your cash in this unstable economy. Its not worth the risk to me...yet.

The tax advantages are obvious, but no thanks on hedging my funds on the idea that things will eventually make a steady recovery.
 
heres what you do.
1. buy as much gold as you can
2. buy a heavy duty tarp and plastic wrap
3. buy a shovel
4. dig a deep hole 7 to 10 ft.
5. wrap the gold in the plastic and tarp
6. cover up the hole.
 
Webferret said:
until recently, cash. Now picking up property like wildfire. Paying 60% less than the peak maximum. Has to generate a 12% return on the purchase price to be worth the hassle. You'd be amazed how many 'distressed' sellers there are out there already.

Jeez. I've turned into a vulture.
Click to expand...


Of course, you may be talking about "flipping". If you are doing that successfully, then great. But right now, in this mad buyers market, it hardly seems worth the hassle. If you have a team of people doing it for you or you just love personally, then more power to you. Massive success to you.
 
Fat Tom said:
heres what you do.
1. buy as much gold as you can
2. buy a heavy duty tarp and plastic wrap
3. buy a shovel
4. dig a deep hole 7 to 10 ft.
5. wrap the gold in the plastic and tarp
6. cover up the hole.
Click to expand...

Thats funny. But there is some truth to it.
 
The FDIC deposit insurance is per account. So if you have 10 accounts with the same bank, they will insure 100k (250k temporarily) each.

I've been buying extremely distressed real estate and reselling. But short-term it's still going to go WAY down (especially this winter). But most of the properties I would buy, would cash-flow as rentals (which is unheard of in most parts of Cali).

For the extremely wealthy people their net worth is a number that changes daily. A lot of the people I know that did not leverage themselves aggressively are just sitting on their bad assets.

WindJC, I agree with your analysis. Everything will get worse, until unemployment starts to go down.
 
Status
Not open for further replies.
Top Bottom