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Where do millionares bank?

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Originally posted by: SampSon
Originally posted by: lilcam
Originally posted by: SampSon
Most wealthy people have liquid assets, meaning the money doesn't really exist.
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yea im worth $430,000 in real estate but i got nothing in the bank! 🙁
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Most likely the bank holds a lein on the property, you own nothing.
😉
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dont remind me ... lol
 
Mutual Funds, retirement accounts, stocks, bonds, cds, money market.

Not banks. That's throwing away money.
 
Many bank at same places you and I do out of convenience. Chase, BoA, Wachovia, Wells Fargo, etc. These banks also have private banking for wealthy individuals. They get assigned their own personal banker who's job is to kiss their a$$. But the rich also have their assets managed by Goldman, Northern Trust, Morgan Stanley, etc. Rich are usually heavily diversified to protect and grow their wealth. You only need to get rich once and after that, it's all about protecting that wealth.
 
Originally posted by: SampSon
Originally posted by: sygyzy
Originally posted by: SampSon
Most wealthy people have liquid assets, meaning the money doesn't really exist.
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That is not what liquid means.
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Yea I figured I had the wrong terminology.
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Liquid: easily converted to cash
Illiquid: not easily converted to cash

Since most wealthy people have it tied up in stocks, they have illiquid money.
 
Originally posted by: SacrosanctFiend
Originally posted by: SampSon
Originally posted by: sygyzy
Originally posted by: SampSon
Most wealthy people have liquid assets, meaning the money doesn't really exist.
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That is not what liquid means.
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Yea I figured I had the wrong terminology.
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Liquid: easily converted to cash
Illiquid: not easily converted to cash

Since most wealthy people have it tied up in stocks, they have illiquid money.
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Stocks are very liquid and considered same as cash in most instances. You can sell stocks in seconds if you wish in most cases and you can have the funds in 3 days at the latest. Illiquid stuff is like real estate, cars, etc. Those items take longer to sell and are not considered liquid.

liquid = cash, stocks, cds, bonds, etc.
 
Originally posted by: jabamayne
Most wealthy people private bank with companies like JP Morgan Private Bank, Citigroup Private Bank, and Goldman, Sachs & Co. Bank...
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Merrill Lynch has private client banking services too.
 
But let's say someone hit the lotto and didn't really care about investing it because they already have 100 mil. Let's say they just want to stash it away and spend it at their leisure. How would they insure THAT MUCH money?
 
Originally posted by: archcommus
But let's say someone hit the lotto and didn't really care about investing it because they already have 100 mil. Let's say they just want to stash it away and spend it at their leisure. How would they insure THAT MUCH money?
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well then you'd be an idiot for throwing away millions of dollars per year
 
Originally posted by: Legend
100 million could easily make 10 million a year invested.
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And if you're someone who up till that point has made $50k/year their whole life and is already 40 years old, why would you really give a sh!t.

 
Originally posted by: archcommus
Originally posted by: Legend
100 million could easily make 10 million a year invested.
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And if you're someone who up till that point has made $50k/year their whole life and is already 40 years old, why would you really give a sh!t.
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You don't care about extra 10 mil a year? I don't care if you're Bill Gates. 10mil is 10mil.
 
Originally posted by: Naustica
Originally posted by: archcommus
Originally posted by: Legend
100 million could easily make 10 million a year invested.
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And if you're someone who up till that point has made $50k/year their whole life and is already 40 years old, why would you really give a sh!t.
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You don't care about extra 10 mil a year? I don't care if you're Bill Gates. 10mil is 10mil.
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I guess so if you're concerned about the people you'd be passing the money on to, trying to make it last for as many generations as possible. But otherwise it wouldn't matter at all.
 
If you're rich, you don't care about FDIC. The insured amount is too small. Remember, the rich is diversified. Cash portion only makes up small percentage of their assets as they have their money working for them. The cash portion they keep with solid banking/investment institutions who's going concern they don't have to question.
 
We have a CFP handle most of our money, but we maintain seperate, personal accounts at the Bank of Montreal.
 
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