I know that bank accounts only insure up to $250,000, so where do the super wealthy store the rest of their money? Let’s say someone has 400 million dollars. They could split it across 3 bank accounts, but only $750,000 would be insured. I’ve heard that some investment accounts, like Vanguard, have similar limits. After they buy cars, houses, vacations, pay off debts, and give money to family, where does the rest of the money go? What if they don’t trust financial advisors, don’t want their money tied up in stocks, and prefer not to move it around to make purchases? Any thoughts?
Most of their wealth is stored in investments.
Akira said:
Most of their wealth is stored in investments.
A lot of wealth is made and kept in investments.
Akira said:
Most of their wealth is stored in investments.
Also in things like yachts, planes, and real estate. Warren Buffet lives pretty humbly compared to some billionaires, though. He’s said, ‘Possessions end up owning you.’
@Gerald
I think he has a nice place in Malibu though.
Linda3 said:
@Gerald
I think he has a nice place in Malibu though.
He’s also sitting on about $100B in stock.
Linda3 said:
@Gerald
I think he has a nice place in Malibu though.
Didn’t he sell that after his first wife passed?
Linda3 said:
@Gerald
I think he has a nice place in Malibu though.
He probably is, but the point is that compared to some, he’s not living a Bezos-style life. Also, technically, the government’s money is ours, under the IRS’s watchful eye.
@Gerald
With $30 trillion in debt, we’re all richer than the US government, technically.
Lucy said:
@Gerald
With $30 trillion in debt, we’re all richer than the US government, technically.
True, but the government has vast assets like federal lands and other holdings that balance out the debt. Also, they’ve got about $480B in gold reserves.
@Austin
I think you mean billion, not million.
Robin said:
@Austin
I think you mean billion, not million.
Yeah, you’re right. Fixed it!
Lucy said:
@Gerald
With $30 trillion in debt, we’re all richer than the US government, technically.
Are you buying gold or land? The government will eventually pass that debt to every citizen. We could end up like Weimar Germany, pushing wheelbarrows full of cash to buy bread.
@Gerald
That’s not really how things work.
@Gerald
I guess that makes me wealthier than the government since I have no debt.
@Gerald
Didn’t he sell a bunch of stock and is now sitting on billions in cash?
Wei said:
@Gerald
Didn’t he sell a bunch of stock and is now sitting on billions in cash?
Looks like it. Watch Maneco64 on YouTube for more insights.
@Gerald
No one with any sense stores wealth in depreciating assets like yachts and planes. The real money is in things like art, real estate, and diversified portfolios managed by private banks or family offices.
Akira said:
Most of their wealth is stored in investments.
Stored on a Caribbean island?
/s (kind of)
Akira said:
Most of their wealth is stored in investments.
They don’t keep much cash on hand. They keep it in investments, not swimming in vaults of gold like Scrooge McDuck.