What kinda banks do millionaires put their money in ??

freshb651freshb651 Posts: 6,879 ✭✭✭✭✭
edited April 2011 in Strictly Business
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Edit:WHAT kinda banks do millionaires put their money in ?

Replies

  • motrillamotrilla Posts: 2,033 ✭✭✭
    edited February 2011
    I know Warren Buffet has Billions of treasury bills which are backed by the U.S treasury so that his money stays secure unless the entire country goes bankrupt ,most "rich" peoples money is in stocks and they make profit off of dividends so they can avoid paying higher tax rates.
  • freshb651freshb651 Posts: 6,879 ✭✭✭✭✭
    edited February 2011
    so it's mostly in stocks ?,so where does a Jay-Z,or Baby keep most their money,just liquid assets after you get past a certain amount ?
  • motrillamotrilla Posts: 2,033 ✭✭✭
    edited February 2011
    freshb651 wrote: »
    so it's mostly in stocks ?,so where does a Jay-Z,or Baby keep most their money,just liquid assets after you get past a certain amount ?

    I wonder the same shit it's easy to see why Bill Gates type dudes keep their money in stocks when they have a corporation like Microsoft, but what does a dude who has 100 million do with his money I know that shit ain't in a checking account
  • S2JS2J Posts: 19,661 ✭✭✭✭✭
    edited February 2011
    freshb651 wrote: »
    so it's mostly in stocks ?,so where does a Jay-Z,or Baby keep most their money,just liquid assets after you get past a certain amount ?

    Im no expert but i highly doubt they liquidate anything, maybe ever...for what?
  • SionSion Moderator, AHH Content Producer, AHH Editor Posts: 22,751 Regulator
    edited February 2011
    freshb651 wrote: »
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    Edit:WHAT kinda banks do millionaires put their money in ?

    Normal banks & investment banks. Bank of America, Wells Fargo, US Bank, Goldman Sachs to name a few. All of those banks have wealth management divisions just for high net worth individuals. Most bank with Goldman Sachs & Bank of America (BAC does banking for some 99% of the Fortune 500, 90% of the Fortune 1000 Globally & holds 12.2% of the total deposits in the U.S).
    freshb651 wrote: »
    so it's mostly in stocks ?,so where does a Jay-Z,or Baby keep most their money,just liquid assets after you get past a certain amount ?

    For most billionaires yes it is in stocks whether its stocks of other companies or their own, MOST millionaires & billionaires dont actually have their net worth based in cash (& they shouldnt anyways). & it really depends, the common misconception is that these dudes/their companies dont have debts. Thats not true tho, like in the case of say Jay-Z where hes got a clothing co. older clothing that doesnt sell & becomes outdated is written on his books as a liability. If a supplier comes up short its considered a liability or "payables". It really depends tho but generally all of that is calculated or deducted & factored into what their net worth is. Typically, stocks & bonds are considered liquid.
    motrilla wrote: »
    I know Warren Buffet has Billions of treasury bills which are backed by the U.S treasury so that his money stays secure unless the entire country goes bankrupt ,most "rich" peoples money is in stocks and they make profit off of dividends so they can avoid paying higher tax rates.

    He banks w/ Goldman Sachs, & he uses his holding co. as his investment vehicle so his money is secure on every end. 50 Cent & Hov bank w/ Goldman sachs as well. As for Baby I dont know. Keep in mind that these bankers at these wealth management divisions dont just oversee their accounts they also allocate that capital into more profitable businesses, whether privately or publicly through stocks.
  • PicoPico ITS.GOIN.DOWN! NEG REACTION CREW Posts: 34,008 ✭✭✭✭✭
    edited April 2011
    I bank at wells fargo boo
  • Sh0tSh0t Posts: 1,162
    edited April 2011
    Many have a few regular deposit accounts and brokerage accounts for near liquid assets.

    The FDIC limit is rather meaningless as long as you keep watch on the status of your bank. If you have enough money, you can go to a small bank that will disclose their entire financial shape in statements, and be well aware of any problems. Plus, deposit holders get paid first before stock and bond holders, so if you were looking to avoid the risk, the least risky is to have a deposit, not own the stock or bonds in a bank.

    I would doubt HIGHLY most millionaires have MOST of the net worth in stocks, bonds, or anything similar.
  • HATCHIGOHATCHIGO Posts: 78
    edited April 2011
    It's called private banking, required net worth is usually $5M.
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