Two Cents | How Rich People Hide Their Money! | Season 7 | PBS (2024)

FAQs

Where do the wealthy take their money? ›

High-net-worth individuals put money into different classifications of financial and real assets, including stocks, mutual funds, retirement accounts and real estate.

Investors continue to favor bond, income, and tech stock funds. Inflows to money market and bond funds dwarfed those of stock funds in the second quarter of 2024 as the hunt for income reigned.

What they have in liquidities is kept in private banks, but the majority of their wealth is invested (in the market, in properties etc). People who are millionaires don't have tens of millions in cash sitting about in their account. The net worth figures don't take into account liquidity.

Instead, they drive less showy cars, like Hondas, Toyotas and Fords, per Ramsey. “Most millionaires don't drive flashy cars,” Ramsey wrote on Facebook.

Here's where the world's top 0.001% are putting their money, according to wealth experts. There are about 28,420 centimillionaires globally, largely concentrated in New York City, the Bay Area, Los Angeles, London and Beijing, according to Wrise Wealth Management Singapore.

If you are a short-term investor, bank CDs and Treasury securities are a good bet. If you are investing for a longer time period, fixed or indexed annuities or even indexed universal life insurance products can provide better returns than Treasury bonds.

Millionaires prioritize avoiding consumer debt, making wise financial decisions, and aligning spending with long-term goals.

Bank of America, Citibank, and HSBC, among others, have created accounts that come with special perquisites for the ultrarich, such as personal bankers, waived fees, and the option of placing trades. The ultrarich are considered to be those with more than $30 million in assets.

New York City is home to more UHNWs than any other city in the world, with the total wealth held by its super-rich residents totalling $3 trillion, according to a new report.

The government has no regulations on the amount of money you can legally keep in your house or even the amount of money you can legally own overall. Just, the problem with keeping so much money in one place (likely in the form of cash) — it's very vulnerable to being lost.

Where do wealthy people put their money if not in the bank? ›

Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting.

JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list.

Bank of America, Citibank, and HSBC, among others, have created accounts that come with special perquisites for the ultrarich, such as personal bankers, waived fees, and the option of placing trades. The ultrarich are considered to be those with more than $30 million in assets.

Ultra-wealthy individuals invest in such assets as private and commercial real estate, land, gold, and even artwork. Real estate continues to be a popular asset class in their portfolios to balance out the volatility of stocks.

Wealthy family buys stocks, bonds, real estate, art, or other high-value assets. It strategically holds on to these assets and allows them to grow in value. The family won't owe income tax on the growth in the assets' value unless it sells them and makes a profit.

Many millionaires keep a lot of their money in cash or highly liquid cash equivalents. They establish an emergency account before ever starting to invest. Millionaires bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth.