Where Do Rich People Keep their Money – The Details

Where Do Rich People Keep their Money

Millionaires or billionaires are considered as rich people and they keep their assets diversified. You will be surprised to know that most rich people keep their money in the Swiss bank because it is the safest bank to keep the money. Moreover, rich people also invest their money in business, real estate, the stock market, mutual funds, retirement accounts, and other capital ventures.

Where Reach People Keep the Money

Reach people fear devaluation, inflation, and confiscation so they keep their money with the highest level of privacy and security. Moreover, many reach people keep their money with tangible assets as well as invest in second passports to get more options and flexibility with tax optimization and asset protection. Reach people to keep their money in –

  • Cash and Cash Equivalents
  • Real Estate
  • Stocks and Stock Funds
  • Private Equity and Hedge Funds
  • Cryptocurrency

1. Cash and Cash Equivalents

Most rich people like to invest in cash and cash equivalents because it gives them flexibility. Rich people create an emergency account before they invest in any business. Moreover, rich people bank differently than us. In most cases, the rich people’s bank accounts are handled by a private banker. Moreover, they also have an asset protection lawyer who protects their assets against various legal problems. Many studies show that more than 50% of rich people keep 25% of their money in cash. They keep liquid cash to survive the market downturns as well as provide insurance for their portfolio. Cash equivalents are almost as liquid as cash and it is one of the main reasons rich people want to invest in cash equivalents. Some common examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper, Treasury bills, etc. Some of the best cash-equivalent investments where reach people invest their money are –

  1. Money market mutual funds
  2. One-month U.S. Treasury bills
  3. Short-term municipal bonds
  4. Short-term government floating rate debt
  5. Short-term corporate bonds 

2. Real Estate

This is one of the most popular investment options for rich people. Rich people find it comfortable to invest their money in various real estate because this way they can keep their money safe as well as make a profit. Rich people invest in personal real estate as well as commercial real estate like buying office buildings, hotels, stadiums, etc. Most millionaires and billionaires have large real estate portfolios. Real estate investment is like a passive income for rich people. Some of the best real estate markets for 2022 are Austin, Dallas, Nashville, and Atlanta. Below is a list of 21 USA cities where most of the rich people of USA invested their money –

  • Boise, Idaho
  • Houston, Texas
  • Dallas, Texas
  • Las Vegas, Nevada
  • Atlanta, Georgia
  • Orlando, Florida
  • Tampa, Florida
  • Spokane, Washington
  • Chicago, Illinois
  • Austin, Texas
  • Columbus, Ohio
  • Lakeland, Florida
  • Ocala, Florida
  • Birmingham, Alabama
  • Durham, North Carolina
  • Charlotte, North Carolina
  • Colorado Springs, Colorado
  • Denver, Colorado
  • Raleigh, North Carolina
  • Phoenix, Arizona
  • Seattle, Washington      

3. Stocks and Stock Funds

Many rich people want to keep their investment portfolio simple and only invest their money in stocks or stock funds. Rich people invest in index funds and dividend-paying stocks. This is a type of passive income for rich people. Moreover, billionaires usually hold a controlling interest in one or more major companies while millionaires usually hold a portfolio of few equity securities. Below is a list of 10 stocks and stock funds where millionaires and billionaires have invested their money in 2022 –

Stocks NameStock Funds Name
Lithia Motors Inc. (LAD)
Travel + Leisure Co. (TNL)
Mueller Industries Inc. (MLI)
First BanCorp (FBP)
Herc Holdings Inc. (HRI)
Devon Energy Corp. (DVN)
Marathon Oil Corp. (MRO)
Qualcomm Inc. (QCOM)
Berkshire Hathaway Inc. (BRK-A)
Micron Technology Inc. (MU)
Fidelity ZERO Large Cap Index
Shelton NASDAQ-100 Index Direct
Invesco QQQ Trust ETF
Vanguard S&P 500 ETF
SPDR S&P 500 ETF Trust
Vanguard Russell 2000 ETF
iShares Core S&P 500 ETF
Schwab S&P 500 Index Fund
Vanguard Total Stock Market ETF
SPDR Dow Jones Industrial Average ETF Trust

4. Private Equity and Hedge Funds

This type of investment option is best for multi-millionaires. The best part of public equity is, that its shares are traded on the stock exchanges. Moreover, investing in private equity means rich people can easily liquidate their investments. People with more than $250,000 in cash can usually invest in private equities as well as hedge funds. You should keep in mind that hedge funds are not similar to public equity. Hedge funds invest in stocks and funds that will provide the highest short-term profits. The 10 largest private equity funds where rich people invest their money are –

  • The Blackstone Group Inc.
  • KKR & Co. Inc.
  • CVC Capital Partners
  • The Carlyle Group Inc.
  • Thoma Bravo
  • EQT
  • Vista Equity Partners
  • TPG Capital
  • Warburg Pincus LLC
  • Neuberger Berman Group LLC

On the other hand, the largest hedge funds to invest in 2022 are –

  • BlackRock
  • AQR Capital Management
  • Bridgewater Associates
  • Renaissance Technologies
  • Elliott Asset Management
  • Two Sigma Investments
  • Millennium Management
  • D.E. Shaw & Co.
  • Tiger Global Management
  • Davidson Kempner Capital Management
  • Citadel
  • Lone Pine Capital
  • Point72 Asset Management
  • Baupost Group
  • Appaloosa Management
  • Pershing Square Capital Management       

5. Cryptocurrency

Though it’s a new trend but many people find it very comfortable to invest their money in cryptocurrency. This is because it is a safe investment option and a passive income source for rich people. Though there are some risks with cryptocurrency investment but rich people don’t mind some risks. Moreover, cryptocurrency is becoming a legitimate payment method around the world and its demand is increasing rapidly. Below is a list of cryptocurrencies that rich people like to invest their money –

  • Bitcoin
  • Ethereum
  • ApeCoin
  • Binance Coin
  • Uniswap
  • Solana
  • Dogecoin
  • Cardano
  • Terra
  • Avalanche        
Where Reach People Keep the Money

FAQs about Where Do Rich People Keep their Money

What banks do rich people use in the USA?

There is not a particular list of banks where rich people from the USA put their money. Bank of America, Citibank, Union Bank, and HSBC has a special bank account for ultra-rich people. Here, the ultra-rich are those people who have more than $30 million in assets.

How do rich people protect their money?

The rich people protect their money by using various laws. They use trust laws, corporate laws, partnership laws, etc. to protect their money and asset.

Where does Jeff Bezos keep his money?

More than 90% of Jeff Bezos’s money lies in the Amazon stock holdings.

Do rich people keep all their money in the bank?

No, rich people don’t keep all the money in the banks. Usually, they keep 20% – 30% of their money in the bank, and the rest of the money they invest in various capital ventures.

Where can I keep money besides a bank?

When it comes to keeping money, the bank is the first choice for almost all people. However, there are quite a few safe options available to keep the money instead of a bank account. They are –

  • Higher-Yield Money Market Accounts
  • Certificates of Deposit
  • Credit Unions and Online Banks
  • High-Yield Checking Accounts
  • Peer-to-Peer (P2P) Lending Services     



Last Updated on August 7, 2022 by Ana S. Sutterfield

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