The Super Wealthy and Where they Put their Funds
A lot of us have this dream of staying in a house full of money because we are rich, or a poll of money so we can flaunt it to the world, or eating on gold platted table as well as drinking champagne from the finest bottles every day. We see the rich live their lives and then we ask, where do this people keep their money and how do they utilize it.
When it comes to High Net Worth (NTW) classes, the figures matter a lot. The numbers of zeros as well as commas matter a lot and this people instead of handling their finance themselves, get financial banker from banks personally. I was going through my bank and then I realized that there is a special type of cards for high net worth classes as well as they have a different rate when it comes to fees to pay for charges and transactions.
Do real billionaires keep their money in cash?
Let me tell you one shocking thing, the richest people in the world do not have much cash roaming their bedroom or bank account. If you are thinking that a billionaire has money laying on the ground, then you are mistaking. An average billionaire would prefer to have his money invested in businesses than have it lay useless in one pool or wardrobe. Businesses? You heard me right, just the same way they invest in businesses so do they invest in other forms of investment like real estates, stocks, bonds, and so on. The total valuation for their shares in these investments determines their net worth.
Why will they keep money in the bank when the bank will do only one thing which is tax their money real hard. It is no doubt that the money kept in the bank cannot bring in enough profit compared to money being invested in businesses. Although, there are no guarantee that any business will be successful but when they are, they make the rich richer.
Key Conclusion Note
- The rich do not keep liquid cash
- The wealth of the rich is being calculated based on assets and investment shares, not money in the bank
- The bank isn’t as profitable as they portray themselves to be, investing money is preferable.
- No business is guaranteed to succeed but diversification is needed to preserve wealth.
