How do the rich secure their money?
Discussion
Just curious - with a guarantee limit of £75000, how do people/companies keep their money secure.
A small lottery win you can split it around several banks, but want if you had a bin lottery win and had tens of millions, or were Apple and had hundreds of millions?
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
A small lottery win you can split it around several banks, but want if you had a bin lottery win and had tens of millions, or were Apple and had hundreds of millions?
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
MitchT said:
Vixpy1 said:
Rich people don't have money in the bank, unless you are a a stupid rich person.
True, but if you're someone who isn't used to being rich, such as a lottery winner, how would you know what to do with it other than stick it in the bank?CRA2Y BL16GER said:
Just curious - with a guarantee limit of £75000, how do people/companies keep their money secure.
A small lottery win you can split it around several banks, but want if you had a bin lottery win and had tens of millions, or were Apple and had hundreds of millions?
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
When you have that much money the principal (the actual amount) isn't really that important - you have "enough". You concentrate on maximising the return (which is in effect your "salary") with commercial property, bonds, and blue chip shares, and then have a dabble on riskier stuff if you feel like it. A small lottery win you can split it around several banks, but want if you had a bin lottery win and had tens of millions, or were Apple and had hundreds of millions?
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
davepoth said:
When you have that much money the principal (the actual amount) isn't really that important - you have "enough". You concentrate on maximising the return (which is in effect your "salary") with commercial property, bonds, and blue chip shares, and then have a dabble on riskier stuff if you feel like it.
Thanks for the insight. Spx said:
Lawyers looo after it for you
Spot on here's our local 'lawyer' http://www.macclesfield-express.co.uk/news/local-n...They're thieving scum even when they're not thieving
CRA2Y BL16GER said:
Just curious - with a guarantee limit of £75000, how do people/companies keep their money secure.
Answer: Open multiple savings accounts with £75k in each.Note 1:
- The accounts need to be with different banks.
- Not different NAMES of banks but different actual BANKS.
- For example Lloyds, Halifax and Birmingham Midshires are all the same bank.
- On each bank name website you can find details of where they sit in the £75k grouping picture.
- For a couple, the limit of £75k per person means they can each hold £75k safely in the same bank.
- What's guaranteed is the saver's capital. If a bank fails before it has paid interest you won't get the interest refunded under the guarantee.
- The process of refund under the guarantee is quite slow so you might have to wait, say, a year to get your money back and you won't get interest from anyone in that period either.
- Prudent savers will save with banks that look genuinely reliable rather than relying on the guarantee to earn an extra fraction of interest.
CRA2Y BL16GER said:
Vixpy1 said:
Rich people don't have money in the bank, unless you are a a stupid rich person.
Everyone knows Apple are stupid rich.CRA2Y BL16GER said:
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
There are lots of Private Banks which are non systemic i.e. their sole line of business is providing banking services to the very rich so they are unlikley to go bust because they've lent money to sub=prime borrowers in the US (RBS), bought another bank at the wrong price (RBS), or have balance sheet wildly out of control (RBS). A friend of mine uses one of said Private Banks. He chose this particular one because it is totally non systemic (it operates manual ledger systems still as a back up) and he has his gold bullion sat in its vault with a sticker on it showing its his.
As others roperly rich people do have their own invesment funds known as Family Offices...typically invest in "hard assets"...Real Estate, Hotels, Ships etc TO have a Family Office of your own you probably need £200mil or so...most have an awful lot more.
sidicks said:
Flipfloptrader said:
Roughly $17 billion in cash and the other $177 billion in assets.
But the point is that the 'cash' isn't physical assets or deposits at banks, the majority will be money market instruments and funds.davepoth said:
CRA2Y BL16GER said:
Just curious - with a guarantee limit of £75000, how do people/companies keep their money secure.
A small lottery win you can split it around several banks, but want if you had a bin lottery win and had tens of millions, or were Apple and had hundreds of millions?
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
When you have that much money the principal (the actual amount) isn't really that important - you have "enough". You concentrate on maximising the return (which is in effect your "salary") with commercial property, bonds, and blue chip shares, and then have a dabble on riskier stuff if you feel like it. A small lottery win you can split it around several banks, but want if you had a bin lottery win and had tens of millions, or were Apple and had hundreds of millions?
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
As mentioned correctly, they have a "family office".
Generally they are INCREDIBLY conservative.
Huge amounts of real estate and bonds rather than equities or alternative asset managers (PE and HF).
They easily generate enough income even with this conservative approach (they are HUGELY wealthy remember) but their main aim is to avoid the "pie" shrinking.
walm said:
davepoth said:
CRA2Y BL16GER said:
Just curious - with a guarantee limit of £75000, how do people/companies keep their money secure.
A small lottery win you can split it around several banks, but want if you had a bin lottery win and had tens of millions, or were Apple and had hundreds of millions?
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
When you have that much money the principal (the actual amount) isn't really that important - you have "enough". You concentrate on maximising the return (which is in effect your "salary") with commercial property, bonds, and blue chip shares, and then have a dabble on riskier stuff if you feel like it. A small lottery win you can split it around several banks, but want if you had a bin lottery win and had tens of millions, or were Apple and had hundreds of millions?
Do they just stick it in a bank and hope for the best, of have a special VIP unbreakable bank somewhere.
As mentioned correctly, they have a "family office".
Generally they are INCREDIBLY conservative.
Huge amounts of real estate and bonds rather than equities or alternative asset managers (PE and HF).
They easily generate enough income even with this conservative approach (they are HUGELY wealthy remember) but their main aim is to avoid the "pie" shrinking.
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