Where Do the Super-Rich Keep Their Money and Insure It in 2023?

As soon as you have built enough wealth the issue of keeping and multiplying it becomes crucial. In this regard, you should look up to the wealthy who have attained success and are thriving. Learn how millionaires and billionaires keep and insure their assets in the rich man’s world from the article below.

where do rich people keep their money

Consider the below investment and asset protection solutions that the International Wealth experts are ready to offer to both HNWIs, UHNWIs, and wealthy people abroad:

Where do billionaires keep cash?

As one would expect, millionaires, billionaires, and wealthy individuals never keep their money in a single place. Well aware of diversification, they managed to have accumulated their wealth for exactly this reason.

Certain places where the UHNWIs and the wealthy keep their money may come as a surprise to you.

Where do billionaires keep cash?

You might imagine that the wealthy keep investing in the stock market or making investments with high payoffs. The truth as always is out there, as most billionaires and millionaires follow 2 main rules to preserve and multiply their wealth: 

  1. Don’t waste your money
  2. Always follow Rule No. 1.

Why do people want to keep money in cash?

Since money and wealth preservation is of utmost importance, millionaire money is often kept as cash and cash equivalents. Although cash comes with relatively low returns and its purchasing power is affected by inflation, it is not volatile unlike shares or certain real estate.

Wealthy people, with millionaires and billionaires among them, are well aware of how important it is to have enough cash to cover their living expenses and any emergencies they may encounter. They tend to keep cash at hand to utilize appealing investment opportunities coming their way.

Investing all your money in particular assets may appear catastrophic. In an emergency, you may be forced to sell them at a loss to get the cash necessary to cover unforeseen expenses. Realizing it, UHNWIs and wealthy people maintain large cash reserves.

Cash equivalents like bank certificates of deposit, term deposits, and treasury bills are commonly used by millionaires and billionaires to finance current expenses. Having used cash equivalents to create an investment ladder, the wealthy are free to finance daily expenses with a higher profit margin compared to regular savings accounts.

Ladder term deposits

You will have to take certain steps to build a ladder term deposit. For one thing, you can open a 3-month FTD, a 2nd 6-month FTD, a 3rd 9-month FTD, and a 4th 12-month FTD. In 3 months, after the first FTD term expires, you will be able to withdraw cash therefrom or reinvest it for another 12 months. Feel free to do the same when your 6-month and 9-month deposits expire to reap the benefits.

If you do not withdraw any cash within the 1st year but extend your deposits instead you will get an investment ladder with a 3-month maturity. This way, you will be able to get cash therefrom every 3 months, if necessary. FYI: the interest rate in case of a 12-month FTD is often more profitable compared to interest rates associated with regular savings accounts.

Apply for Union Pay anonymous card in 1 day!

Get a card →

Where do millionaires bank their money?

You will find multiple banks that offer special accounts for HNWIs, UHNWIs, and other wealthy individuals. These accounts normally come with high minimum required balance standards. The latter may be set as high as hundreds of thousands and even millions of dollars. Occasionally, account balances may be distributed between several accounts with the same bank.

As an elite account holder, you will enjoy a number of benefits:

  • private financial advisory services
  • higher remuneration
  • lower fees and commissions.

Is it OK to keep millions in a bank?

Are banks OK for millionaires and the wealthy to keep their money? Although a challenge, keeping large amounts of money in a bank is still possible. Banks impose restrictions as to amounts that can be insured for each depositor with the bank. Say, with US banks the limit is up to USD 250,000. Aware of it, UHNWIs and other wealthy individuals often keep their money in accounts set up with several banks.

Notice blue

The International Wealth customers are welcome to have a free consultation that will come handy for those looking for the best overseas bank account. Assisted by our seasoned pros, you will discover your gem in no time:


with seasoned professionals on international
banking and where it is best to open
non-resident corporate accounts.

with seasoned professionals on international banking and where it is best to open non-resident corporate accounts.

We’ll contact you in 10 minutes

Where do rich people keep their money in investments?

Cash is not the only thing billionaires’ wealth is made of. It also includes various income-generating assets. Keep on reading to get acquainted with the corresponding investment instruments the wealthy use to build it.

Where do millionaires bank their money?


UHNWIs  and the wealthy are security-conscious, and bond investments generate a predictable income for them. Bonds are debt securities in themselves. An investor purchasing them actually lends money to a corporation, municipality, federal government, or bond-issuing organizations.

At maturity, the investor will receive interest let alone the principal amount that will be refunded to them. Payable within the bond life, the interest thereon is another income source for the wealthy investor.

Stocks and mutual funds

Many UHNWIs earn at least some of their money from stock market investments. Alternatively, the wealthy may profit from holding shares in the companies they worked for or started their career in. Although shares can be an efficient instrument to build wealth, the super-rich realize only too well they may get crushed on the stock market.

Wealthy and well-off individuals willing to protect their wealth are careful with stock investments. Not only do they diversify risks but also invest in multiple companies, industries, and sectors. You will never come across an ultra-rich or wealthy individual who would keep all their assets in stocks. UHNWIs also place cash on FTDs. 

Dividend-bearing stocks are a popular instrument to generate cash flows to cover monthly expenses of the ultra-rich. They result in monthly checks that the wealthy holders receive and represent part of the profits the business earned in the preceding quarter.

Wealthy enough investors can generate dividend income flows. As a result, they are free to live a luxury life without touching the invested funds.

Millionaires, billionaires, and the wealthy with a wish to reduce equity investment volatility use mutual funds for the above purpose. The said mutual funds are made up of stock or share baskets representing different industries. A portfolio manager buys and sells shares in a basket trying to maximize the fund owner’s returns.

When investing in a mutual fund, you purchase a share in the basket to secure automatic diversification.

Private equity funds

Private equity funds are used to collect money from investors and lend it to startups. While UHNWIs and the wealthy purchase the fund’s shares, consultants and managers cherry-pick the companies to invest in. Private equity funds may specialize in lending to certain industries or sectors. 

It is true that private equity fund investments boast excellent profit potential. Let’s not forget, however, the risks may be equally high. UHNWIs and the wealthy are well aware of the fact they have to study the potential of companies a private equity fund invests in to make a well-grounded decision as to whether the investment makes sense.

Venture capital

UHNWIs and the wealthy are free to independently lend capital to startups which is in the latter case referred to as venture capital. What they get in return is a stake in a business. 

If a startup hits it big, its founders may end up with big profits. They are equally likely to suffer losses if the startup fails. Ultra-rich and wealthy entrepreneurs providing venture capital and money to startups often manage the new company, teaching its founders the lessons they might have learned on the way to a successful startup launch.

Real estate

Real estate investments have long been a fad with HNWIs and the wealthy. It is an excellent way to earn income by purchasing residential and commercial real estate to lease it out to either individuals or companies later on. Real properties are known to grow in price as the time passes. They are a valuable source of passive income for wealthy investors who can get by thereon as their investment portfolios move up.

Alternative investment

With enough money to last them a lifetime, UHNWIs and the wealthy enjoy an opportunity to invest in some pretty unexpected things. Having no concerns about their money and retirement benefits, they are free to invest in things that although potentially profitable are bound with certain risks.

UHNWIs and the wealthy tend to invest in artwork, rarity vehicles, or furniture. Certain relatively new alternative investments are highly appealing for both millionaires, billionaires, and wealthy people per se:

Trusts for UHNWIs and the wealthy

Trusts are used to put assets under trust on behalf of the asset owner.  This is the reason why asset protection trusts exist. Those who have gone on trial often employ trusts to hide their names from press attention.

Foreign asset protection trusts are an efficient instrument for wealthy families to shelter assets. To protect themselves from court rulings, UHNWIs and the wealthy may consider setting up offshore accounts to shield their assets. 

When used reasonably, trusts are an efficient instrument to protect assets. The legal universe comes with a constellation of trusts, including, inter alia, living, irrevocable, charitable, special needs trusts, etc. Some of them give the trustor significant control powers for the duration of trust. It is essential that you stay in contact with your financial planning consultant and real estate lawyer. The above cooperation is vital to determine what trusts offer the benefits you require and minimize the likelihood of failures in the future.

Notice blue

You are encouraged to benefit from free initial consultations as to trust or fund incorporation the International Wealth profs offer to their customers.

How do millionaires insure their money?

There are HNWIs and wealthy individuals who use their public persona to make money. On personal grounds, the others may prefer to stay on the sidelines. It is a fact of life that UHNWIs and the wealthy in the public limelight often attract both positive and negative attention just like celebs.

Every year, US courts consider close to 40 mln claims and any lawsuit may potentially result in financial losses for HNWIs and the wealthy.  High-profile trials and sensational lawsuits appear to be a major public image disruptor in their case.

To avoid the above developments or mitigate the consequences thereof, UNHWIs and the wealthy can use multiple personal and business insurance policies. 

1. Personal umbrella insurance policies

Umbrella insurance policies come handy to secure extra coverage and benefits that are not offered under standard public liability cover.

Just like regular people, UHNWIs and the wealthy at times face liability for car or boat accidents. An umbrella insurance policy can be helpful in property damage litigation. Real estate investors will also use it to protect their assets. 

Startup and small business investments carry high risks. Any additional risks may potentially result in a multitude of lawsuits, and here’s where umbrella insurance policies come into play.

2. Commercial liability insurance

According to Forbes, “35% to over 50% of all small enterprises have to deal with legal claims and lawsuits”. Thus and so, UHNWIs with small business investment portfolios should obtain a commercial general liability policy.

3. Directors and officers liability insurance

Corporations see to it that their members are insured against liability and risks. These are as a rule third-party claims against a company manager. At times though managers may face claims filed against them by company employees or members.

Say, an ex-employee may sue a company manager or the business itself after termination. With a directors and officers liability insurance, company officials are insured against the below risks:

  • gross negligence, damaging statements and/or information
  • incompetent and irresponsible job performance
  • inability to perform job tasks.

Faced with the necessity to testify in court, a company member may harm the company’s image and its net worth may suffer as a result. 

The above is another reason to insure business directors and officers.

4. Professional liability insurance

UHNWIs and the wealthy occasionally advise each other on doing business yet their business tips and recommendations may appear incompetent. As a result, the party asking for advice and recommendations is likely to suffer financial losses. In this case, a lawsuit is a distinct possibility.

Hence, it would be wise for insurance companies to consider professional liability insurance plans for their wealthy customers. Considering UHNWIs are liable for inflicting physical harm, it is logical that they shall have an opportunity to obtain a professional liability insurance policy.

5. Special insurance policies for UHNWIs

It is no secret that accidents occur day and night and anyone can suffer therein or cause harm to somebody else. With this in mind, insurers come with one-of-a-kind offers for UHNWIs and the wealthy providing for individual risk coverage that makes it possible for the above UHNWIs to not worry about their money.

Under their insurance policies, UHNWIs and the wealthy are free to cover multiple risks. Say, they can insure themselves against liability for alleged sexual violence and sexual abuse, alleged assault, battery, etc. 

To book a free initial consultation as to asset protection and more, feel free to contact the International Wealth pros at info@internationalwealth.info.

Please read other interesting articles at InternationalWealth.info portal:

Please help us make the portal even more informative, up-to-date, and valuable for you and your business.

Your email address will not be published.