Where do millionares bank?

[archcommus]

Originally posted by: brigden
We have a CFP handle most of our money, but we maintain seperate, personal accounts at the Bank of Montreal.

I didn't know you were a millionaire.

 

[Legendary]

Most large banks have private client services which accomodate things like this.

 

[Al Neri]

ladies ladies

if u got money chances are you have about 10% in liquid accounts (bank / money market accounts)

the rest is managed by a money manager or hedgefund (see SAC Capital).

 

[Legend]

I guess so if you're concerned about the people you'd be passing the money on to, trying to make it last for as many generations as possible. But otherwise it wouldn't matter at all.

It's still wasting money.

Start a scholarship fund for college students or something. Don't let it waste away.

 

[tk149]

I work at a "Private Bank" that caters to affluent clientele. We a$$-kiss every gawd@m day.

 

[Otaking]

You mean they don't put the money in the toolshed?

 

[jadinolf]

Originally posted by: mugs
I'm pretty sure they don't keep their money in bank accounts

For sure.

 

[sygyzy]

Originally posted by: tk149
I work at a "Private Bank" that caters to affluent clientele. We a$$-kiss every gawd@m day.

The question is, and nobody's been able to answer this, is how the $100k FDIC limit is dealt with. Even if you have "only" $1-2 in cash, that's still 10 seperate accounts you'd need open to be insured, private bank or not.

 

[Mill]

Originally posted by: sygyzy

Originally posted by: tk149
I work at a "Private Bank" that caters to affluent clientele. We a$$-kiss every gawd@m day.

The question is, and nobody's been able to answer this, is how the $100k FDIC limit is dealt with. Even if you have "only" $1-2 in cash, that's still 10 seperate accounts you'd need open to be insured, private bank or not.

Cash simply isn't kept on hand in random accounts. People's money stays invested in stocks, bonds, Real Estate, etc. All that stuff is not FDIC insured. They realize the risk, but when was the last bank collapse of a large bank? Right now I use Wachovia Private Banking, but we are switching everything to Raymond James.

 

[GhettoFob]

wamu

 

[intogamer]

paypal

 

[UNCjigga]

Many investment banks and boutique banks of private client groups offering services for high net-worth individuals. I remember back when I was making the rounds at banks (for employment) Merrill Lynch had a minimum requirement of $600,000, which was the lowest. I expect they have since gone up to $1 million like most others. Some of the smaller boutique banks won't even touch you unless you have a portfolio worth at least $10 million. The upside of that is these smaller firms will use a full-time fund manager and investment banker to deal almost exclusively with your assets. You can't get that level of attention from a larger bank like Merrill or Goldman.

 

[daniel1113]

They start their own banks.

 

[daniel1113]

Originally posted by: sygyzy

Originally posted by: tk149
I work at a "Private Bank" that caters to affluent clientele. We a$$-kiss every gawd@m day.

The question is, and nobody's been able to answer this, is how the $100k FDIC limit is dealt with. Even if you have "only" $1-2 in cash, that's still 10 seperate accounts you'd need open to be insured, private bank or not.

FDIC is just the minimum that most banks provide to their customers (well, the government provides the protection, but the banks can choose to use it or not). Many banks offer extra insurance for their high end customers that far surpasses the FDIC amount.

Also, since major banks fail so little these days, even the FDIC is thinking of raising the insured amount to $250,000+. Bank runs just don't happen all that much anymore.

 

[mrrman]

monte carlo...wherever theres a tax haven

 

[Josh]

Keep those stacks in the exclusive benz so when the feds come the dogs can't get a scent.

 

[alkemyst]

come to palm beach....a lot seem to bank with CitiBank. Everytime we hit the ATM to make a deposit someone has left a 6 figure+ ATM slip.

 

[Mday]

they would have accounts in regular banks. but the majority of their net worth would be in investments which would be making them money. the investments nowadays are fairly diversified (stocks, bonds, real estate, etc)

 

[hkarpf6045]

My old boss at a small business i used to work at had 1.7 million in a money market account at First national of Omaha.

 

[gotsmack]

Originally posted by: archcommus
But let's say someone hit the lotto and didn't really care about investing it because they already have 100 mil. Let's say they just want to stash it away and spend it at their leisure. How would they insure THAT MUCH money?

you could keep 100K in cash and churn the rest in t-bills or you could buy bonds and dump them on the bond market when you need cash.