This is how the world's wealthiest people invest their money — from office buildings, to art, to crypto — according to a major survey of the super-rich (2024)

FAQs

Where do rich people invest their money? ›

Ultra-wealthy individuals invest in such assets as private and commercial real estate, land, gold, and even artwork. Real estate continues to be a popular asset class in their portfolios to balance out the volatility of stocks.

Investors make money in two ways: appreciation and income. Appreciation occurs when an asset increases in value. An investor purchases an asset in the hopes that its value will grow and they can then sell it for more than they bought it for, earning a profit.

Collecting Antiques

High-end antiques are popular among wealthy collectors; the most collected items are cars, watches, wine, and diamonds. Many collectors also like owning art and other antiques.

One of the primary reasons billionaires invest in gold is because it serves as a safe haven and store-of-value asset. During times of economic instability or market volatility, gold tends to hold its value or even appreciate, providing a level of protection for investors.

High net worth investors typically keep millions of dollars or even tens of millions in cash in their bank accounts to cover bills and unexpected expenses. Their balances are often way above the $250,000 FDIC insured limit.

Private equity and hedge funds sit adjacent to securities and trading markets. While they aren't the same thing, these two types of investment tools are popular among billionaires. They appeal to people of high net worth who can afford large investments and higher risk.

The most successful investors invest in stocks because you can make better returns than with any other investment type. Warren Buffett became a successful investor by buying shares of stocks, and you can too.

Many millionaires keep a lot of their money in cash or highly liquid cash equivalents. And they tend to establish an emergency account even before making investments. Millionaires also bank differently than the rest of us.

Gates and Buffett are the founders of the Giving Pledge. Others like Elon Musk and Mark Zuckerberg have signed it over the past decade.

Should you turn your money into gold? ›

To be clear: Gold is a good investment for some, but it's not the right move for everyone. If maximizing the growth of your investments is a priority, for example, then gold's probably not for you. Gold is typically considered a low-risk, safe haven investment — not one that offers high returns.

Freeports are the safe-deposit boxes of the offshore tax-haven world — fancy vaults where rich people store their Picassos and gold bars with maximal safety, minimal scrutiny and special tax exemptions. Not surprisingly, the classic freeport is in Geneva.

Many people find gold to be a good investment because it can act as a diversifier in a typical portfolio. It can act as a hedge during periods of high inflation and as a safe haven during market volatility. But it also does not earn income and can be subject to fluctuations in value.

Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills. They keep rolling them over to reinvest them and liquidate them when they need the cash.

Citi Private Bank is the private banking department of Citibank. Their services are reserved for worldly and wealthy individuals as well as their families. While eligible clients can get deposit accounts and retirement accounts as you'd find at any other bank, there are also many specialized products and services.

Wealthy Americans generally use credit cards the same way that everyone else does. They opt for cash back and no annual fee cards, and generally trust the big issuers. But they have some bad habits, too -- about half had an automatic payment set up, and only a third pay their statement or full balance every month.

Where Do Millionaires Put Their Money? Many high-net-worth individuals choose to put their money in checking accounts offered by major banks. But instead of opting for the standard checking account, these millionaires have access to private banking opportunities tailored to their money management needs.

Billionaires generally derive most of their income from asset appreciation, rather than salaries or bonuses. Unlike ordinary income, asset appreciation is not taxed until a gain is realized through the sale of the asset.

High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.

How to invest a million dollars to live off the interest? ›

Interest-bearing assets can be a very smart way to invest $1 million while also keeping it safe. Bonds are generally your best choice for maximizing returns, but assets like a certificate of deposit or an annuity can be useful if you want to minimize risk.

Here are the best low-risk investments in June 2023:

Series I savings bonds. Short-term certificates of deposit. Money market funds. Treasury bills, notes, bonds and TIPS.

Bonds are relatively safer. Because they're a debt security, they function as an IOU. The company pays you interest, and once the bond matures, you get your principal bank. Bonds aren't completely risk-free; there is the possibility of the issuer defaulting on its bonds or inflation reducing the value of the bond.

A home is a long-term investment. If you buy a home as a primary residence, it can increase in value over time and provide a financial windfall when you sell. You gain equity in the home over time, which can provide a source of emergency funding if your financial situation takes a turn for the worse.

“90% of all millionaires become so through owning real estate.” This famous quote from Andrew Carnegie, one of the wealthiest entrepreneurs of all time, is just as relevant today as it was more than a century ago. Some of the most successful entrepreneurs in the world have built their wealth through real estate.

Can You Keep Millions in the Bank? Keeping large amounts of money in a bank can be tricky, but it is possible. There are limits to the amount of money that is insured for each depositor at a bank — up to $250,000 per depositor with the FDIC — so the super wealthy often spread out their accounts over multiple banks.

The agency collects insurance premiums from banks so that in the event that bank becomes insolvent deposits at the financial institution are guaranteed up to a limit, at no expense to the US taxpayer. The standard deposit insurance coverage limit is $250,000 per depositor, per ownership category, per FDIC bank.

Can I ask a billionaire for money? ›

There are times when people have no choice but to seek financial help out there, and perhaps one of the best ways to do so is to ask a billionaire for financial aid. Contrary to popular belief, the world's richest people are philanthropic and interested in helping others (they do so daily).

In general, and except in specific circ*mstances as noted on certain grant applications, the foundation is unable to make grants directly to individuals. Examples of areas the foundation does not fund: Direct donations or grants to individuals.

But when the very wealthy give, the donation not only reduces income taxes, but also lowers their capital gains and estate and gift taxes. If I donate $1 billion to my private foundation, I have reduced my taxable estate by $1 billion.

Where to safely keep cash at home. Just like any other piece of paper, cash can get lost, wet or burned. Consider buying a fireproof and waterproof safe for your home. It's also useful for storing other valuables in your home such as jewelry and important personal documents.

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

Here's why rich people don't buy properties free and clear

The simple reason why most rich people do not pay cash for properties is that they can make a better investment with their money elsewhere rather than putting a large sum down on a home. * Points are equal to 1% of the loan amount and lower the interest rate.

Hedge against inflation: As inflation increases prices, purchasing power decreases. So, if you have cash, you're effectively losing money. Gold, on the other hand, is often considered a hedge against inflation. As the value of the dollar goes down, value of gold may increase.

Silver can be considered a good portfolio diversifier with moderately weak positive correlation to stocks, bonds and commodities. However, gold is considered a more powerful diversifier.

Locked in a 'car bank'

Just like you may keep your valuables in a bank's safe deposit box, the super rich keep their collectibles at a bank for cars. Exotic Classics in Syosset, New York, may look like a parking lot, but it functions more like a bank. The super-rich car collectors store their classic cars here.

Where is most gold stored in us? ›

The United States Bullion Depository at Fort Knox, Kentucky is not a production facility – it stores precious metal bullion reserves for the United States.

Bill Gates still owns more than 1% of Microsoft's shares, worth around twenty billion dollars. Gates has a lot of his financial investments held by a family office known as Cascade Investments. He also has substantial real estate holdings and an extensive collection of collectibles.

In general, though, financial experts often recommend putting between 5 and 20% of your portfolio into gold or other precious metals, though some suggest an even greater allocation.

What time of year should someone buy gold? According to GoldSilver, an online precious metals dealer, the best times of the year to purchase gold are in early January, March and early April, or from mid-June to early July.

When the supply of gold is low, and demand is high, the price will rise. Conversely, when the supply of gold is high, and demand is low, the price will fall. Additionally, other factors like interest rates, inflation, currency value, geopolitical events, and economic conditions can have an impact on gold prices.

Jeff Bezos' net worth is $139 billion as of May 2023, making him the third-richest person in the world. Bezos is the founder and former chief executive officer (CEO) of Amazon. He remains the executive chair of the company. He holds traditional investments, such as real estate, and shares in other companies.

Millionaires also bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth. There is no standing in line at the teller's window. Studies indicate that millionaires may have, on average, as much as 25% of their money in cash.

Citi Private Bank is the private banking department of Citibank. Their services are reserved for worldly and wealthy individuals as well as their families. While eligible clients can get deposit accounts and retirement accounts as you'd find at any other bank, there are also many specialized products and services.

Luxury Mogul Takes Top Spot. The world's richest person is France's Bernard Arnault, the chief executive of LVMH. With 75 brands, the luxury conglomerate owns Louis Vuitton, Christian Dior, and Tiffany.

How much cash do billionaires carry? ›

According to the new Billionaire Census from Wealth-X and UBS, the world's billionaires are holding an average of $600 million in cash each—greater than the gross domestic product of Dominica.

In Bill Gates's current portfolio as of 2023-03-31, the top 5 holdings are Microsoft Corp (MSFT), Canadian National Railway Co (CNI), Berkshire Hathaway Inc (BRK. B), Waste Management Inc (WM), Caterpillar Inc (CAT), not including call and put options.

In addition to Amgen, Inc. (NASDAQ:AMGN), other Fast Money stocks that are widely held by elite hedge funds include Tesla, Inc. (NASDAQ:TSLA), UnitedHealth Group Inc. (NYSE:UNH), and Microsoft Corporation (NASDAQ:MSFT).

Most have paid off their mortgages. In 2020, 58% of the state's equity millionaires owned their homes free and clear. Statewide, there has been a dramatic rise in the number of Californians who have paid off their mortgages, from 1.6 million households in 2000 to 2.4 million in 2020.