I understand that 140 mil is invested in a dozen companies.

But what about the other 140 mil, that you want to keep around for spending money and bill paying .

And I understand keeping $300,000. In a safe at the house .

Do they trust putting that amount in a bank or 12 ?

The rich folks I know, real estate

They invest in Senators and Congressman

Not talking about where they invest,

Talking about cash.

I'm available to take care of it for you.

Farmers are famous for having safes full of cash on their property. Certain cultures ie Vietnamese keep it in their home.

Under the mattress or in a cookie jar.

Look for loose floorboards under a rug.

quote:

Originally posted by chellim1:
Look for loose floorboards under a rug.

Nahhh, that's for the bodies, I'm voting a bank account for piffling amounts like $140K.

I believe Govt change the bank laws. If the bank fails, they can issue you stock instead of cash

Generally, you'll keep your money working. Setting up a line of credit using your own assets as collateral is how you pay day to day stuff, any major purchases are done with your accountant.

quote:

Originally posted by oldbill123:
I believe Govt change the bank laws. If the bank fails, they can issue you stock instead of cash

No. If the bank fails, you definitely will still have access to your money, up to the max covered ($250k per person). That's the whole point of the FDIC.

Banks don't fail when they get to $0. They fail when they don't have the ability to cover 100% of their obligations. So if they hit 99%, they've failed, and the FDIC steps in and takes over. But the bank still has that 99% of its assets.

The FDIC does it all the time, fairly routinely. In fact, there's already been 1 bank failure in 2025. It just wasn't newsworthy. (Pulaski Savings Bank in Chicago.)

The FDIC then swiftly works behind the scenes to get the bank's operations back up and running by selling it to another bank. Often when a bank fails it's taken over by another existing bank within a day or so and things roll on seamlessly under that new bank, with that bank covering all the obligations using a combination of their own assets and all the former bank's assets together.

But sometimes the FDIC will transform the failed bank into a temporary new bank that it runs itself (a "bridge bank") over the next weeks/months until a final deal for sale to another bank is worked out. If there happened to be a shortage in assets to cover the former bank's obligations either during the downtime between FDIC takeover and the eventual deal for takeover by another bank, or after the final deal is worked out, the FDIC will supply the necessary funds for depositors from money specifically earmarked for that in their insurance fund.

Thus, either way, all depositors are made whole, and their money is still available fairly seamlessly.

The exception, in certain cases, is folks who had more than $250k on deposit at the failed bank. Though even those are able to be covered in most cases after the eventual sale of the failed bank's assets. They may just not be able to access more than the $250k FDIC limit right away, and may have to wait until the final deal shakes out to recoup most/all of the remainder, just like any of the bank's other creditors.

I sure ain’t rich so I don’t know, but I would say the best investment is land. Then after that if I had the money, I would have CDs at $250K per bank at several banks so each investment was FDIC insured. I could be completely off base as I am not rich and I am not a financial person. Just thinking out loud.

Define really rich

I had one client had about 25MM in several homes free and clear. About 20-40mm in savings deposits and another 50mm in the stock market.

Had lots of clients in 50-100mm net worth range. Commercial real estate and stock market and cash.

Several true billionaires. Most of their worth was tied up in their company. And when your a founder you can only sell so much without roiling the market so they sell what they legally can and divest into other things.

Iraqi Dinars

(Remember that from a while back?)

The really rich have nearly no need for cash. Not like you and I, who go grocery shopping or head to the hardware store for a handful of doodads.

They have people. People who manage their homes and their cars, do the laundry, cook meals. They have lawyers and accountants.

Spending money in their wallets probably gets stashed in a safe by one of their people. Or maybe they hit a bank once in a while in an emergency. For crazy piles of cash if they're headed to Vegas they have one of their people take care of it.

The uber wealthy have access to financial vehicles we do not. I expect they keep large (to us) sums in money market types of accounts where money is easily moved while getting good returns.

quote:

Originally posted by bendable:
Not talking about where they invest,

Talking about cash.

Of course all heavy hitters as far as multi millionaires and billionaires have the bulk of their wealth in investments, but they all do have a certain amount in reserve cash. The main strategy is to have cash deposits in numerous banks/private banks. Yes, FDIC will insure deposits up to $250K per bank, but the very wealthy can obviously go over this figure easily. I remember the collapse of the Silicon Valley Bank a few years back, and guys like Mark Cuban and Tom Brady had accounts in the millions in that bank, but I recall FDIC did cover uninsured monies in that bank failure.

During his lawfare days, it was reported that Trump had some difficulty in coming up with the $500 million bond in one case, and the idiotic commies went nuts, saying he was broke, he wasn't a billionaire, etc., not grasping the concept of very wealthy people having most of their money tied up in investments.

It's easy enough to have "cash" at a large brokerage firm and put the money into either short term treasuries, which are quite liquid, or buy a money market fund - of which there are many. The money markets typically take a day to sell and have the funds be good for withdrawal or wire transfer. There are also various bank deposit programs, which spread money around to various banks just under the amount of guaranteed insurance. Money market is the easiest. Current yield is about 4.2% (last time I looked).