If only $100,000 can be protected by the government, where do millionaires keep their money?

Question

Most of us aren't millionaires, but where do celebrities and others in that situation store their money. I know you can have money in more than one bank, but for one million, it would be 10 banks already.

Answer 1

This is why wealthy people diversity, and put money in various banks, stocks, and make real estate investments.

Answer 2

In a piggy bank, or a hollow book in a bookcase

Answer 3

Well for one thing you can certainly keep more money in an account than that.  It's just not all insured.  This isn't all that risky because A) banks don't default very often, and B) even a default wouldn't necessarily be 100%.  Theoretically, if the bank only had enough assets to pay 90% of their debts, you'd still be covered up to $1 million.

However, the better answer is to put the money to work against some actual assets.  If the money gets invested in real estate, or mutual funds, or treasury bills / other government bonds (very common for tax benefits) then you have something of value backing your money up.  And more importantly, you can earn interest / profit on the savings well above what a bank rate would pay.

Answer 4

10 different banks

Answer 5

I many accounts all over the world

Answer 6

I keep all my money in a sock! Granted, it's like $1.82... but still! No dirty bank is ever gonna get MY stash!

(Also, most millionaires aren't 'millionaires' in the sense of how much cash they have, it's usually invested, lies in the stock market, etc etc)

Answer 7

The $100K is per-bank, and only for cash deposits.  So, if you have more cash you put into different banks.  Other investments - stocks, bonds, etc... are not covered by the FDIC.

Answer 8

we just put it in 10 banks lol.

Answer 9

nice question.

i had to know because i plan to need this service.

many people utilize swiss banking services:

1.  http://www.howtoadvice.com/SwissBanks

2.  http://swiss-bank-accounts.com/e/index.h...

it is possible, from what i've learned, to be able to use their services without having a million in hand.

"Off shore" accounts, as in places like Panama, are an option but appear to be portrayed as not as quality as a Swiss Account.  I can not confirm this.

1.  http://www.offshore-fox.com/offshore-ban...

2.  http://www.thisismoney.co.uk/help-and-ad...

3.  http://www.articlesbase.com/personal-fin...

the Swiss appear to take the business of protecting other's assets and identiy seriously--and appears to be world renouned for this level of service.

hope this helps and hope that you'll have the need for this kind of service

take care!

Answer 10

Switzerland.banks they have been very secure there one a century and are very private too.

Answer 11

the law is written so that it is protecting no more than 100,000 dollars per account. (per bank)

You might have several  accounts in one bank all protected, like this:

J. Doe

J. L. Doe

Jane Doe

Jane L.. Doe

J. Lane Doe

Mr and Mrs J. L. doe

Plus millionaires have accounts in multiple banks, not counting things like trust funds, stocks, bonds, other investments.

Answer 12

swiss bank accounts

Answer 13

In off shore accounts