People who earn high incomes, let's say over a million a year, where do they keep their money, banks?

Question

With the collapse of a bank in California yesterday and people losing money because FDIC only insures up to $100,000 I'm wondering where is the rich peoples money? For ex. athletes, singers, CEO's, Michael Jordan and Oprah to name a few, might earn an income in the millions. When they get their checks, (which equates to cash) what do they do with their money? I understand they invest, have trusts, property, but how do they handle the cash when they receive it at one time. It's not under a mattress. Is it that when they receive this huge check (cash), they immediately put it in some investment, swiss bank account, etc. It just isn't quite clear. Would any of them have had their money in that collapsed bank? What about future banks that might collapse. I bet if they did (the wealthy) have their money in that bank, they would get all of theirs. It would be the people with less money that we saw on the news who would actually lose out. Any suggestions? Thanks in advance.

Answer 1

Assuming that they don't own their own business.  Most rich people keep their money in the stock market and other investments.  Generally, they don't keep their money in the bank because of poor rates of returns on products generally offered by banks.

Answer 2

The truly wealthy do not keep their money in Banks and they certainly do not put it into the Stock Market. Putting your money on the Stock Market is akin to betting on a horse race where the jockey is blindfolded and his horse has two broken legs. The truly wealthy move in circles where they are invited to invest and the returns would make your eyes water.

For more information I recommend you read some of Robert Kiyosaki's books starting with "Rich Dad Poor Dad" and "Retire Young Retire Rich"

Answer 3

Duh... they spread it around in different investments.

Answer 4

THEY STORE THEIR MONEY IN PRIVATE BANKING INSTITUTIONS. THESE ARE BANKS THAT HANDLE THE FINANCES OF HIGH NET WORK INDIVIDUALS.

http://en.wikipedia.org/wiki/Private_ban...

MOST PEOPLE PUT THERE MONEY IN WHAT WE CALL RETAIL BANKS.

http://en.wikipedia.org/wiki/Retail_bank...