Where Do Millionaires Put Their Money?

Millionaires have a lot of money. That’s sort of what they’re known for. And yet, we never see millionaires queuing at the bank.

Where Do Millionaires Put Their Money?

Instead, those with a high net worth will put their money in places where it can continue to generate wealth.

Real estate, hedge funds, stocks, and tangible assets are all forms of investment and money storage for millionaires.

Many millionaires will take an active interest in their wealth storage, while working with money managers to ensure that net worth keeps going up.

Millionaires keep their money in a diverse array of investments and accounts, as well as tied up in tangible and intangible assets. To learn more about where millionaires put their money, take a look at this guide.

Where Do Millionaires Keep Their Money?

Cash (And Cash Equivalents)

Millionaires aren’t just walking around with large piles of cash, but most of them will make sure to have some of their assets in accessible money.

This cash can act as insurance, and as some protection against changes in the market. 

Some millionaires will keep their cash in highly protected safes and other forms of storage. However, many prefer to use liquid cash equivalents.

Treasury bills and money market mutual funds are both examples of liquid cash equivalents. These can be sold or traded quickly for cash.

Real Estate

Real estate is a popular investment, and many millionaires choose to keep large amounts of their money in property. Personal real estate is a steady investment and acts as a primary residence.

With a personal residence acquired, a millionaire can consider secondary residences and commercial real estate.

Secondary real estate investments can be rented out, providing a form of income. Commercial real estate also provides an income via offices, stadiums, malls, and other non-residential properties.

Millionaires will often have vast real estate portfolios, which much of their wealth will be tied up in. Although real estate can’t be quickly converted to cash, it often provides a steady income and a future investment.


Money kept in stocks can grow, providing an extra income with little effort. Stocks are also relatively easy to sell when needed.

The risk involved with stock trading is that they may not always provide a good return on investment.

However, millionaires will typically hire people to manage their stock portfolios, and avoid any devastating disasters. 

Stock index funds are popular with millionaires, as they are low investment and high return.

Millionaires looking to grow their wealth will often turn to the stock market and continue investing as a form of generating income.

Millionaires will sometimes have a controlling interest in a company, but some have a diverse portfolio.

Hedge Funds And Private Equity Funds

These two types of investments are similar to stocks. They are both long term investments, and provide a steady stream of income. 

Private equity funds are only available for the rich, as many require a high net worth from their investors. Private equity funds are away from the public market and act as a type of private financing.

Because of this, investors are strictly monitored.

Hedge funds take money from multiple investors and invest that money to return a high profit in a short period of time.

Money is pooled together in a hedge fund with the specific aim of generating a high return, acting as another stream of income. Hedge fund managers use strategic investments to create a profit for investors.

Retirement Funds

Even millionaires have to retire some day! To plan for this future, many of the ultrarich will keep some of their wealth stored in a retirement fund.

Assets stored in a retirement fund are also low tax, making them a good place to keep large amounts of money.

Tangible Assets

Where Do Millionaires Put Their Money?

Tangible assets are an alternative investment that may not have short term gains, but should result in long term rewards.

Alternative investments include art, cars, rare books, jewelry, and other expensive items that are unlikely to lose value. 

Millionaires will often invest in tangible assets that relate to a passion of theirs. For example, an art collection. However, it’s important to consider the long term when investing in tangible assets.

These should be objects that will keep their value, or grow in value.

Similar to tangible assets are commodities, such as gold. Commodities can be a fantastic way to store money, but they require more effort for storing and management.

But if managed correctly, commodities can result in high returns.

Intellectual Property Rights

Another form of alternative investment is intellectual property. For example, the rights to a song, book, or movie.

Unlike tangible assets, intellectual property can generate current profit, especially if your property is in high demand. People will pay to use your property, without diminishing the quality of the item in question.

Private Banking

Millionaires do use banks, but not the way you might imagine. A millionaire won’t, for example, be expected to queue and speak to a teller when they have an issue with their account.

Instead, they will work with a private bank. A private bank may be a small company designed to accommodate the needs of the rich, or a branch of a larger bank.

Banks are eager to keep their millionaire clientele very happy — they provide the bank with a large amount of disposable money. Expect a personalized service with a level of investment beyond that of a checking account.

With Their Wealth Manager

It might surprise you how much interest millionaires take in their personal finances. Many of them store their wealth in a way that will grow their net worth, so care and monitoring is vitally important.

However, most millionaires won’t be expected to manage their portfolio on their own. Instead, they’ll hire a wealth manager to make sure the money continues to work for them.

Final Thoughts

For the most part, millionaires put their money in places where it will generate more wealth.

Savings are critical to rich people, but what’s more important is ensuring capital appreciation.

In a savings account, money will just sit there. But with clever investment portfolios, the rich can use their money to get richer.

Financial Disclaimer

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Fred Combes
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