One of the most common ways people hide their wealth in tax havens is by setting up a legal vehicle (like a corporation or trust) to hold their wealth or assets without disclosing information about their identity or about the wealth or assets held by the legal vehicle.
Where do millionaires keep their money? High-net-worth individuals put money into different classifications of financial and real assets, including stocks, mutual funds, retirement accounts and real estate.
Use insurance to manage risk
That's why they use insurance to transfer that risk and protect their assets. Aside from standard insurance policies like health, home and auto, wealthy individuals often purchase life insurance policies to provide for their family after they pass away.
Millionaires can insure their money by depositing funds in FDIC-insured accounts, NCUA-insured accounts, through IntraFi Network Deposits, or through cash management accounts. They may also allocate some of their cash to low-risk investments, such as Treasury securities or government bonds.
Maintaining privacy is crucial, so limit access to your financial information and keep personal and business matters separate. Be mindful of what you share on social media, avoiding posts that showcase excessive wealth. Living within your means helps to maintain a low profile and prevents suspicion.
The $250,000 limit applies per depositor, per FDIC-insured bank and per ownership category. This means that by opening different accounts, you can end up with much more than just $250,000 in insured funds. Insurance limits apply to the entire depository institution – not individual branches.
While it is legal to keep as much as money as you want at home, the standard limit for cash that is covered under a standard home insurance policy is $200, according to the American Property Casualty Insurance Association.
Inflation Is Eating Away at Your Funds
According to the Bureau of Labor Statistics, the average rate of inflation from April 2023 to April 2024 was 3.4%. If you've been keeping your money in a savings account with a lower yield than the rate of inflation, you should switch over to a higher-yield account.
Rich (or wealthy) people tend to have lots of free cash—and/or borrowing power—which they can spend on more goods and services. They can pay their bills easily, afford health care without worry, and often depend on a financially secure future. Their affluence can have different origins, of course.
Stealth wealth is the practice of keeping your true wealth hidden from others — even friends and family members. And though the name might bring to mind mystery, espionage, and images of the Monopoly man dressed as a ninja, the practice is anything but that.
The wealthy love to get out and support charities and nonprofits at upscale dinners, luncheons and galas. This is a fantastic medium to mingle, meet others that share your values, and to connect with them in a warm way, while supporting a good cause yourself.
But for those in the highest income brackets, the calculus is different: People with a big home can more easily get natural light and privacy, and they don't need to worry so much about heating and cooling costs. Slowly, uncovered windows have become a status symbol.
Many are warehouses for money to grow tax free, in effect subsidizing billionaire investing with taxpayer money. The super-wealthy have weaponized the tax code to hoard wealth and then take the moral high ground with philanthropy that is camouflage for taxes owed.
You can deposit $50,000 cash in your bank as long as you report it to the IRS. Your individual banking institutions may also have limits on cash deposit amounts, so check with your bank before making large cash deposits.
Can the Government Take My Money? While carrying large amounts of cash isn't necessarily illegal, you may run into trouble if the authorities believe the cash is tied to illegal activity.
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.
J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank are among some of the most popular banks for millionaires.
Certificates of deposit issued by banks and credit unions are also insured for up to $250,000, guaranteeing your deposit and any interest returns you earn. Money market accounts are worth considering as well. They're FDIC-insured and combine features of checking and savings accounts.
DDA/MMDA allows you to place funds into demand deposit and/or money market deposit accounts. You can deposit up to $100 million for each account type. With this option, you may receive expanded insurance protection and still have the flexibility to access your funds when you need them.
The classic approach to doubling your money is investing in a diversified portfolio of stocks and bonds, which is likely the best option for most investors. Investing to double your money can be done safely over several years, but there's a greater risk of losing most or all your money when you're impatient.
Qualifying criteria
Annual income of R1. 8m or Net Asset value of R15m with our FNB Fusion Private Wealth Account, your spouse or partner qualifies for the same account as you regardless of their income.