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Where do millionaires keep their money?

If you’re wondering what the best ways are to keep your money safe whilst ensuring it keeps working for you behind the scenes, then look no further – because we’ve put together the ultimate guide.

By LLM Reporters  |  June 17, 2022
Young content man sitting on chair in rain of flying bills content with financial independence.

Becoming a millionaire is an aspirational goal for many, and while some business owners and entrepreneurs might luck out and become an overnight success, for others, it takes hard work, dedication and many years to get there. Then, there’s the cohort who come into money in other ways, whether by being born into it, inheriting it, or benefitting from a windfall.

However you acquire your millions, knowing how and where to keep them to ensure security and long-term growth is essential to ensure you’re well prepared for the future – whether that means early retirement and lots of jet-setting around the world, or having plenty to leave to children and grandchildren when you pass.

If you’re wondering what the best ways are to keep your money safe whilst ensuring it keeps working for you behind the scenes, then look no further – because we’ve put together the ultimate guide.

Before you dive in, bear in mind that no matter what type of investment strategy you choose, you should always consult with a financial advisor or specialist accountant to ensure you get the best return on your investment.

Money market accounts are an option to consider

A money market account (MMA) is perhaps one of the most obvious places to store money for many wealthy individuals – and understandably so. These types of accounts are provided by banks and even credit unions, and although they don’t necessarily generate the highest returns in a low interest environment, they certainly offer a higher interest rate than you would expect from a savings account or standard bank account. 

A money market account (MMA) is perhaps one of the most obvious places to store money for many wealthy individuals – and understandably so

The funds placed in a money market carry a low risk compared to money invested in stocks and shares, and are fully insured and covered by the FDIC, giving you peace of mind. And, they come with a range of familiar and user-friendly benefits such as debit cards and the opportunity to write cheques.

MMAs represent legitimate investments but are cash equivalents, ensuring a degree of fluidity in how you manage your funds. This style of account is great for people with short-term ambitions instead of those looking at a longer-term investment opportunity, and although it might not be a great way to build pension funds, for a shorter turnaround, it’s worth your consideration. Similar options to an MMA include a high-yield savings account, Treasury bills and certificates of deposit.

Money market mutual funds

Another investment opportunity that carries minimal risk, money market mutual funds are the ideal choice for risk-averse people. Depending on what is held, it is possible to generate tax-free and taxable income with money market funds, with very little capital appreciation associated with this investment opportunity.

Essentially, a money market mutual fund is an open-ended mutual fund that is used to invest in short-term debt securities. Such funds are managed with the aim of maintaining stable assets through liquid investments.

Mutual funds are of benefit because they allow investors access to higher-profile portfolios they might not have been able to access by themselves through pooled funds. You will commonly find stocks, bonds, and other assets with mutual funds.

Real estate investments 

There is no denying that property investments are of considerable interest to many millionaires, and for many reasons. Perhaps most notably of which is the fact that people like tangible assets, and so bricks and mortar have long been the investment opportunity of choice for those seeking a solid return on investment. Yachts and high-ticket assets are notaries worldwide.

Yacht moored close to luxury residential apartments at Limassol Marina, Cyprus
Real estate offers very lucrative investments with thorough research and assistance from experts in this field, and large real estate portfolios are a tried and true investment opportunity, but it’s worth bearing in mind that these types of investments take a lot of time to manage

The demand for rental households provides a chance to enjoy the short-term passive rental income, while the long-term growth in the net worth of property prices means there is confidence in capital appreciation over a longer-term.

Real estate offers very lucrative investments with thorough research and assistance from experts in this field, and large real estate portfolios are a tried and true investment opportunity, but it’s worth bearing in mind that these types of investments take a lot of time to manage.

A hands-on landlord may find the role to be all-encompassing, so if you prefer your money to work harder than you do, consider employing a property management service provider to control your property assets and deliver passive income. This way, you pay for their services, but benefit from greater time freedom and in many cases, a boost in income. Many charge low management fees, making it easier to save money rather than spend it.

There are many different investment philosophies to choose from

Given there are such a wide variety of different investment strategies to choose from, it is worthwhile speaking with an expert such as an accountant or trusted financial advisor in order to discuss your options and work out the best plan of action for you personally. Growing your money isn’t always easy, but it is far from impossible, as the number of wealthy people and ultra rich investors indicate. If you want to accumulate wealth, knowing how accredited investors and rich people invest and enhance wealth is an ideal starting point – and if you already have millions to play with, it couldn’t be more important to get to grips with what’s possible.

Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.