Where Do Millionaires Keep Their Money?

For the average person, it makes sense to keep your money in an FDIC-insured bank account. It’s convenient, for one thing, and in the rare event that your bank fails, the FDIC protects your deposits up to certain limits. But what if you’re a high-net-worth individual? Are millionaires and billionaires not insured by bank coverage? According to the firm Henley & Partners ¹ , the U.S. has six million millionaires in 2025 and 867 billionaires, ranking it first among the 10 wealthiest countries in the world. While a bank account may be part of their financial puzzle, there are a variety of other places they may keep their money.

Whether you’re a millionaire or not, a financial advisor can help you create a financial plan to reach your goals.

Where Do Rich People Keep Their Money?

Having more investable assets doesn’t negate the need for diversification or risk management. Millionaires and billionaires can have the same concerns regarding their portfolios as the average person. In terms of where the rich invest, their choices may be similar to any other investor. What’s different is the amount of money they have in their portfolios.

Here are seven places millionaires and billionaires may choose to hold their wealth.

1. Cash and Cash Equivalents

Frugal and risk-averse millionaires exist, and for those investors, cash and cash equivalents can be highly attractive. They’re typically low-risk, highly liquid and offer a modest rate of return. Examples of cash and cash equivalents that a millionaire or billionaire may hold include:

• Bank accounts, including checking and savings accounts and CDs
• U.S. Treasury bills
• Money market funds
• Commercial paper
• Short-term bonds
• Safe deposit boxes (to hold domestic and foreign currencies)

Do millionaires bank differently than the rest of us? It wouldn’t be incorrect to assume that for many of them, the answer is yes. Any bank accounts they have may be handled by a private banker who probably also manages their investments. There’s likely no standing in line at the teller’s window to make a deposit, or hitting the ATM to withdraw cash.

There are, however, ways to work around those limits. For example, the Certificate of Deposit Account Registry Service (CDARS) allows investors to expand their FDIC coverage limits by opening CD accounts through a network of partner banks. Opening accounts at the same bank with different ownership types can also keep more of your deposits covered. 

The super-rich may also open zero-balance accounts with private banks. They leave their money in cash and cash equivalents and write checks on their zero-balance account. At the end of the business day, the private bank, as custodian of their various accounts, sells off enough liquid assets to settle up for that day. This means they don’t have to worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank.

2. Real Estate

Real estate investments are a common way for millionaires and billionaires to invest their wealth. Their portfolios may include:

• Personal residences
• Apartment buildings
• Office buildings
• Hotels and resorts
• Stadiums
• Infrastructure
• Retail centers

Real estate may not be an investment to depend on for cash, but it can be lucrative in the long run, and a tried and true investment for millionaires seeking passive income. They may generate profits by leasing the properties they own and collecting rents, or buying properties low and selling high. 

The wealthy may also invest in real estate through indirect means. Rather than owning property outright, they may add real estate investment trusts (REITs), real estate mutual funds or exchange-traded funds (ETFs) and real estate notes to their portfolios.an owning property outright, they may add real estate investment trusts (REITs), real estate mutual funds or exchange-traded funds (ETFs) and real estate notes to their portfolios.

3. Stocks and Stock Funds

Stocks are a natural choice for millionaire and billionaire investors.They may invest in index funds and dividend-paying stocks, or focus on growth stocks which have the potential to generate higher returns. Some may prefer to play the long-term game, while others choose a more active investment strategy.

In the context of stock trading, the typical millionaire may not be that different from anyone else. Their investment style may offer inspiration to everyday investors who want to build a profitable portfolio. Warren Buffett, for example, is a billionaire who uses a simple buy-and-hold approach, which is appealing to a wide range of investors. 

Dividend stocks are another example of investments favored by millionaires and smaller investors alike. Many high-net-worth clients work with financial advisors to create a financial plan that includes sources of passive income. Additionally, some advisors specialize in wealth management, which typically combines investment management and financial planning services under one umbrella, and can walk clients through the benefits and risks of different passive income investments for their portfolios.

4. Private Equity and Hedge Funds

Millionaires and billionaires may seek out hedge funds or buy into a private equity fund to expand their portfolios. Each one offers a different way to take advantage of market movements. 

• Hedge funds are private investment pools that are funded by multiple investors. Unlike traditional mutual funds, hedge funds tend to use a more aggressive approach to generate returns that meet or beat the return of a particular market benchmark.
• Private equity is an investment in a company that’s not publicly traded on a stock exchange. Investors pool their money into a company to raise its value, with the goal of selling it later at a profit.

Both hedge funds and private equity often require a much higher minimum investment than the typical mutual fund or ETF. For example, you may need anywhere from $100,000 to $25 million to invest, which can put them well out of reach of the average person. Hedge fund and private equity ETFs, however, help to level the playing field as they may have a low or no minimum investment. 

5. Commodities

Commodities are materials that are used to produce or manufacture products. Millionaires and billionaires may invest in hard commodities, soft commodities or a mix of both.

Hard commodities are extracted from the earth and include:

• Gold
• Silver
• Platinum
• Crude oil
• Natural gas
• Coal

Soft commodities are cultivated, rather than extracted, and include:

• Coffee
• Corn
• Soybeans
• Sugar
• Cattle
• Pork bellies
• Orange juice

Investing in physical commodities can be costly, as the products themselves require storage. Wealthy investors may choose to trade commodities futures or options instead, which carry a higher degree of risk, but don’t have the storage requirements.

6. Alternative Investments

Some of the ultra-rich keep a portion of their money in alternative investments, which is essentially anything other than stocks, bonds or cash. Examples of alternative investments that may attract wealthy investors include:

• Fine art
• Wine and spirits
• Collectible cars
• Antiques
• Rare books
• Stamps

These are examples of tangible investments, but millionaires and billionaires can, and often do, invest in intangibles. For example, they may hold derivatives or managed futures, or choose to help companies grow through venture capital and angel investments. 

Making these types of investments often requires a large amount of capital, but crowdfunding and alternative platforms have opened some of them up to the everyday investor. Masterworks, for instance, allows investors to pool funds to buy shares in fine artworks. Vinovest, meanwhile, makes it possible to invest in vintage wines without storing them yourself.

7. Bonds and Fixed Income

Millionaires may allocate a portion of their portfolios to bonds and other fixed income instruments. These assets can provide predictable interest payments and help balance risk against more volatile investments like stocks or real estate. Common choices include:

• Government bonds
• Municipal bonds
• Corporate bonds 

Municipal bonds are particularly attractive to wealthy investors because the interest is often exempt from federal income tax, and sometimes state and local taxes as well. This tax advantage makes them an efficient way to generate income while preserving capital. High-net-worth individuals may also use laddered bond portfolios, which stagger maturity dates and provide both ongoing income and liquidity.

When Do Millionaires Use Financial Advisors?

Millionaires often rely on financial advisors to manage the growing complexity of their wealth. Large portfolios typically involve multiple asset classes, tax planning across different jurisdictions, retirement accounts, and sophisticated estate planning strategies. While some millionaires enjoy managing their own money, it’s not unusual to seek professional guidance to reduce risks and improve efficiency in both investing and long-term planning.

Financial advisors provide structure for wealth management that many busy individuals cannot create on their own. Business owners and executives, for example, often lack the time to track markets, optimize tax positions, or review estate documents. An advisor can coordinate these moving parts, ensuring investments, trusts, insurance, and cash flow work together toward long-term goals.

Even millionaires who are retired or semi-retired may benefit from advisors who manage distributions, control tax exposure, and preserve wealth for heirs. Strategic planning in this stage can involve Roth conversions, charitable giving, and trust structures, all of which require technical expertise. Advisors often serve as partners who monitor these strategies as tax laws and markets change.

The use of financial advisors varies by individual preference, but for many millionaires they are not just portfolio managers but central figures in protecting, growing, and transferring wealth. By outsourcing these responsibilities, millionaires gain time, reduce errors, and often achieve better results than they would managing every detail themselves. If you’d like to become a millionaire someday, working with a financial advisor now could set you up for success.

Bottom Line

Millionaires use a range of strategies to build portfolios that align with their goals, liquidity needs and risk tolerance. Their portfolios may include real estate, public equities, commodities, hedge funds and other alternative investments. Looking at these patterns can offer practical insights into how concentrated wealth is managed and how some of those approaches may translate to an individual investor’s plan.

To shift from overall trends to investor behavior, high-net-worth individuals often think differently about growth and risk. 

“A rich person may be less concerned with the daily fluctuations of their bank account than the average Joe. They’re often more apt than the average person to invest in assets with long-term growth prospects, such as real estate, and attracted to exclusive investments like fine art or private equity. But with more money on the line comes more risk, so high-net-worth investors typically have an advisor or a team of advisors helping to manage their portfolios and cash flow,” said Tanza Loudenback, CFP®.

Tanza Loudenback, CFP® provided the quote used in this article. Please note that Loudenback is not a participant in SmartAsset AMP, is not an employee of SmartAsset and has been compensated. The opinion voiced in the quote is for general information only and not intended to provide specific advice or recommendations.

Investing Tips

• A financial advisor can help you create a financial plan to reach your investment goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• If you want to estimate how much money you will make on an investment, SmartAsset’s free investment calculator can help you calculate your return.

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