If you’re like most of our clients, you’ve been investing for some time, have built a rock-solid financial foundation, and have accumulated wealth along the way. As you know, building wealth isn’t just a happy accident—it’s an intentional choice, one with sacrifices and wise financial decisions along the way. One of those decisions is knowing where to keep your money (and it may be surprising to find out that it’s not just tucked away in a savings account). So, in that case . . . where do millionaires keep their money anyway?
Where Millionaires Keep Their Money
In 2022, there were 24.5 millionaires in the U.S.1 If you’re one of them, you know that there’s not just one specific formula that leads to wealth (or one place to store it either). The wealthy know that to make money, you have to be willing to make your money work for you. And many times, that means investing your dollars into assets that will increase your wealth over time like stocks, bonds, real estate, and more.
In fact, the average U.S. millionaire household has over 65% of their wealth in stocks, 25% in savings bonds, and 10% in cash.2
So, let’s take a deeper look at these top money “storage” solutions for millionaires:
1. Investments
One way to make sure your money is going to work for you is through investing. When you invest in stocks, bonds, mutual funds, and the like, you’re able to have the power of compound interest on your side.
2. Real estate
Purchasing real estate is another way millionaires invest their money. Buying real estate to turn into residential rental properties, commercial businesses, or even vacation rentals can help you build your wealth over time.
3. Cash
Believe it or not, many millionaires like to keep their cash pretty liquid. That means they keep their money in an account that not only earns them a good rate of interest, but one that allows them to access their cash if needed. These accounts are high-yield savings accounts, money market accounts, and even certificates of deposit (CD).
4. Precious metals
Another way to invest your money is in precious metals like gold and silver or even other commodities like precious jewels and art. The value of these items will rise and fall depending on demand, but many wealthy people enjoy investing their wealth here as a hobby.
5. Charitable Giving
Investing your wealth by giving may not give you a return on investment in a tangible form, but it will always make you feel good. Plus, not only will giving your wealth to charities and non-profits make an impact on your community, but it will also give you a tax refund.
If you’re looking for the right places to keep your money, you’re not alone. At SageSpring, we help our clients find the right investment solutions that help you build wealth as you gain financial freedom. Work with a financial advisor today and continue building the financial future of your dreams.