How Do the Rich and Famous Manage Their Assets?

Wide avenues abounded with palm-trees and exotic sports cars, multi-million-dollar mansions, and art collections that rival the Louvres. It would be an understatement to say that the lives of the rich and famous are simply luxurious. With so many assets to keep track of, some wonder how the rich and famous are able to maintain their care-free and frivolous lifestyles. This page will seek to tell you everything that you may need to know about how the world’s elite keeps track of its wealth. You must also remember that their lifestyle is not unattainable; with ingenuity and determination, you too can live the way that they do.

Here is how the rich and famous manage their assets, and who they have to help them do this.

Accountants

An account is an absolute necessity. Everybody needs an accountant, whether for your needs, or the needs of the rich and famous. Accountants are able to keep track of expenditure and outgoing finances. When you live a luxurious lifestyle, frivolous purchases will likely be a staple of your day-to-day life. These purchases add up. If you do not have an accountant to keep track of them, then there will be a huge money pit you are unable to account for.

Spending Accounts

It would be very silly for the super-rich to keep all of their money in a single account, wouldn’t it? Fortunately for them, they are not quite that stupid. The super-rich will have multiple bank accounts, some for small purchases, others for large. In an ordinary small purchase account, they will keep between a thousand to a hundred thousand dollars, on average, for anything they may need to buy. These spending accounts enable them to ensure nobody can get the details to the accounts that hold much larger sums.

Liquid Funds

Liquid funds are held in a bank account that has no debit card nor checkbook. Purchases from these accounts often take at least two days to clear and are transferred to another account before purchase, ensuring that nobody can get the accounts sort code and account number. There could be anywhere from a hundred thousand dollars to a hundred million in one of these accounts. There are many safeguarding measures in place to ensure that no money can be removed without the owner’s approval and that nobody can gain access to it. They are, in their own way, a veritable Fort Knox.

Assistants

The rich and famous often pay their small bills themselves and rely upon an assistant to pay regular, expensive bills. The assistant will have access to another bank account that the person will fund depending on the sum outlined in the invoices sent to them. If the bills are many, then there will be two or three assistants there to ensure everything is in order. The invoices will be sent over once or twice a month to guarantee there are adequate funds in the bank account designated to paying bills, and to make sure the accounts do not default.

Investments

A majority of the assets owned by the super-rich are long-term investments. They may own a few short-term investments as well. These short-term investments are moved around and sold quite often, with a financial advisor handling the sales of these investments and the super-rich person seldom involving themselves in that aspect. The advisor will, of course, work in contact with the owner of the assets to make sure that they want to sell them, and communicate any important news. Other than that, the advisor will handle everything.

As for long-term investments they can be anything from a boat to a house. The long-term investments will seldom be sold unless there is an offer of purchase which warrants it. Financial advisors will likely handle these as well.

The rich and famous spend a lot of their money on investments, meaning that they always have something to fall back on if their liquid cash begins to dwindle. It is not uncommon for the super-rich to own many, many houses, and businesses at one time. They often also own companies and charities.

Charity Donations

The super-rich very often donates a lot of their money to charity. Many of them also own their charities. By donating to charity frequently they can get tax relief.

It is not uncommon for the super-rich to be the owner of at least three or four charities, and if they do not own them, then they fund them generously. It is no surprise that this is the case as if you have enough money to throw around, why not help others, and many of the world’s super-rich share this sentiment.

Now you know a few ways that the rich and famous manage their money. Their lifestyles comparatively to our own are very fascinating, and it is no surprise that we should want to know how they spend their money.

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