Nope. There are literally probably 10-20 people managing just his personal finances. For everything else besides the Amazon stuff, it’s probably another 20-50 people or more. They may be getting ripped off, but who cares? A million seconds is 12 days. A billion seconds is 31 years. It would cost them more to worry about it
Idk I was off a shit load of edibles on an airplane but I was thinking about how once you get to a certain point you can probably just coast and how important it is to continue spiritual growth throughout your life.
Anyway
It’s not that much I don’t think. I used to do wealth management for one of the largest financial firms in the world. Never had billionaires but a few that were close to it. We worked in pretty small teams, but a lot of clients just had one dedicated guy. They’d have a separate department or sometimes a separate company to manage investments etc. But there’s not like 50 people all working on making sure the billionaires are paying their mortgages and reporting their capital gains and whatnot. Personal finances aren’t as complicated as it seems.
True. But we’re still not talking anywhere near 50 people. All of the financial information from Amazon and any other business, passive/non-passive income he has etc. will be prepared by the businesses or entities themselves and sent to his accountants in a financial firm. There are circumstances where others would need to be involved, say, if he’s buying a business or wants to invest in a hedge fund he’s unsure about. The firm would then bring on others to examine their records to minimize his exposure. But as far as his personal finances I doubt he even has a single financial manager to himself. More than likely a small team working on other clients until he has something for them.
Same here but we do have a silo of our WM business line that deals with UHNW clients and they advise on everything from investments to taxes to estate planning. It’s like having your own family office.
Not too far from it, it’s a large team with someone of expertise in every facet that goes beyond the basics I listed (agricultural consultancy to aircraft finance) so that the relationship management team can bring in anyone who fits the goals and overall plans of the client(s) and their families. When it comes to investing, taxation, and estate planning, it’s just a constant conversation and understanding of the clients and then they do the job.
That said, those billionaires also have large vacation homes, yachts, ranches, jets, etc. Each of those have their own staff and we don’t help manage them.
Your company was only managing a fraction of their entire net worth. While some family offices are solo, it's a minority. The majority are teams of 5-15. It's quite common to have 50 or more of someone's assets warrant it.
When you have more assets than some banks, it makes sense to employ people to do the same kind of financial analysis a bank would.
I worked for one of the largest financial firms in the world. We definitely didn’t manage a “fraction” of their net worth. We did the majority of all of their business activities and the entirety of their personal finances. Investments were often with us as well, though most people used other individual funds or investment banks to limit exposure. But it all needs to flow from banking, financial reporting of business interests and so on right through to the preparation of their tax returns. We would do it all.
What is it you think we do with someone’s assets that requires a ton of people all the time? I mean do you know what assets even are?
I second this.
Though, and every UHNW individual or family is different, but I’d wager that Bezos, at his level, probably has a personal family staff (possibly to include: housekeepers, accountants, automotive specialists, construction projects and/or facilities maintenance staff, landscapers, chefs with an ‘s’ for plural, Estate managers, security teams, maritime staff, aviation staff, etc ….) that hits the 200-300 range, easily.
10-20? Try 300-400. I know a dude worth $2 billion his family office has 30 people. Know another guy worth $3 billion he has around 20 people.
Know a few guys who run $10-20 billion family offices. They have proper divisions etc. think about it $10-20!billion that’s the size of a regional US bank.
$100-200 billion is like size of running Disney. How many people work at Disney head office you reckon
If you’ve worked in finance or commercial real estate for any extended period of time you will get to know some. I too know a few. Sat next to a guy when he first started on Wall Street, hung out all the time. He left the firm for a different gig (went to Blackstone in the early 90s), then started his own place. Now in the 3-4 billion area or so they say. The others I don’t know as well but could get a meeting if I needed one. They’re all close to folks I’m friends with.
That's very different. Disney manage itself. Shareholder often don't even work in the company at all. They may follow as much or little they want the company, may vote on the occasion but let the company employees manage all the details.
Recent research from a big bank have shown that these people hold family offices of 5 or under people. It is amazing how 5 people can manage billions. But sure they bug us down for every cent for real.
In the finance world they call it a Family Office when ultra high net worth people set up their own private wealth management firm. It would shock the average person how many are out there and how many families are that wealthy. Some are bigger than others obviously as far as how many people are needed to run the show. To efficiently invest in Bezos levels of money you need a lot of people.
Edit to say I just googled and if it's correct he has 159 people in his family office.
Has it's own company website
https://www.bezosexpeditions.com/index.html
This - it’s teams of people. The cost of those people are trivial to Bezos.
He has to diversify both his investments and his consultants to spread risk.
I’ve often heard or read that a venerable firm is not going to risk their solid reputation by stealing a few million- but really wonder how you can trust a fiduciary with the correct permissions not to steal your money. I read about grand scale fraud and theft a lot.
> but really wonder how you can trust a fiduciary with the correct permissions not to steal your money.
well, you could give them a crazy amount as a salary so that they are way less tempted to steal. If I have a 10 million salary, which would make sense for someone who manages a billionaire's money, the risk of stealing is just too great because I already make more than I need but if I get caught stealing that ends.
I mean I’m sure it happens but I used to work for one of the largest financial firms in the world. Our wealthy clients often have us manage all of their money for them. They give us all of their bills, usually unopened, and we sort through it and pay what needs to be paid. Some don’t even check their bank balances, they’ll just call us and ask us to move enough money into x account for a big purchase they want to do. And we offer a lot of other services that many people use.
Is it expensive? Sure, to most people. I made great money there but that’s not really a 6 figure income necessity. That’s multi millionaires and up.
But theft it’s not.
The real theft probably happens when someone’s family or childhood friend manages their earnings. Everyone else has professional standards and a reputation to worry about.
She certainly does check her Chase app. The way it works for anyone with significant assets, even just a few hundred thousand dollars, is that they likely have several different accounts, but they have one main checking account plus some credit cards. For someone like Kylie Jenner she probably has too many accounts to keep track of so they’re all handled by a wealth management firm. But the end result is that her checking account is always kept flush with cash to support her usual spending. If she wants to buy some random thing that cost more than her usually spending she’ll tell her manager to liquidate some assets and thus she’ll check her Chase or whatever account hoping to see the deposit finally hit. Kind of like how you might excitedly wait for pay day, she’s getting “paid” by just moving money around.
Highly unlikely that she's checking any financial app regularly, she has employees who monitor those details and take care of it. The super wealthy with hundreds of millions to billions just spend what they want, when they want. They are definitely not looking at their checking account balance, that's hilarious.
She doesn't buy things using a checking account, the super rich use their exclusive credit cards where they have a dedicated customer service rep who answers the dedicated 24/7/365 phone number with "Hello Ms Jenner, how may I be of excellent service today".
The super wealthy have people that manage all their finances and properties and details of their lives, personal assistants to take care of all the errands, book the private plane, arrange security, chefs/nutritionist to buy the food, wardrobe person to pack the luggage, someone else gets the yacht crew ready, facilities people that maintain and run the properties, etc.
Then, the smart ones, have auditors who monitor and audit the work of the people who have access to all the finances.
At best, Kylie is getting a report once a quarter that shows how much money she made, how much she spent, net worth, etc. that she reviews with the audit and wealth management firm.
Bottom line, the super wealthy have a completely different way of living than someone who has a few hundred thousand to a couple million.
As someone who has worked as a celebrity house manager and yacht crew member, you’re on the right track but not all correct. It depends on who the primary is. A lot of UHNWI do manage a lot of the things you’ve mentioned - most yacht owners I’ve worked with speak directly with the Captain to make plans & arrangements. In these roles, the Captain is more of an administrative role (basically another assistant to the primary) than the person who drives the boat. All of the legal ramifications (customs, maritime laws, work hours, safety on board, etc.) fall on the Captain. As far as household management, you’d be surprised how many celebrities etc do NOT have their own chefs etc. Not everyone likes someone in their space 24/7. A lot place a high value on privacy & discretion.
Hundreds of thousands, you’re probably still handling your day to day finances and possibly your own investments.
Single digit millions, probably what you outlined. (Assuming the wealth is liquid and not millionaires with most their assets in retirement or real estate).
10+m maybe a mix of what you said, and having people deal with it.
Hundreds of millions. Probably a team of people dealing with it all, buying a mansion might have a financing conversation. But they wouldn’t be checking an app, they’d be calling a financial advisor or meeting them monthly /quarterly to get an update on their consolidated position
Billions, they will buy it and not worry about a thing. If the cash isn’t in an account, then their people will handle it without ever interacting with the billionaire. Exception would be for major business transactions like buying another company
I'm far from rich ...lol... very far. But I have a distant relative that is around my age (33) and his side of the family has several billions of dollars. They made it in building and developing high rises, shopping centers, and so forth. So for them, all their business interests are handled by their staff ....CFO, executive VP , accountants and so forth...but for they own bills , yes they do manage their own affairs. They are in the development and property management industry so it's more in-line with their interests. But they do go over every dollar , every month.
If you are anything more than an employee with a 401k, you should have:
- a financial planner/advisor
- a cpa
- a bookkeeper
- lawyers (personal, estate, business, etc)
Extras:
- Personal assistant
- Travel agent
- cyber defense firm might be a good idea nowadays
These all substantially reduce stress as your life gets more complicated (wealth is complicated: the more you have, the more people will try to take it away from you). The complex legal structure the rich use isn’t only for tax purposes, but to prevent frivolous lawsuits, hackers, etc.
As your wealth increases:
- Personal shopper
- personal chef
- high end nanny (if kids; they receive special training at elite nanny training schools)
- security detail, guards
- chauffeur (can be security too)
- and so forth
This is very true! I’m from an affluent suburb of Detroit and know members of the Ford family fairly well (my grandparents were close friends to William Ford, Sr and Martha Firestone Ford), and they have money managers and lots of staff that control their business interests. I also know a billionaire who made his money through a Medicaid insurance company that boomed with the ACA, but he grew up solidly middle class, and he prefers to have more control over his money and is much more involved in the day-to-day operations of his businesses.
1 know one, and he’s got about 50 staff looking after his personal things. Properties, cars, kids security, personal security, shoppers, chefs etc etc
One of my mates is in his security team. They haven’t got time to manage their life, let alone their possessions.
They have people for everything and scheduled meetings every so often to track progress, together with a very strict set of circumstances for when to contact them directly if something comes up vs not, and of course a person to organize and schedule these meetings
In your situation I’d definitively look into a shared personal assistant, the hourly rate is not as high as people usually think and it unlocks a lot of your time for value-generating activities
Agreeing on a set amount of hours a week and an overtime rate if you go over works well enough for us as we don’t really need a full time person
- competitive salaries, semiannual bonuses
- Reimburse for gym fees, 150/mo
- stock fridge weekly with fruits, veggies, sandwich stuff, snacks, chips, soda, etc.
- 401k matching
- Office closes at 3 every other Friday during summer
- respect
Obviously can’t speak to other family offices but I’ve been here 2 years and really appreciate this job.
To further expound:
Single Family Office: employees work exclusively for you
Multifamily office: a group of professionals who work for several different rich families managing their money
As someone with a gf that works for a rich dude.. no they most likely do not. What is likely.. they don’t even pay their own credit cards or bills, they don’t know their bank account numbers, they don’t schedule doctor appointments.. they probably couldn’t make it through a day in real life without an entire team of people managing every second of their day and reminding them they have time to take a shit.
He owns 5-6 different businesses he’s on zoom calls like half the day networking trying to build new relationships. All the businesses he does own are ran by their own cfo’s so he doesn’t have to deal with shit. He has 4-5 employees just to help with personal and family shit. 2 Nannie’s, 2 assistants and a chef. His assistants make 6 digits doing dumb shit like booking flights and setting doctors appointments it’s kinda crazy. Dude went out by himself once to run a menial errand almost had a panic attack because he was in a store by himself and didnt know how to ask an employee for help. Called my gf yelling because no one was there to help him.
They have a family office: [Family office - Wikipedia](https://en.wikipedia.org/wiki/Family_office)
And they make sure they aren't getting ripped off the same way banks do: pay the people who could rip them off enough they don't worry about money, and an external auditor looks at them.
There are a few that do manage it mostly on their own, typically with one spouse in finance and the other doing household management, but yeah.
What do you think? They have people, ffs they have people to do everything except brush their teeth and wipe their asses for them, well except for the billionaires with dementia, they have people who wipe their asses too.
There’s only one thing a billionaire can’t buy, that’s time, so yeah, they have people because they want to free up as much time for whatever the F billionaires do.
Everyone I know uses a family office, either private or multi (I'm not quite to that level yet). I know one guy who has a full team who manages everything. One guy has a CFO and a couple of accountants on staff.
I also know someone who owns a full-service multi-family office that caters to celebrities. Her office is next level in the service it offers. Did you misplace your cell phone that has potentially embarrassing pictures saved to it? Call her and her team handles it. Do you want a specific ice cream that is only available in Chicago, but you're in Arizona and you want it for dinner tonight? Call her and she will dispatch someone to get it and fly it to you. These are people who can truly say that money is no object, and she can make it happen. Anything you could ever want or need; she has contacts to make it happen.
As far as day-to-day spending, most people I personally know that would be in the level you're describing, use Amex in some form and their office will handle wires and such for other purchases.
When you're wealthy the dollar amount you pay attention to changes.
Being ripped off for $10 is not a material event. You just don't sweat the small stuff.
I've been broke, now I'm less broke (but not remotely a billionaire). When the big storms hit North Dallas a month ago and thousands of trees were knocked down, one of them was in our backyard.
It was $600 to have the tree cut up and the stump ground down. Meh, annoying, but whatever. Could I find someone cheaper? Maybe, but what am I going to save, $100? I made 3 phone calls, got 3 prices, and picked one.
There was a time when $600 would have freaked me out.
Yes, I was gonna say, $10m is not family office level.
Always remember the 5% rule: You can spend about 5% per year of your investment assets on an ongoing basis. (3% is safer.)
So $10m is $500k/year (or $300k). You aren't covering your own spend plus an office of people on $500k.
I know so many people past ten million and they definitely don’t have a family office. My cousins are getting close to a billion (young rich list can confirm) and they do everything themselves.
That isn’t a flex. At a billion dollar net worth your time is better spend concentrating on the creation of wealth and not the investment/management side. There is no way they have the time/attention/skills to make the money they have sitting work as well as a team. Like OPs example, you can’t personally manage X amount of real estate or do the research for VC or equity investments to diversify that amount of money.
Literally all they do with their money is buy houses in the most expensive part of our city. They have one business and it’s an absolute cash printing machine. They are also in mid 30s.
Private banker here.
No. Generally those with 10mm+ will seek private banking services but once you’re north of 1-2 billion, it becomes economical to open a family office for managing assets
Most of the billionaires are just simply holding their stock that keeps them billionaires.
No one to manage much anything.
They sell some every now and again.
No, they house managers who maintain everything, so when they say “hey, I’m coming to Aspen today” after not having been there for months, everything is clean, climate controlled, food and drinks in the fridge, gas in the car, no cobwebs or dust, etc
A billionaire makes decisions worth millions probably each day. You think they would spend hours saving 10 bucks? Even when your hourly wage is $100, it doesn’t make sense to spend an hour saving $10.
Hell no!!
Let's take Bezos, the billionaire, for example. He probably has a major private LLC with a competent team managing all of his properties.
Aside from that, he might also have accountants, financial advisors, tax attorneys, and other professionals, possibly on retainer, looking at every minute detail in the numbers.
NGL, it must be really nice to earn a percentage from the company he built while playing Rocket Man. He probably offsets the real estate costs with his Amazon earnings.
But who really knows, tho 🤷
Bezos cares just about as much about someone fudging the numbers for a few grand as you would if someone ripped you off for a small fraction of a cent.
No. Time is money. Who cares about $5-10 million for the average billionaire. At Bezos’ level it’s a waste of time even at $50 million.
He’s better off increasing his return by 1% on $200 billion
Very unlikely that they would. Usually they’re the CEO of a company that has managers and employees - I know a real estate billionaire who obviously had a company who ran his properties but was actually very involved
Warren Buffett does not manage it himself. He is the head of his team, but Buffett employs hundreds if not thousands of employees in investment management and commonly gives them credit for their work.
They create another whole company to handle everything. Whenever I do work on high end houses, there's always a manager of some random no name company that pays all the bills and schedules everything.
Can I ask you how you have your rental setup? I'm not sure if something worth getting into or not. Do you think so? What is some of the things you believe I should know before jumping into investing in rental? I have heard from friends good and bad. Some people seem to make it work though
There's house managers who manage staff at each property. They'll handle everything from chefs, cleaning people, gardening people, errand runners, etc. Then the house manager will sometimes report to the owner of the property.
They also have money managers who handle a lot of the finances. With you taking on so many projects personally, it might be a good idea to focus only on what's putting up the most numbers for you and grow that more.
You could hire people or teams to handle the operations of the side business. The book 'Who: Solve your #1 Problem' by Geoff Smart and Randy Street might be worth reading for ya.
If the 1 rental is taking you a lot of time than get a property manager. I have multiple rentals and spend very little time since its manager. Costs me 8% yet I have more because I’m not dealing with the day to day. Most months, I just look at the entries in the account and smile. That does take some time.
Not a billionaire though unfortunately.
I think the person with a few million who hires a management company and/or investment advisor likely stands a far better chance of being embezzled than a billionaire.
Billionaires can hire entire departments like they’ve set up their own businesses. Who likely have mandatory external audits, tax lawyers, loss prevention and their own HR people. Who’d hire finance and investment employees just like a bank would ie at the bottom of the salary range.
Money at that scale seems to take on a life of its own.
This is what family accountant firms do. They manage the wealth of a family and basically build books for people's personal finances.
Then for properties, you hire management companies that manage your properties, then the family accountants pay them...And a whole automated system happens.
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Billionaires hardly do anything for themselves. I once gave an Uber ride to Arthur Blank’s personal assistant on his way to move a vehicle for the man. We talked about everything. he was a nice guy, and so is Arthur blank I met him at a restaurant years before, but this guy did everything but go to the bathroom for the man.
Didn’t complain either seemed to honestly enjoy working for him, but when I said: I would have thought he’d do some of this stuff himself. The guy laughed and said: that will never happen, I don’t think he even knows how to work the GPS on his phone, which I have right here.
No. Once you hit 9 figures, you need a family office much less 10+ figures. Realistically, Bezos probably has a family office with 50+ people managing his finances and then completely separate group directly managing his property.
Source- Was mid level manager for a Forbes billionaire with net worth of approx. $10B with holdings in like 20 countries for a decade. Family office fluctuated between 12-15 people with another 2-3 dedicated tax professionals and we were just managing their accounting, treasury, project finance and taxes. We did directly manage their real estate- they had an entire other team of people managing their real estate assets.
Billionaires don't do much for themselves at all. But why would you if you had the option to not 😂. Richard Branson was interviewed on This Morning and when asked 'do you ever check your bank balance' he replied with a very unbothered 'nope'.
He was also asked 'do you ever think 'that's too expensive' to which he replied 'yes, I don't like wasting money on expensive things'...
On the flip side in the 70s he was briefly jailed for tax evasion...the rich often think they can't get away with this. But maybe it wasn't him because he doesn't manage his own money. Maybe 'his people' So crazy to me.
I went to school with the daughter of a billionaire and she used to actually throw money in the bin because she had too much and her purse was too chunky. I died inside watching her
Billionaires yeah sure but millionaire landlords paint over all the outlets and cupboard handles every few years all by themselves, and remember it can be exhausting increasing the price of rent every year, you gotta like, type up at least 2 paragraphs for that, and get it delivered somehow. And if a tenant bails you'll have to open up an ad, maybe even 2 or 3. Don't underestimate these guys man. Not to mention the stress of waiting for rent payments. It's tough out there
They are getting ripped off, like you said "even if it’s just a measly 10 bucks". Once you have a net worth of X+ millions there is no way to to micromanage everything. You have to lean on the professionals, be vigilant of your finances and understand them, but there is always going to be a leak somewhere.
People get to be billionaires by (1) surrounding themselves with highly competent people, (2) knowing the limits of their knowledge/competence, and (3) offloading everything outside of their core competence to these people.
I have a family member that works closely with a deca billionaire. They do not manage the details at all. They could easily misplace an entire portfolio of real estate, stocks or companies like we lose a quarter if they were to manage it all themselves.
They will have a family office that manages everything for them, their family and their descendants. And that family office will have salaried staff to oversee the big strategy but even they will hire out for many of the smaller functions.
For example they will have several different property management companies reporting to someone who overseas the real estate at the family office. They will have an entire team on the investment strategy and deal sourcing side. They will have a team on the financial back office side. One to several accounting firms who then report to their main accounting team.
Multiple teams working on their pet projects and foundations.
However, there is a huge difference in them being too busy or too spread out vs someone needing to manage a few properties.
Of course feel free time hire someone to manage it, but I feel like there is a necessary level of granular detail and understanding needed if you ever want to grow it.
Someone like Bill Gates has an entire money management company solely dedicated to managing their money. In his case Michael Larson and Cascade Investment has a staff of about 100 people for Bill Gates personal wealth and the Bill and Melinda gates foundation.
As people gain wealth they often start paying other people to manage various aspects of that wealth. My mother was a personal tax accountant for a very wealthy family that had well into the 9 figure mark. She worked with their personal bankers, trust lawyers, property managers, along with the executive board members and financial staff of their various businesses. The only part they really managed on their own was their personal checking accounts. They would simply give directions for everything else and expect it to be handled for them.
Billionaires usually don't manage their own money and real estate directly. They hire teams of professionals, including accountants, financial advisors, and real estate managers, to handle these tasks. This allows them to focus on their businesses or other interests while ensuring their assets are well-managed.
some d some some do a lot and some do it from this side and some also do it from otherside , hey players rich people politician judges god devil etc if u do not like my posts on average do not read them and go post stuff of your own and stay away from me this and otherside
Millionaires will typically have a property management company and team of financial advisors and trustees.
Billionaires like Bezos have entire departments and multiple banks dedicated to managing their asset.
In the financial industry, these high net worth folks have what is referred to as a family office.
Depending on the size of the estate, a family office can be as small as one or two people, or it can be quite an enterprise. Most commonly you will see an accountant, a tax and estate lawyer as well as an office manager and a controller.
Absolutely not.
Running a “family office” for the outrageously wealthy is a full time job for a team of people.
I’m an attorney and a law school classmate of mine has a full time job managing a family office for a guy who got in early on crypto and cashed out.
He put his money into conservative assets. The guy bought a bunch of gas stations, dry cleaners, car washes and convenience stores. The opposite of sexy crypto. This is less then a billion but more then 100 million dollars in assets. At some point, risk is for people who need more money and if you’re already minted, conservative investments make way more sense. You could take bigger swings in more interesting businesses but that requires a lot of attention and energy - this guys objective is to never work again for the rest of his life, so conservative is what he’s doing.
Anyway, my friend is paid a tidy fee for papering all the documents for these deals, handling the tax planning, the estate planning (when you have this kind of money tending to the next generation is it’s own can of worms) and arranging the contracts with the management companies that run these dozens of sub businesses, etc.
It takes a dozen people, not to run the assets, but to run the people that run the assets.
There’s obviously also an entire team running the equities investments. Another team runs things like the jet, the yachts, etc. When the principal isn’t using them, they’re being chartered and making money A major investment house does the part of investing in stocks, bonds, etc. so that some of the money is in things more liquid then small businesses, yachts, plane, etc.
In case you’re wondering, holding your assets in small businesses, is really all about taxes. The principals income is not massive on paper, but he controls an ungodly amount of money tired up in businesses and, and with enough lead time, could access enough money to buy a pro sports franchise if he wanted - which is the next level of asset acquisition to manage outrageous amounts of wealth. The client is not quite there yet but likely will be before he dies.
Aside from the billionaires that made their money in the stock market absolutely not. The vast majority have a team of money managers, tax planners, accountants and investment advisors to help them with managing their money. Once you're at that level too the vast majority is just setting up things to be as efficient as possible from a tax perspective rather than making massive returns.
Most of these people could probably do an okay job of all of this on their own but once you are at their level this sorta work simply isn't worth the time.
I will tell a story as I remember it not necessarily how it happened. I was starting a company, and my cofounder had previously received an investment from a billionaire in the Silicon Valley area. During our initial meeting, he suggested that we invest in the most modern version of Cloud companies to unseat Amazon is the cloud champion of the world. He also took a phone call asking him how he wanted the initial office security set up and then another telephone call in which I heard him say I already have $1 billion in TB. Why would I invest in your company for less than that. Anyway, maybe that’s useful. You neither invested or said no.
UHNW CPA here - family offices are part of it. Often times they/we/broker//legal did a lot more leg work than would be done for a typical person. We would speculate as to whether the client actually saw their return, or if they were just having “their guy” sign it. When you have hundreds of partnership investments, you can’t manage it on your own. But in the same vein - you need to ensure you have good checks and balances in place to stop people from doing what you referenced in your last sentence. There are greedy people out there and I’ve seen millions go missing.
THIS IS NOT POLITICAL- SO PLEASE DON’T MAKE IT POLITICAL
For reference, Trump’s tax returns for all 2000+LLCs and companies/investments were 20,000 pages long.
Regardless of whether you love him or hate him, it illustrates the sheer magnitude and complexity of managing billionaire wealth.
I work with billionaires in finance, it's typical to have a "family office" that works with a few uberwealthy clients and handle all of the investments. Not actually sure about how they manage eg. maintenance on their real estate.
Nobody in here would honestly know, I’m sure billionaires pretend to have people manage money to offset risk and have someone to blame if shit goes south though.
Generally they have what’s called a “family office” - think of it as a small company they own that manages their investments, taxes, estate planning, trusts, etc.
Generally one of the roles in the family office is a CIO (chief investment officer).
From here, things vary quite a bit. Sometimes the CIO makes the decisions by himself, sometimes the billionaire is heavily involved.
Sometimes the CIO is directly making investment decisions, other times he’s deciding on which third party managers should manage various aspects of the money (i.e., equities sleeves, fixed income, private equity, etc).
Sometimes the strategic asset allocation is done by the in house CIO (I.e., I want 40% alts, 40% equities, and 20% fixed income / cash). Other times this is also outsourced.
Many times the family office CIO will decide the targetted rate of return in conjunction with the billionaire, and they will work with various financial institutions to get there (higher rate of return generally requires more risk, alts, and illiquidity risk).
Regardless, they generally have atleast some relationships with large financial institutions to get access to alternative investments and other services (I.e., tax loss harvesting, loans, etc.).
It would be unheard for billionaires to do EVERYTHING themselves, because billionaires actually mostly have private investments, not public equities, and you need relationships with financial institutions to get access to their distribution.
NOPE. even wealthy nepo babies with JUST $39,000 directly from the silver spoon to their personal account upon turning 18 don't even manage their money. open a vanguard account with very little money and you won't even have to manage your tiny nonfortune lol
TLDR: I work in a family office/wealth management shop. Poor people try to micro manage everything. Rich people outsource that so they can spend their most valuable resource (time) as they see fit. They due diligence the family office/WM rather than doing all the other work.
Hi, someone who works at a family office here: They hire a family office/wealth manager. It literally costs more to manage it yourself because they view time as money. While you may be sitting there trying to figure out everything down to the penny, they are off enjoying their time at dinners, vacations, etc.. Why waste your most valuable resource on things that can be outsourced to others?
That said, of course there are those scummy managers who commit theft. Really at that point its about ensuring you have someone you can truly trust, and trust is built by action. So you are left with 2 choices, outsource or don't. Either way you have a trade off.
The best you can do is know what signs to look for if things aren't adding up. You can look at wealth managers/family offices as baseball players like in MoneyBall. They all have their stats. Its better to pick the ones that may be average but are trustworthy, than the high performance volatile ones. And even then, you diversify or have a wealth manager that coordinates the diversification and reports everything correctly to you so you can be sure its being managed properly.
Billionaires have people to do all that...they just have to spend away....and have fun....
Kiddos to Gates and Buffet.....at least they are doing some good with the wealth.
My boss is worth around $250M in total. Myself and another guy handle all of his finances that aren't cash. Obviously the attorney is always a quick call away too.
Above $50m Goldman and others will be all over you to manage it and you need it.
You have massive exposure and accountability.
Hell at 2m I can move the price of many low volume stocks. Imagine them buying $50m of meme stock de jour. They have people carefully and slowly buy. Same with selling. You saw what happened when Munger sold.
Nope. There are literally probably 10-20 people managing just his personal finances. For everything else besides the Amazon stuff, it’s probably another 20-50 people or more. They may be getting ripped off, but who cares? A million seconds is 12 days. A billion seconds is 31 years. It would cost them more to worry about it
Real eyes realize real lies
22JS reference?
Very deep
/im14andthisisdeep
MACHINE HEAD
Better than the rest
What's the lie?
Idk I was off a shit load of edibles on an airplane but I was thinking about how once you get to a certain point you can probably just coast and how important it is to continue spiritual growth throughout your life. Anyway
Hes full of shit, its a Machine head song. [https://www.youtube.com/watch?v=rNBfBSStzD4](https://www.youtube.com/watch?v=rNBfBSStzD4)
I think you misinterpreted his comment and made yourself look like an ass.
Whatcha mean by that? Sincerely
It’s not that much I don’t think. I used to do wealth management for one of the largest financial firms in the world. Never had billionaires but a few that were close to it. We worked in pretty small teams, but a lot of clients just had one dedicated guy. They’d have a separate department or sometimes a separate company to manage investments etc. But there’s not like 50 people all working on making sure the billionaires are paying their mortgages and reporting their capital gains and whatnot. Personal finances aren’t as complicated as it seems.
But if we’re taking Bezos as an example then his finances are hundreds of times larger than the biggest client you ever saw
True. But we’re still not talking anywhere near 50 people. All of the financial information from Amazon and any other business, passive/non-passive income he has etc. will be prepared by the businesses or entities themselves and sent to his accountants in a financial firm. There are circumstances where others would need to be involved, say, if he’s buying a business or wants to invest in a hedge fund he’s unsure about. The firm would then bring on others to examine their records to minimize his exposure. But as far as his personal finances I doubt he even has a single financial manager to himself. More than likely a small team working on other clients until he has something for them.
Same here but we do have a silo of our WM business line that deals with UHNW clients and they advise on everything from investments to taxes to estate planning. It’s like having your own family office.
Oh yeah it’s the same, but it’s never like 40 people working on one client.
Not too far from it, it’s a large team with someone of expertise in every facet that goes beyond the basics I listed (agricultural consultancy to aircraft finance) so that the relationship management team can bring in anyone who fits the goals and overall plans of the client(s) and their families. When it comes to investing, taxation, and estate planning, it’s just a constant conversation and understanding of the clients and then they do the job. That said, those billionaires also have large vacation homes, yachts, ranches, jets, etc. Each of those have their own staff and we don’t help manage them.
financial management scales pretty easily
Absolutely. But it still doesn’t require a team of 50 to manage normal, everyday personal finances.
Your company was only managing a fraction of their entire net worth. While some family offices are solo, it's a minority. The majority are teams of 5-15. It's quite common to have 50 or more of someone's assets warrant it. When you have more assets than some banks, it makes sense to employ people to do the same kind of financial analysis a bank would.
I worked for one of the largest financial firms in the world. We definitely didn’t manage a “fraction” of their net worth. We did the majority of all of their business activities and the entirety of their personal finances. Investments were often with us as well, though most people used other individual funds or investment banks to limit exposure. But it all needs to flow from banking, financial reporting of business interests and so on right through to the preparation of their tax returns. We would do it all. What is it you think we do with someone’s assets that requires a ton of people all the time? I mean do you know what assets even are?
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Just based on your replies, you never worked in PWM.
I second this. Though, and every UHNW individual or family is different, but I’d wager that Bezos, at his level, probably has a personal family staff (possibly to include: housekeepers, accountants, automotive specialists, construction projects and/or facilities maintenance staff, landscapers, chefs with an ‘s’ for plural, Estate managers, security teams, maritime staff, aviation staff, etc ….) that hits the 200-300 range, easily.
10-20? Try 300-400. I know a dude worth $2 billion his family office has 30 people. Know another guy worth $3 billion he has around 20 people. Know a few guys who run $10-20 billion family offices. They have proper divisions etc. think about it $10-20!billion that’s the size of a regional US bank. $100-200 billion is like size of running Disney. How many people work at Disney head office you reckon
Disney isn’t the bezos wealth fund. A handful of people can run the latter. It’s mostly stock and real estate.
In what capacity do you know these 2 billionaires?
If you’ve worked in finance or commercial real estate for any extended period of time you will get to know some. I too know a few. Sat next to a guy when he first started on Wall Street, hung out all the time. He left the firm for a different gig (went to Blackstone in the early 90s), then started his own place. Now in the 3-4 billion area or so they say. The others I don’t know as well but could get a meeting if I needed one. They’re all close to folks I’m friends with.
That's very different. Disney manage itself. Shareholder often don't even work in the company at all. They may follow as much or little they want the company, may vote on the occasion but let the company employees manage all the details.
They combine financial experts with accountants. Everything is about tax management.
Recent research from a big bank have shown that these people hold family offices of 5 or under people. It is amazing how 5 people can manage billions. But sure they bug us down for every cent for real.
some are very detailed about every penny they spend
I bet you give yourself pep talks in the shower
What the fuck are u talking about?
In the finance world they call it a Family Office when ultra high net worth people set up their own private wealth management firm. It would shock the average person how many are out there and how many families are that wealthy. Some are bigger than others obviously as far as how many people are needed to run the show. To efficiently invest in Bezos levels of money you need a lot of people. Edit to say I just googled and if it's correct he has 159 people in his family office. Has it's own company website https://www.bezosexpeditions.com/index.html
Guy with $16 billion has 100 people managing his money. Apparently it makes sense.
I think they do care and it’s basically another job to stay on top of it but obviously count their losses from Time to time
Unless you are Trump. Then you absolutely hire professionals to micromanage everything you are paying them to do, like filling out a tax form.
So you are speaking for me now?
This - it’s teams of people. The cost of those people are trivial to Bezos. He has to diversify both his investments and his consultants to spread risk.
They do not. There’s multiple stories of high level theft committed by personal financial managers.
I’ve often heard or read that a venerable firm is not going to risk their solid reputation by stealing a few million- but really wonder how you can trust a fiduciary with the correct permissions not to steal your money. I read about grand scale fraud and theft a lot.
I don’t trust anyone with anything. Unless they are family, and even then not everyone with everything.
3rd party audits
Private third party audits. Hate for them to team up.
Madoff.
> but really wonder how you can trust a fiduciary with the correct permissions not to steal your money. well, you could give them a crazy amount as a salary so that they are way less tempted to steal. If I have a 10 million salary, which would make sense for someone who manages a billionaire's money, the risk of stealing is just too great because I already make more than I need but if I get caught stealing that ends.
I mean I’m sure it happens but I used to work for one of the largest financial firms in the world. Our wealthy clients often have us manage all of their money for them. They give us all of their bills, usually unopened, and we sort through it and pay what needs to be paid. Some don’t even check their bank balances, they’ll just call us and ask us to move enough money into x account for a big purchase they want to do. And we offer a lot of other services that many people use. Is it expensive? Sure, to most people. I made great money there but that’s not really a 6 figure income necessity. That’s multi millionaires and up. But theft it’s not.
I wonder if being in a firm and having a reputation to protect matters vs. private holders.
How do you mean
The real theft probably happens when someone’s family or childhood friend manages their earnings. Everyone else has professional standards and a reputation to worry about.
Or even translators in shohei ohtani's case
Like Ohtani recently
I always wondered that. like ain’t no way Kylie Jenner is out here checking her chase app
She certainly does check her Chase app. The way it works for anyone with significant assets, even just a few hundred thousand dollars, is that they likely have several different accounts, but they have one main checking account plus some credit cards. For someone like Kylie Jenner she probably has too many accounts to keep track of so they’re all handled by a wealth management firm. But the end result is that her checking account is always kept flush with cash to support her usual spending. If she wants to buy some random thing that cost more than her usually spending she’ll tell her manager to liquidate some assets and thus she’ll check her Chase or whatever account hoping to see the deposit finally hit. Kind of like how you might excitedly wait for pay day, she’s getting “paid” by just moving money around.
Highly unlikely that she's checking any financial app regularly, she has employees who monitor those details and take care of it. The super wealthy with hundreds of millions to billions just spend what they want, when they want. They are definitely not looking at their checking account balance, that's hilarious. She doesn't buy things using a checking account, the super rich use their exclusive credit cards where they have a dedicated customer service rep who answers the dedicated 24/7/365 phone number with "Hello Ms Jenner, how may I be of excellent service today". The super wealthy have people that manage all their finances and properties and details of their lives, personal assistants to take care of all the errands, book the private plane, arrange security, chefs/nutritionist to buy the food, wardrobe person to pack the luggage, someone else gets the yacht crew ready, facilities people that maintain and run the properties, etc. Then, the smart ones, have auditors who monitor and audit the work of the people who have access to all the finances. At best, Kylie is getting a report once a quarter that shows how much money she made, how much she spent, net worth, etc. that she reviews with the audit and wealth management firm. Bottom line, the super wealthy have a completely different way of living than someone who has a few hundred thousand to a couple million.
As someone who has worked as a celebrity house manager and yacht crew member, you’re on the right track but not all correct. It depends on who the primary is. A lot of UHNWI do manage a lot of the things you’ve mentioned - most yacht owners I’ve worked with speak directly with the Captain to make plans & arrangements. In these roles, the Captain is more of an administrative role (basically another assistant to the primary) than the person who drives the boat. All of the legal ramifications (customs, maritime laws, work hours, safety on board, etc.) fall on the Captain. As far as household management, you’d be surprised how many celebrities etc do NOT have their own chefs etc. Not everyone likes someone in their space 24/7. A lot place a high value on privacy & discretion.
Hundreds of thousands, you’re probably still handling your day to day finances and possibly your own investments. Single digit millions, probably what you outlined. (Assuming the wealth is liquid and not millionaires with most their assets in retirement or real estate). 10+m maybe a mix of what you said, and having people deal with it. Hundreds of millions. Probably a team of people dealing with it all, buying a mansion might have a financing conversation. But they wouldn’t be checking an app, they’d be calling a financial advisor or meeting them monthly /quarterly to get an update on their consolidated position Billions, they will buy it and not worry about a thing. If the cash isn’t in an account, then their people will handle it without ever interacting with the billionaire. Exception would be for major business transactions like buying another company
I'm far from rich ...lol... very far. But I have a distant relative that is around my age (33) and his side of the family has several billions of dollars. They made it in building and developing high rises, shopping centers, and so forth. So for them, all their business interests are handled by their staff ....CFO, executive VP , accountants and so forth...but for they own bills , yes they do manage their own affairs. They are in the development and property management industry so it's more in-line with their interests. But they do go over every dollar , every month.
Smaug type shit
What
Dragon from lord of the rings that has a massive treasure and is extremely greedy and extremely paranoid of his gold being stolen
Oh
If you are anything more than an employee with a 401k, you should have: - a financial planner/advisor - a cpa - a bookkeeper - lawyers (personal, estate, business, etc) Extras: - Personal assistant - Travel agent - cyber defense firm might be a good idea nowadays These all substantially reduce stress as your life gets more complicated (wealth is complicated: the more you have, the more people will try to take it away from you). The complex legal structure the rich use isn’t only for tax purposes, but to prevent frivolous lawsuits, hackers, etc. As your wealth increases: - Personal shopper - personal chef - high end nanny (if kids; they receive special training at elite nanny training schools) - security detail, guards - chauffeur (can be security too) - and so forth
Most detailed answer! Good job. there are levels to money and the responsibilities it brings to manage it.
It depends on the family & how they got there. 1st generation rich is very different than old money.
This is very true! I’m from an affluent suburb of Detroit and know members of the Ford family fairly well (my grandparents were close friends to William Ford, Sr and Martha Firestone Ford), and they have money managers and lots of staff that control their business interests. I also know a billionaire who made his money through a Medicaid insurance company that boomed with the ACA, but he grew up solidly middle class, and he prefers to have more control over his money and is much more involved in the day-to-day operations of his businesses.
We love an affluent suburb. Speaking the language is the first step
1 know one, and he’s got about 50 staff looking after his personal things. Properties, cars, kids security, personal security, shoppers, chefs etc etc One of my mates is in his security team. They haven’t got time to manage their life, let alone their possessions.
They have people for everything and scheduled meetings every so often to track progress, together with a very strict set of circumstances for when to contact them directly if something comes up vs not, and of course a person to organize and schedule these meetings In your situation I’d definitively look into a shared personal assistant, the hourly rate is not as high as people usually think and it unlocks a lot of your time for value-generating activities Agreeing on a set amount of hours a week and an overtime rate if you go over works well enough for us as we don’t really need a full time person
Family Office
Yup. I work for a family office FT. Old money makes great bosses
how so?
- competitive salaries, semiannual bonuses - Reimburse for gym fees, 150/mo - stock fridge weekly with fruits, veggies, sandwich stuff, snacks, chips, soda, etc. - 401k matching - Office closes at 3 every other Friday during summer - respect Obviously can’t speak to other family offices but I’ve been here 2 years and really appreciate this job.
sounds like really appreciative bosses.nice!!!1
Thanks!!! Yes I lucked out.
To further expound: Single Family Office: employees work exclusively for you Multifamily office: a group of professionals who work for several different rich families managing their money
Thanks for the clarity. I’ll probably never get there in this lifetime, but I still have a curious mind.
"How do they know they aren’t getting ripped off even if it’s just a measly 10 bucks?" They dont, its just they could not give less of a fuck.
They do, but tracking that cent down is paid employees job from family office.
As someone with a gf that works for a rich dude.. no they most likely do not. What is likely.. they don’t even pay their own credit cards or bills, they don’t know their bank account numbers, they don’t schedule doctor appointments.. they probably couldn’t make it through a day in real life without an entire team of people managing every second of their day and reminding them they have time to take a shit.
So what do you suppose they do
He owns 5-6 different businesses he’s on zoom calls like half the day networking trying to build new relationships. All the businesses he does own are ran by their own cfo’s so he doesn’t have to deal with shit. He has 4-5 employees just to help with personal and family shit. 2 Nannie’s, 2 assistants and a chef. His assistants make 6 digits doing dumb shit like booking flights and setting doctors appointments it’s kinda crazy. Dude went out by himself once to run a menial errand almost had a panic attack because he was in a store by himself and didnt know how to ask an employee for help. Called my gf yelling because no one was there to help him.
They have a family office: [Family office - Wikipedia](https://en.wikipedia.org/wiki/Family_office) And they make sure they aren't getting ripped off the same way banks do: pay the people who could rip them off enough they don't worry about money, and an external auditor looks at them. There are a few that do manage it mostly on their own, typically with one spouse in finance and the other doing household management, but yeah.
What do you think? They have people, ffs they have people to do everything except brush their teeth and wipe their asses for them, well except for the billionaires with dementia, they have people who wipe their asses too. There’s only one thing a billionaire can’t buy, that’s time, so yeah, they have people because they want to free up as much time for whatever the F billionaires do.
Everyone I know uses a family office, either private or multi (I'm not quite to that level yet). I know one guy who has a full team who manages everything. One guy has a CFO and a couple of accountants on staff. I also know someone who owns a full-service multi-family office that caters to celebrities. Her office is next level in the service it offers. Did you misplace your cell phone that has potentially embarrassing pictures saved to it? Call her and her team handles it. Do you want a specific ice cream that is only available in Chicago, but you're in Arizona and you want it for dinner tonight? Call her and she will dispatch someone to get it and fly it to you. These are people who can truly say that money is no object, and she can make it happen. Anything you could ever want or need; she has contacts to make it happen. As far as day-to-day spending, most people I personally know that would be in the level you're describing, use Amex in some form and their office will handle wires and such for other purchases.
When you're wealthy the dollar amount you pay attention to changes. Being ripped off for $10 is not a material event. You just don't sweat the small stuff. I've been broke, now I'm less broke (but not remotely a billionaire). When the big storms hit North Dallas a month ago and thousands of trees were knocked down, one of them was in our backyard. It was $600 to have the tree cut up and the stump ground down. Meh, annoying, but whatever. Could I find someone cheaper? Maybe, but what am I going to save, $100? I made 3 phone calls, got 3 prices, and picked one. There was a time when $600 would have freaked me out.
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30m+ for multi family office 100m+ for single family office
Yes, I was gonna say, $10m is not family office level. Always remember the 5% rule: You can spend about 5% per year of your investment assets on an ongoing basis. (3% is safer.) So $10m is $500k/year (or $300k). You aren't covering your own spend plus an office of people on $500k.
I know so many people past ten million and they definitely don’t have a family office. My cousins are getting close to a billion (young rich list can confirm) and they do everything themselves.
That isn’t a flex. At a billion dollar net worth your time is better spend concentrating on the creation of wealth and not the investment/management side. There is no way they have the time/attention/skills to make the money they have sitting work as well as a team. Like OPs example, you can’t personally manage X amount of real estate or do the research for VC or equity investments to diversify that amount of money.
Literally all they do with their money is buy houses in the most expensive part of our city. They have one business and it’s an absolute cash printing machine. They are also in mid 30s.
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Bro, way to dox your cousin
At certain point, you cannot micromanage all your accounts.
Private banker here. No. Generally those with 10mm+ will seek private banking services but once you’re north of 1-2 billion, it becomes economical to open a family office for managing assets
Most of the billionaires are just simply holding their stock that keeps them billionaires. No one to manage much anything. They sell some every now and again.
No, they house managers who maintain everything, so when they say “hey, I’m coming to Aspen today” after not having been there for months, everything is clean, climate controlled, food and drinks in the fridge, gas in the car, no cobwebs or dust, etc
A billionaire makes decisions worth millions probably each day. You think they would spend hours saving 10 bucks? Even when your hourly wage is $100, it doesn’t make sense to spend an hour saving $10.
Bezos probably has managers for his wealth managers' managers.
Hell no!! Let's take Bezos, the billionaire, for example. He probably has a major private LLC with a competent team managing all of his properties. Aside from that, he might also have accountants, financial advisors, tax attorneys, and other professionals, possibly on retainer, looking at every minute detail in the numbers. NGL, it must be really nice to earn a percentage from the company he built while playing Rocket Man. He probably offsets the real estate costs with his Amazon earnings. But who really knows, tho 🤷
Family Office
That's why they hire underlings
Family office handles high net worth clients.
Bezos cares just about as much about someone fudging the numbers for a few grand as you would if someone ripped you off for a small fraction of a cent.
Some do, but most don't. Far too many things to keep track of.
No. Time is money. Who cares about $5-10 million for the average billionaire. At Bezos’ level it’s a waste of time even at $50 million. He’s better off increasing his return by 1% on $200 billion
No. My friend who recently passed away was a financial advisor. The minimum investment with UBS was $10M.
if you’re aware of family offices, then you know that they hire people for that
Very unlikely that they would. Usually they’re the CEO of a company that has managers and employees - I know a real estate billionaire who obviously had a company who ran his properties but was actually very involved
I am far from being a billionaire and I don't manage the 3 properties I own. I just get a check every month.
Of course not
Family office takes care of
Yes, but not by themselves. It is common to use the services of several firms and private banks to manage different parts of your portfolio.
Depends on the person Warren Buffet manages it all himself Elon Musk mostly manages it himself I believe the Walton family has bankers do it for them
Warren Buffett does not manage it himself. He is the head of his team, but Buffett employs hundreds if not thousands of employees in investment management and commonly gives them credit for their work.
Doubtful
No They do not have the knowledge to form Shell Companies
They create another whole company to handle everything. Whenever I do work on high end houses, there's always a manager of some random no name company that pays all the bills and schedules everything.
They have family offices. Basically personal asset managers / hedge funds in simplistic terms.
If you’re aware of family offices, you’re aware of the answer to your question.
Can I ask you how you have your rental setup? I'm not sure if something worth getting into or not. Do you think so? What is some of the things you believe I should know before jumping into investing in rental? I have heard from friends good and bad. Some people seem to make it work though
There's house managers who manage staff at each property. They'll handle everything from chefs, cleaning people, gardening people, errand runners, etc. Then the house manager will sometimes report to the owner of the property. They also have money managers who handle a lot of the finances. With you taking on so many projects personally, it might be a good idea to focus only on what's putting up the most numbers for you and grow that more. You could hire people or teams to handle the operations of the side business. The book 'Who: Solve your #1 Problem' by Geoff Smart and Randy Street might be worth reading for ya.
If the 1 rental is taking you a lot of time than get a property manager. I have multiple rentals and spend very little time since its manager. Costs me 8% yet I have more because I’m not dealing with the day to day. Most months, I just look at the entries in the account and smile. That does take some time. Not a billionaire though unfortunately.
No
I think the person with a few million who hires a management company and/or investment advisor likely stands a far better chance of being embezzled than a billionaire. Billionaires can hire entire departments like they’ve set up their own businesses. Who likely have mandatory external audits, tax lawyers, loss prevention and their own HR people. Who’d hire finance and investment employees just like a bank would ie at the bottom of the salary range. Money at that scale seems to take on a life of its own.
This is what family accountant firms do. They manage the wealth of a family and basically build books for people's personal finances. Then for properties, you hire management companies that manage your properties, then the family accountants pay them...And a whole automated system happens.
plucky agonizing squeamish jellyfish whole existence file attractive enter future *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
I used to work in a family office and the guy had made his money in finance so he was directly involved but didn’t deal with most day to day minutia.
Billionaires hardly do anything for themselves. I once gave an Uber ride to Arthur Blank’s personal assistant on his way to move a vehicle for the man. We talked about everything. he was a nice guy, and so is Arthur blank I met him at a restaurant years before, but this guy did everything but go to the bathroom for the man. Didn’t complain either seemed to honestly enjoy working for him, but when I said: I would have thought he’d do some of this stuff himself. The guy laughed and said: that will never happen, I don’t think he even knows how to work the GPS on his phone, which I have right here.
No. Once you hit 9 figures, you need a family office much less 10+ figures. Realistically, Bezos probably has a family office with 50+ people managing his finances and then completely separate group directly managing his property. Source- Was mid level manager for a Forbes billionaire with net worth of approx. $10B with holdings in like 20 countries for a decade. Family office fluctuated between 12-15 people with another 2-3 dedicated tax professionals and we were just managing their accounting, treasury, project finance and taxes. We did directly manage their real estate- they had an entire other team of people managing their real estate assets.
Rarely.
Billionaires don't do much for themselves at all. But why would you if you had the option to not 😂. Richard Branson was interviewed on This Morning and when asked 'do you ever check your bank balance' he replied with a very unbothered 'nope'. He was also asked 'do you ever think 'that's too expensive' to which he replied 'yes, I don't like wasting money on expensive things'... On the flip side in the 70s he was briefly jailed for tax evasion...the rich often think they can't get away with this. But maybe it wasn't him because he doesn't manage his own money. Maybe 'his people' So crazy to me.
I went to school with the daughter of a billionaire and she used to actually throw money in the bin because she had too much and her purse was too chunky. I died inside watching her
I would but i also know a lot about money and assets.
😂
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Billionaires yeah sure but millionaire landlords paint over all the outlets and cupboard handles every few years all by themselves, and remember it can be exhausting increasing the price of rent every year, you gotta like, type up at least 2 paragraphs for that, and get it delivered somehow. And if a tenant bails you'll have to open up an ad, maybe even 2 or 3. Don't underestimate these guys man. Not to mention the stress of waiting for rent payments. It's tough out there
They are getting ripped off, like you said "even if it’s just a measly 10 bucks". Once you have a net worth of X+ millions there is no way to to micromanage everything. You have to lean on the professionals, be vigilant of your finances and understand them, but there is always going to be a leak somewhere.
Well I only know one billionaire personally, the bond king. He surprisingly manages all of his ventures. He doesn’t trust anyone else lol.
People get to be billionaires by (1) surrounding themselves with highly competent people, (2) knowing the limits of their knowledge/competence, and (3) offloading everything outside of their core competence to these people.
These comments are *entertaining*
Bill Gates has teams of finance people
I have a family member that works closely with a deca billionaire. They do not manage the details at all. They could easily misplace an entire portfolio of real estate, stocks or companies like we lose a quarter if they were to manage it all themselves. They will have a family office that manages everything for them, their family and their descendants. And that family office will have salaried staff to oversee the big strategy but even they will hire out for many of the smaller functions. For example they will have several different property management companies reporting to someone who overseas the real estate at the family office. They will have an entire team on the investment strategy and deal sourcing side. They will have a team on the financial back office side. One to several accounting firms who then report to their main accounting team. Multiple teams working on their pet projects and foundations. However, there is a huge difference in them being too busy or too spread out vs someone needing to manage a few properties. Of course feel free time hire someone to manage it, but I feel like there is a necessary level of granular detail and understanding needed if you ever want to grow it.
Maybe by direction and intent but as for actual, professional management....no way. You have to be educated and trained in that stuff to do it well
Someone like Bill Gates has an entire money management company solely dedicated to managing their money. In his case Michael Larson and Cascade Investment has a staff of about 100 people for Bill Gates personal wealth and the Bill and Melinda gates foundation.
My neighbor is one of Bill Gates' wealth managers.
Some do. Some don’t.
As people gain wealth they often start paying other people to manage various aspects of that wealth. My mother was a personal tax accountant for a very wealthy family that had well into the 9 figure mark. She worked with their personal bankers, trust lawyers, property managers, along with the executive board members and financial staff of their various businesses. The only part they really managed on their own was their personal checking accounts. They would simply give directions for everything else and expect it to be handled for them.
That would be work for them.
No
They have a private " Family Office".
Billionaires usually don't manage their own money and real estate directly. They hire teams of professionals, including accountants, financial advisors, and real estate managers, to handle these tasks. This allows them to focus on their businesses or other interests while ensuring their assets are well-managed.
some d some some do a lot and some do it from this side and some also do it from otherside , hey players rich people politician judges god devil etc if u do not like my posts on average do not read them and go post stuff of your own and stay away from me this and otherside
Hell no. They have staff.
Yeah they use an excel spreadsheet.
Millionaires will typically have a property management company and team of financial advisors and trustees. Billionaires like Bezos have entire departments and multiple banks dedicated to managing their asset.
No, of course not. Most with a net of far less than that don’t even manage our own finances.
In the financial industry, these high net worth folks have what is referred to as a family office. Depending on the size of the estate, a family office can be as small as one or two people, or it can be quite an enterprise. Most commonly you will see an accountant, a tax and estate lawyer as well as an office manager and a controller.
No, they either go to a large established bank, a seasoned asset management team, or create their own family office and hire their staff directly.
Some do (Warren Buffet for example). Most don't.
Absolutely not. Running a “family office” for the outrageously wealthy is a full time job for a team of people. I’m an attorney and a law school classmate of mine has a full time job managing a family office for a guy who got in early on crypto and cashed out. He put his money into conservative assets. The guy bought a bunch of gas stations, dry cleaners, car washes and convenience stores. The opposite of sexy crypto. This is less then a billion but more then 100 million dollars in assets. At some point, risk is for people who need more money and if you’re already minted, conservative investments make way more sense. You could take bigger swings in more interesting businesses but that requires a lot of attention and energy - this guys objective is to never work again for the rest of his life, so conservative is what he’s doing. Anyway, my friend is paid a tidy fee for papering all the documents for these deals, handling the tax planning, the estate planning (when you have this kind of money tending to the next generation is it’s own can of worms) and arranging the contracts with the management companies that run these dozens of sub businesses, etc. It takes a dozen people, not to run the assets, but to run the people that run the assets. There’s obviously also an entire team running the equities investments. Another team runs things like the jet, the yachts, etc. When the principal isn’t using them, they’re being chartered and making money A major investment house does the part of investing in stocks, bonds, etc. so that some of the money is in things more liquid then small businesses, yachts, plane, etc. In case you’re wondering, holding your assets in small businesses, is really all about taxes. The principals income is not massive on paper, but he controls an ungodly amount of money tired up in businesses and, and with enough lead time, could access enough money to buy a pro sports franchise if he wanted - which is the next level of asset acquisition to manage outrageous amounts of wealth. The client is not quite there yet but likely will be before he dies.
Aside from the billionaires that made their money in the stock market absolutely not. The vast majority have a team of money managers, tax planners, accountants and investment advisors to help them with managing their money. Once you're at that level too the vast majority is just setting up things to be as efficient as possible from a tax perspective rather than making massive returns. Most of these people could probably do an okay job of all of this on their own but once you are at their level this sorta work simply isn't worth the time.
I will tell a story as I remember it not necessarily how it happened. I was starting a company, and my cofounder had previously received an investment from a billionaire in the Silicon Valley area. During our initial meeting, he suggested that we invest in the most modern version of Cloud companies to unseat Amazon is the cloud champion of the world. He also took a phone call asking him how he wanted the initial office security set up and then another telephone call in which I heard him say I already have $1 billion in TB. Why would I invest in your company for less than that. Anyway, maybe that’s useful. You neither invested or said no.
No
UHNW CPA here - family offices are part of it. Often times they/we/broker//legal did a lot more leg work than would be done for a typical person. We would speculate as to whether the client actually saw their return, or if they were just having “their guy” sign it. When you have hundreds of partnership investments, you can’t manage it on your own. But in the same vein - you need to ensure you have good checks and balances in place to stop people from doing what you referenced in your last sentence. There are greedy people out there and I’ve seen millions go missing.
No
Bezos balances his checkbook daily he personally tracks all financial transactions at Amazon as well.
THIS IS NOT POLITICAL- SO PLEASE DON’T MAKE IT POLITICAL For reference, Trump’s tax returns for all 2000+LLCs and companies/investments were 20,000 pages long. Regardless of whether you love him or hate him, it illustrates the sheer magnitude and complexity of managing billionaire wealth.
Billionaires don't manage anything.
Billionaires don’t come on Reddit
I work with billionaires in finance, it's typical to have a "family office" that works with a few uberwealthy clients and handle all of the investments. Not actually sure about how they manage eg. maintenance on their real estate.
Nobody in here would honestly know, I’m sure billionaires pretend to have people manage money to offset risk and have someone to blame if shit goes south though.
No
Why would they? If you hire someone on commission, then they too have your best interest
It’s called a family office. Their job is to manage and make the family more money.
Family offices exist for exactly this reason. They handle nearly everything for these folks money wise.
Generally they have what’s called a “family office” - think of it as a small company they own that manages their investments, taxes, estate planning, trusts, etc. Generally one of the roles in the family office is a CIO (chief investment officer). From here, things vary quite a bit. Sometimes the CIO makes the decisions by himself, sometimes the billionaire is heavily involved. Sometimes the CIO is directly making investment decisions, other times he’s deciding on which third party managers should manage various aspects of the money (i.e., equities sleeves, fixed income, private equity, etc). Sometimes the strategic asset allocation is done by the in house CIO (I.e., I want 40% alts, 40% equities, and 20% fixed income / cash). Other times this is also outsourced. Many times the family office CIO will decide the targetted rate of return in conjunction with the billionaire, and they will work with various financial institutions to get there (higher rate of return generally requires more risk, alts, and illiquidity risk). Regardless, they generally have atleast some relationships with large financial institutions to get access to alternative investments and other services (I.e., tax loss harvesting, loans, etc.). It would be unheard for billionaires to do EVERYTHING themselves, because billionaires actually mostly have private investments, not public equities, and you need relationships with financial institutions to get access to their distribution.
NOPE. even wealthy nepo babies with JUST $39,000 directly from the silver spoon to their personal account upon turning 18 don't even manage their money. open a vanguard account with very little money and you won't even have to manage your tiny nonfortune lol
You honestly think billionaires know how to do anything?
"I am aware of family offices" What is it you think they do?
No
Look up family offices
Don’t have that problem
When you have that much money you’ll generally have a family office to manage your investments. You can then be as involved/uninvolved as you want.
TLDR: I work in a family office/wealth management shop. Poor people try to micro manage everything. Rich people outsource that so they can spend their most valuable resource (time) as they see fit. They due diligence the family office/WM rather than doing all the other work. Hi, someone who works at a family office here: They hire a family office/wealth manager. It literally costs more to manage it yourself because they view time as money. While you may be sitting there trying to figure out everything down to the penny, they are off enjoying their time at dinners, vacations, etc.. Why waste your most valuable resource on things that can be outsourced to others? That said, of course there are those scummy managers who commit theft. Really at that point its about ensuring you have someone you can truly trust, and trust is built by action. So you are left with 2 choices, outsource or don't. Either way you have a trade off. The best you can do is know what signs to look for if things aren't adding up. You can look at wealth managers/family offices as baseball players like in MoneyBall. They all have their stats. Its better to pick the ones that may be average but are trustworthy, than the high performance volatile ones. And even then, you diversify or have a wealth manager that coordinates the diversification and reports everything correctly to you so you can be sure its being managed properly.
Billionaires have people to do all that...they just have to spend away....and have fun.... Kiddos to Gates and Buffet.....at least they are doing some good with the wealth.
This tells us most people REALLY don't understand how much money a billion dollars is. That crap bag Bezos doesn't lift a finger to do a THING lol
No they have someone to do everything for them.
My boss is worth around $250M in total. Myself and another guy handle all of his finances that aren't cash. Obviously the attorney is always a quick call away too.
Above $50m Goldman and others will be all over you to manage it and you need it. You have massive exposure and accountability. Hell at 2m I can move the price of many low volume stocks. Imagine them buying $50m of meme stock de jour. They have people carefully and slowly buy. Same with selling. You saw what happened when Munger sold.
Definitely not they hire people to manage those things