Rich person puts a billion in the bank

the vast vast majority of richfags are born into their money

even trump, even though he turned his 1 million into billions and it was technically a loan

>putting a billion dollars in the bank when you're only insured for $250k
>putting this much trust into a banking institution

>billion
>in the bank

you do realize that basically everyone on the planet worth more than 2 billion dollars has acquired it through the ownership of assets and shares in companies, among other things, right?

someone like bill gates or warren buffett can not just put "a billion dollars in the bank", because they don't have that amount of money to spend. if they wanted that money, they'd have to pull out of various investments, and i doubt any bank or company would be willing to just straight up hand them a billion dollars.

like, you don't understand how this works. berkshire hathaway has roughly a 9% stake in Coca-Cola for example, and that's worth roughly 16 billion. for them to get even a billion dollars of their holdings, they'd have to get either A: Coca-Cola to buy the stock back (possible but somewhat unlikely), or B: Other people to buy those shares (possible but unlikely, in fact would probably make people hesitant to buy said shares because such a large shareholder in such a large company pulling out would be seen as a bad sign)

i wouldn't be surprised if gates somehow could put together 700 million or 800 million in pure cash to buy himself something, but it's extremely unlikely that he could get a billion dollars that's completely liquid. furthermore, i doubt he'd be able to find a bank willing to accept said billion dollars outside of a business deal.

and lastly, it's just a plain dumb idea to do that to begin with. what if the bank defaults? what if the bank gets embroiled in a huge scandal and gets buttfucked by the IRS? why would you even put a billion dollars in a bank to begin with, considering you're only going to be getting interest and interest is extremely small compared to what you could otherwise be doing with it?

>not putting your money in multiple banks to diversify risk

You're scaring the children

Of the 585 billionaires in the U.S., 363 -- or 62 percent -- made their fortunes themselves, says the report by Singapore-based market research company Wealth X in collaboration with Wall Street Journal’s Custom Studio.

entrepreneur.com/article/269593

one last thing:

in terms of compounded book value, berkshire hathaway has achieved a 20% year over year improvement in it's worth for basically the last 50 years. 0.1% is nothing.

>He thinks rich people put large sums of money in savings accounts

This is why you're poor.

>A: Coca-Cola to buy the stock back (possible but somewhat unlikely), or B: Other people to buy those shares (possible but unlikely, in fact would probably make people hesitant to buy said shares because such a large shareholder in such a large company pulling out would be seen as a bad sign)
>i wouldn't be surprised if gates somehow could put together 700 million or 800 million in pure cash to buy himself something, but it's extremely unlikely that he could get a billion dollars that's completely liquid. furthermore, i doubt he'd be able to find a bank willing to accept said billion dollars outside of a business deal.
you're fucking retarded.

>the vast vast majority of richfags are born into their money
So?
What is wrong with leaving money to your children?

>Not investing in real estate
>Not actually managing finances

Hi there norge-bro

Here in Canada & the US, we've averaged 4% inflation/year for the past century.

In some years, inflation has been over 10%

those shares they own will pay a much higher yield in dividends than being left in the bank. same with rents from properties.

I had an inheritiance of 1million.

Invested it in high yield stocks, they pay out ~4%ish per year in dividends (40k) so I just live off that.

care to prove me wrong?

What's your point?

>he thinks money is static

Money is a fluctuating set of beliefs. It's better to own stock in dividend paying, high earnings, low risk (low variance) companies than to hold cash making 0.1%.

yes friend, that's my entire point.

real estate is a meme
it's a bubble that will burst again and again and the low-tier players will pay the bill again and again with taxpayers.
this will continue until they eventually fix the system, which they wont, since it benefits the ones who are in control.

Gates actually has a shitload of cash lying around for his philanthropic ventures. he's been deliberately trying to give away 90% of his fortune for the last decade or so.

so those guys are literally getting cheques in the mail for say 2-3million per year on their billion dollars in stocks

nobody puts away a billion for that interest rate my dear boy, you are foolish

The assumption being those sticks will maintain
>Federal reserve says no

>why is this allowed Cred Forums?

jews

If money breeds money, then all you need is money.

There's no way to keep your money in the bank and not get eaten by inflation

You always need to be reinvesting your extra cash otherwise it just evaporates year by year

This is the major thing separating rich from poor.

Think of it this way, if you grandpa wasn't an idiot who squandered every pay check and lived from week to week you would also be rich now.

All it takes to make your grandchildren rich is to invest a small portion of your income every single month.

Obviously 99% of people are too short sighted to ever do this and it's way easier to blame the rich for their own idiocy

rates going up can only help me at this point.

Over same time frame, he loses about 20 million in relative value due to inflation.

Yeah, someone had to jew or work their way into their wealth either way, even if it is inherited.

mark cuban claims to often keep about two billion dollars more or less in cash.

but ur right he must mean in highly liquid funds, not a checking accnt

He already did. He called you retarded. He won this battle of wits

You're assuming you can't ride bubbles. Learn market behaviours and keep an agile portfolio and you'll be ok. It isn't a garunteed investment, but I'd rather rent houses than hold bonds.

you ever stop and think where that interest rate comes from?

the banks loan that money out to good little goyim like yourself and you pay the interest that the richfags gain every year.

you're getting scammed by the kike banks and you think some random richfag with a billion sitting in the bank is the reason they make 1 mil a year passively.

>philanthropic ventures
Fuck off, the bill & melinda gates foundation literally exists to funnel money around while not getting taxed. The Clinton Foundation is the exact same. maybe once bill gates dies all of his money might go to charity, in fact i wouldn't be surprised if it did, but for now it's just for a bunch of business deals disguised as philanthropic pursuits.

yes, companies are. the individual people are not. OP was talking in reference to a singular person ("rich guy") handling that amount of money, and that's ridiculously rare. most of this money is funneled through companies, the individual people don't actually ever see most of that money. they might get the company car which is actually their own car and so on, but it's not their money directly.

'more or less'. if that was an actual quote of his, he probably is including shit that he could easily turn into pure cash in that number. i wouldn't be surprised if the man had 200-300 million or so to throw around, but i'm pretty damn sure he can't just start spending 2 billion without taking it out of various other things first.

This.

My grandfather was a genius with money. Grew up in a poor section of Brooklyn, but started saving from the age of 19. Had a Ph.D., a full time job as a chemist, and a house by the age of 24.

He's 83 now, and lives in the penthouse of a building in Manhattan. He can pay my tuition in full. I'm planning on doing the same for my grandchildren.

Being rich is less of a genetic accident, and more of a filial tradition.

I've seen the figures be estimated at 61% the other way.
And of these ultra rich they were born into luck via technocracy right place right time or in the right place to exploit corruption and exploitation of resources like the russians arabs and chinese.

>And of these ultra rich they were born into luck via technocracy right place right time
Implying that working hard to be the first to put out a great, innovative product is luck. Kill yourself Britfag, even after leaving the EU you will always be a cuck.

Jesus Christ. Europeans have the mentality of children when it comes to economics.

Not if you're all in on stocks, although that would be retarded. Stocks are currently inflated, but I hope you're clever enough to maneuver around the inevitable crash.

Psst.

Hey dumbass.

The interest rates should be much higher than 0.1%.

They should be at 5.0%.

That way, not only do billionaires make money on interest, but the regular people who count on bank C.Ds too.

The Jews have destroyed the global Economy.

I bet you don't even know what C.Ds are, do you poor faggot?

We have had deflation in euro i don't know why

And if these ultra wealthy squander their wealth, so be it. If not, so be it. Envy is not justification for fiscal policy.

Damn, Our here Our media and Economists goes batshit crazy everytime its over 2% yearly

Also understand what makes people rich. You get rich by having idiots consume your product. There is no other way.

You want to be rich? Stop being the idiot consumer and start being the smart provider.

Obviously not everyone can be the next Jobs, but you can become a creator by investing your money into companies that create products that people consume.

What do poor idiots who will always be poor do? They take out banks loans so they can buy a new TV, a new car, a new Iphone. They take out 50 year mortgage so they can live in a bigger house. Instead of saving that extra 10% of a paycheck they use it to go out, or go on vacations.

All things that are nice but not necessities. You and your family will never escape the ratrace as long as you are consumers.

It's actually incredible how cheap living cost is and how much you can save to invest if you restrict yourself to absolute necessities.

Even in this terrible economy someone starting at 20 with nothing but a minimum wage job can easily become upper middle class by 50 if they are smart with their money.

Bill's mother had IBM contacts, without which none of us would be using microcuck. What makes some or even most of these technocratic companies successful is not innovation or business acumen on the part of the owner, but luck for various factors. Strip Shill Gates or Cuckerberg and tell them to compete from scratch and we'll see how much is skill or if they can make lightning strike twice...
I'm not speaking out of envy and I am not speaking about policy, just shining a light on the delusion that some rich have about their "story" and the narrative behind their success.

Bernie, go to bed.

>the top 0.0000000000000000000000001% was lucky

No shit. If your goal is to get to Bill Gate status obviously you will fail. Getting to the top 5% however, is much easier than it seems.

Because they are never taught it m90
Technically the US isn't anymore either since public schools cut it back in the 90's but considering all private, Catholic, religious, boarding, and votech schools in the country still teach you on it at least twice it's not accurate to say we are on par with them

I agree 100%, just arguing with the bullshit 60% self made statistic used to prop up the myth.

> not knowing about negative interest rates.

>Why is this allowed Cred Forums?
Why is which part allowed? The part about people being legally able to own capital? The part about capital being able to buy shares of companies via voluntary transactions? The part about companies making profits by employing labor productively? The part about those profits being distributed among the legal owners of the company?

You don't understand economics. You should read "Basic Economics," by Thomas Sowell.

They don't usually keep that much money on hand, they can earn a lot more than $1,000,000/year by investing it, which incidentally puts money back in your hands. The reason banks pay out for this behavior is because it enables THEM to spend that money without his permission, which incidentally means they'll never have a billion dollars to give back to him. This is the money they use for loans, and they keep just enough money on hand to handle some withdrawals.

If a rich guy puts money in the bank instead of spending it, he's not actually keeping the money, he's exchanging it for credit. This is not the same thing as actually having a billion dollars. If he's not going to spend it, his bank will. Most people don't have any real money, just credit which "sort of" allows them to spend that money. Really you're exchanging IOUs and when you're dealing in large enough amounts there's a very real possibility that you won't be able to get your money back.

Debt has become its own currency. Banks couldn't really pay any of the IOUs in circulation, so when people want to pay for something they just take their own name off the IOU and give it to someone else, implying that the bank would cover the cost. Yeah, our economy is a joke, but technically a rich person depositing their money in a bank is more like a shareholder in the bank than actually wealthy.

The only reason it's allowed is because this is how Jews prefer to make their money.

>Even in this terrible economy someone starting at 20 with nothing but a minimum wage job can easily become upper middle class by 50 if they are smart with their money.

what is the point of living such a gray life, so you can say you're "rich" when you're 50 and have nothing to show for what were the healthiest years of your life, besides working and hamstering away every dollar?

Sounds like a horribly bleak life, would rather be poor and rich in experiences than work my whole life so I could tell everyone living the life I was too much of a coward to pursue that they are doing it wrong because they aren't building a nest egg like me, so that they too can be old and boring with cash in the bank.

You are advocating money worship, which is honestly satanic/luciferian

you're clearly under 24 since you think that life ends when you're 50, i bet you think someone who doesn't have 3 kids and a house by 30 has wasted their entire life

i'd much rather be rich as fuck at 50 than dirt poor with memories of being balls deep in some whore and going on vacations with credit every day

no one in the world is retarded enough to put a billion dollars in the bank. have you heard of diversifying portfolios? the average mutual fund will make you 5%, most government bonds make you at least 2% short term. no one would ever put a billion in for .1% unless they were a millenial

Because someone has to do it. Almost everyone who is well off today is so because someone in the past decided to be smart with money.

The goal is not to say you're "rich" the goal is to provide the best possible future for your children. I wouldn't even consider having kids if it would mean they'd have to start from the bottom.

If your family is poor it sucks that you have to be the one to go through this but it has to be done.

Nobody has a billion dollars cash you retard

another thing: saving and having fun aren't mutually exclusive, i can have meaningful interactions with other people without going into debt and fucking myself over

Only about 0.000000001% of people are born millionaires. Everyone else just had to work for that money. Living on the interest of your accumulated wealth means you've accumulated enough wealth to live on the interest. So good for you.

cuck

Those who fought against it failed.
Maybe we will oppose it again.

Yep there's many traps in modern society to make people think they need to spend their income on meaningless and valueless stuff otherwise they will never be happy.

Look up Edward Bernays. He was the one who revolutionized marketing and turned publicity from "buy this product because it adds value" to "buy this product because it will make you feel good"

the grand ayatollah of iran does now, and hes going to part it out among all the terror groups of the middle east thanks to king nigger in chief

breitbart.com/national-security/2016/09/07/confirmed-obamas-entire-1-7-billion-tribute-iran-paid-cash/

How and where would one start investing?

...

>investing advice from Cred Forums
no

BECAUSE YOU SHOULD HAVE THOUGH YOUR SITUATION THROUGH BEFORE YOU WERE BORN INTO IT YOU LAZY WICKED SLOTHFUL WORTHLESS SPECK!

going to /biz/ for investing advice is like going to /k/ for advice on weapons

He didn't just magically pull that billion dollars out of his ass. He earned it somewhere. And even if his Dad gave it to him, he's a product of his father's hard work and he deserves to see his children live as well as he did off of the back of his hard work.

And do you even know what interest is? That billion dollars is being used by the bank to finance your mortgage, business loans and everything else that banks do.

Without millionaires with money in banks society would not function.

1. Pay off ALL your debt
2. Set up a Roth IRA
3. Allocate a portion of your monthly income (as big as you can) and invest it in an S&P 500 index fund. You should do this for at least 20 years.
4. Down the line when you have more capital you can start diversifying into other fields such as real estate

It's really that easy. People are just short sighted idiots who can't bring themselves to say "no" to the latest bullshit product they don't need.

invest in guns beans and bullets

What banks allow a private citizen to deposit a billion dollars in their bank account?

When I look at my credit union it says they can only guarantee up to $250,000 will be covered in the event that they lose my money so why would I put all my eggs in one basket?

>this is what bootlickers actually believe

This. He has 1,000,000x more money than you ever will because he worked 1,000,000% harder.

Just start buying stocks. I have $12,500 so far but I'm working on it. Average return of 4% in dividends. Every 3 months I get $125. Not much but that's ok.

Buy blue chips cheap when the economy tanks. Buy pot company stocks for super cheap. I have 500 shares of CGRW.

Netflix went from $7 in 2012 to $100+ now. Just look out for what people like and buy.

1. Buy The Warren Buffet Way, The Intelligent Investor, Security Analysis by Graham and Dodd, and Financial Statement Analysis and Security Valuation, and, very important, Poor Charlie's Almanac. The last contains a reading list of about 20 or so books, buy those too.
2. Read them all. Understand them all.
3. Save up while you do this in the course of a year or two.
4. Open a cheap stock portfolio
5. Buy mid to small cap to start out (unless you're fairly wealthy already), there's more growth potential there, just as Munger recommends.

Interest doesn't cause inflation, the banks are literally paying you for letting them loan out your money.

What causes inflation is when the Federal Reserve decides our economy is doing too well and prints another few trillion dollars worth of currency.

I bought into EVA at $17 in January, it's $27 today.

>falling for the "small loan of a million dollars" line

Kek
Where do you think the rest of his fathers money went when he died?

>putting 1 billion in the bank
This is actually very creative b8, because you misdirect with the feigned class war rhetoric. Well memed.

How would I even buy stocks?

You're talking to someone who has 0% knowledge about trading stocks, so I literally do not know where to start.

underrated post

>>/biz/

Go there and look at the Robin Hood Generals. It lets you buy stocks outright.

With the internet. You can get trading apps on your phone these days.

>he thinks rich people accept a 1% return
>there are people who think this is how capitalism works
Holy fucking retard

>Matthew 6:24
>"No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money."

Low interest causes inflation, not interest in general
EVERYONE ON THIS BOARD NEEDS TO GO TO FUCKING SCHOOL YOU FUCKING RETARDS

>dollar is only worth 5 cents
I'll buy all of your dollars at this rate then.

>rich people put their money in a current account
wew

>thinking pure sector assets means diversification
Oh my God shut the fuck up

I knew a fucking 22 year old finance senior who was given a 1.5 million loan to open a fucking bakery in Dallas.
And she made 10% growth per year.
Loans aren't fucking spectacular if you're not a moron.

If you think $1 million loan for New York real estate is even close to a fair draw, you're a fucking retard

you really need a million dollars a year to be comfortable?

most people could be comfortable on 1/20th that amount.

>inheritance tax

more like jealousy tax

>he thinks a $500k+ collateralized 15/30 year loan at 3.5% is a solid investment
>he thinks the current valuation of real estate isn't another bubble
Nigger there's a housing issue every 8 years the fuck are you on about
They just green lighted subprime mortgages again.
I'm sure actual home owners are ok with that

Because the euro is worthless.
That's why.
It was never really worth anything to begin with, then the entire EU economy started getting chipped away like yer mums teeth

That's not what it means to diversify anything m8.

Dude, just stick it in the bank and you magically get money back. FREE MONEY DUDE.

Reminder

>4% is high yield
Nigger, you're taking risks you obviously don't understand.
I'm at 30% average growth over two years with a portfolio beta ~1.2
4% is a fucking 5 year bond rate for dotcom risk
You suck

>just invest in the perfect stock lol

>only billionaires are richfags

What % of millionaires were born poor?

Dividends paid are literally added to a brokerage account/ portfolio as buying power initially, then it can be withdrawn like a savings account
Electronic funds transfers of capital gains and div yield has been going on for decades

100% and they're still poor

He said dividends, not growth, faggot.
Two entirely different investment strategies.

CTR shills slowly losing it

>30% average growth

not gonna last that long

because we havent evolved to a true socialist society where how hard u work determines income and the workers own the means of production.

checkout nazbol for true way

It should be noted that only bank deposits up to a quarter million dollars ensured. So in the case of a currency collapse anybody with more than 250,000 in the bank only has 250,000 in the bank.

In theory...

*cough*TARP*cough**COUGH*TOO BIG TO FAIL*HACK**WHEEZE*CORPORATEWELFARE*COUGH*

>interest rates increase
>inter bank exchange rates increase
>account rates increase to reflect new risk
>bonds rates increase to reflect new risk
>current outstanding bonds are devalued because their yield sucks dick
>bonds are a higher yielding asset for portfolios
>stocks sold to buy new bonds or to buy devalued bonds
>interest rate hikes help my pure equity portfolio
You ever notice that even rumors of rate hikes kill the indexes?
Goddamn how are there so many retards talking about money

you are why we can't have nice things

>not knowing about bank exchange
>thinking interest is for high Roller savings
Stay poor

66% port being against market ultrashort etfs like (:SDOW)
Bought after brexit settle and already up 10% since.
Looking to VIX for the real deal no shit rate hike once Trump is elected.
Maybe even before.
I swing my man.
I don't care which way the market goes, I make money.

youtube.com/watch?v=6P97r9Ci5Kg

IMMORTAL SCIENCE OF NAZBOL IS ONLY WAY TO FIX HUMANITY

And not fucking 1% either
Wat a JOKAH HAHAAAHAHA

>interest doesn't cause inflation

>- "here is a $100 sir, the only $100 that exists"
>- "make sure you pay me 20% interest"
>b-but mr bergstein, how can i pay you an extra $20 that doesnt exist
>- "well goy, you're going to have to take another loan out or find someone else that will"

How else do you think we can pay off debt? By printing money and creating more debt ofcourse!
That's basically inflation.

I dunno about you but $20 still has the same spending value as it did 10 years ago.

I grew up poor in the 90's and always looked forward to when I might get $20.

After an up in my life, i'm back down and poor again, and still look forward to $20.

the drastic sense of inflation is a meme that came about from switching from gold standard to fiat, and subsequent "minimum wage" laws which do the most damage. Increasing "minimum wage" on the government level is retarded cause it's really a flat wage increase across the gamut, to which prices increase and nullify any benefits. Anyone who thinks they're going to get $15 an hour for frying potatoes at a fast food restaurant while a STEM worker gets $20 an hour is fooling themselves, so you're going to see that same STEM job pay out $10 more an hour to the ultimate effect of devaluing the money altogether.

Some corporations and companies can afford to pay their employees more and if they did, you'd see a lot fewer niggers complaining about having to work at mcdonalds or walmart - and it wouldn't cause inflation since that extra money is coming from the corporations cut of profits.

Surprise, surprise--a little money can last for a long time, if you let it.

yeah you're speculating hard

prepare to have life teach you a lesson on proper investing mate, learn to make ramen.

this

Nobody actually has a billion dollars cash sitting in a bank account. You diversify and buy assets. Real estate, Art, Jewels, etc basically never decline in value over the long term.

I bet you aren't even top 10% yourself
What makes you the expert, nigger?

are all britbongs as dumb as you?

Do all burgers not know what a joke is?

Don't even bother starting investing unless you have at least a spare 10k lying around.

And I mean spare. Money that you can invest and "forget" about / don't need.

Its a delusion, the richer they get the more debt they pile up, especially with credit.

The jews already own them.