I’ve been dealing with a new client over the last few weeks.

Our discussions and interactions have raised a dormant recollection about what the rich really do with their money.

You might think they spend it on frivolities or leisure pastimes.

And yes … there’s that.

But my experience is that they spend most of their time trying to protect their money.

There an old adage …

“You spend the first half of your life making your money and the second half trying to keep it” 🤔

The rich are no different from you and I in that respect.

Everyone wants to protect their capital base so you have something from which to earn income.

And when your capital base has quite a few zeroes after it, you take this VERY seriously.

This usually entails …

✅ Setting-up protective trusts

✅ Creating and securing related-party loans

✅ Reviewing and enhancing insurances

✅ Creating water-tight legal contracts with plenty of weasel clauses

✅ Saying “no” more often than “yes” (see here)

Ironically, the above is undertaken to protect one’s wealth from family members as well as outside parties.

Many a time has a family member ventured forth with family money, visions of success in his/her mind, only to blow the lot on some failed venture or “lifestyle-accretion”.

The ultra-wealthy are savvy to this and are only too aware of the fallibility to money that many people have.

They therefore arrange their affairs so that in moments of weakness, their capital is still protected and can continue to generate income.

Strict barriers are enacted to ensure no one can access funds, without proper authority and due diligence being undertaken.

It’s a form of familial love and discipline.

The rich have cashflow and family problems just like everybody else.

It’s just that they’re usually more … intense. 😉