Reported 11 months ago
High-net-worth individuals (HNWIs) with over $1 million in liquid assets often keep around 15% of their investment portfolios in cash and cash equivalents, according to the U.S. Trust Survey of Affluent Americans. This strategy ensures liquidity for seizing investment opportunities and meeting short-term expenses. Cash holdings tend to rise with increasing net worth and age, with ultrahigh net worth individuals sometimes holding more than 20% to 30% in cash. Various reasons, including liquidity needs, risk management, and operational flexibility, drive the rich to maintain substantial cash reserves as part of their overall wealth management strategies.
Source: YAHOO