How much cash do millionaires keep on hand?
Wealthy individuals generally manage their liquidity by keeping only a modest fraction of their total net worth in cash or highly liquid cash equivalents, striking a balance between operational readiness and opportunity cost. Keeping excessive cash on hand results in lost purchasing power due to inflation, prompting affluent individuals to deploy the majority of their capital into growth assets like equities, commercial real estate, and private businesses. However, ultra-high-net-worth individuals still maintain robust liquidity cushions—often amounting to millions of dollars in short-term Treasury bills, commercial paper, or money market funds—to seize sudden investment opportunities, fund luxury lifestyle purchases, or navigate economic downturns without being forced to liquidate long-term investments at unfavorable market prices.
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