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How the Other Half Banks

Angelo Ward

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Published in How The Other Half Banks: Exclusion Exploitation And The Threat To Democracy

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How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy

by Mehrsa Baradaran

4.7 out of 5

Language	:	English
File size	:	828 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	337 pages

The wealthy have different banking habits than the rest of us. They tend to use more private banks, have higher balances, and invest more of their money. Here's a look at how the other half banks.

Private banking

Private banks are designed to cater to the needs of high net worth individuals and families. They offer a range of services, including:

Wealth management
Investment advice
Estate planning
Tax planning
Trust services

Private banks typically require clients to have a minimum net worth or investable assets. They also charge higher fees than traditional banks.

There are a number of benefits to using a private bank, including:

Personalized service: Private banks assign clients a dedicated relationship manager who can provide them with tailored advice and support.
Access to exclusive investment opportunities: Private banks often have access to investment opportunities that are not available to the general public.
Discretionary investment management: Private banks can provide discretionary investment management services, which allow clients to delegate investment decisions to a professional manager.

High balances

The wealthy tend to have higher balances in their bank accounts than the rest of us. This is because they have more disposable income and they are more likely to save and invest their money.

According to a study by the Federal Reserve, the top 1% of households in the United States have an average checking account balance of $371,000. The bottom 50% of households have an average checking account balance of just $2,500.

There are a number of reasons why the wealthy have higher balances in their bank accounts:

They earn more money: The wealthy earn more money than the rest of us, so they have more money to save and invest.
They spend less money: The wealthy tend to spend less money than the rest of us on discretionary items, such as entertainment and dining out.
They invest more money: The wealthy invest more of their money than the rest of us, which helps their money grow over time.

Investing

The wealthy invest more of their money than the rest of us. This is because they understand the importance of growing their wealth over time.

The wealthy invest in a variety of assets, including stocks, bonds, real estate, and private equity. They also tend to invest in more sophisticated investments, such as hedge funds and venture capital.

There are a number of benefits to investing, including:

Growth potential: Investing can help you grow your wealth over time. The stock market has historically returned an average of 10% per year.
Income generation: Some investments, such as bonds and dividend-paying stocks, can generate income that you can use to supplement your retirement income.
Tax benefits: Some investments, such as municipal bonds and 401(k) plans, offer tax benefits.

The wealthy have different banking habits than the rest of us. They tend to use more private banks, have higher balances, and invest more of their money. These habits have helped them to build and grow their wealth over time.

If you want to improve your financial situation, you can learn from the banking habits of the wealthy. Consider using a private bank, increasing your savings, and investing more of your money. These steps can help you to build a more secure financial future.

How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy

by Mehrsa Baradaran

4.7 out of 5