America may be adding millionaires at a rapid clip, but currently there are only 400 people who've achieved the ever-elusive billionaire status.
We couldn't help but ask ourselves –– what does someone do with that much cash?
"If you had a million dollars of investable assets, you're concerned with making the money last," said Tom Orrechio, a principal at Modera
"If you have a billion, that's not an issue."
Orrechio has been working in wealth management for more than 20 years and served a year as chairman of the National Association of Personal Financial Advisors. His main clients are millionaires and the firm serves about 500 families. But Modera handles more than $1 billion in total assets and Orrechio is familiar with the process many
Turns out a few zeroes make a huge difference. Bllionaires require a fleet of financial specialists to make sure their finances are up to snuff.
They don't just hire financial planners. They hire financial officers.
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Hiring a financial management officer is top priority. A billionaire often hires several people to work directly for them in a "home office," doing everything from paying monthly bills to handling travel expenses, Orrechio said. It's like a mini-corporation and one-stop concierge service all in one.
"If you're a billionaire, you might be making large gifts. You have more sophisticated estate/tax planning, [and might manage] multiple legal entities," he added. "You have different individuals to handle those entities."
People who fall in the middle of the millionaire and billionaire range often hire a financial team to cover several families in their income bracket.
"The Rockefellers are a good example," Orecchio said. "What a lot of these wealthy families decide to do, they have the scale and infrastructure costs covered, so they can open up to multi-family office."