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Private Banking For Multi-Millionaires? –PillarWM

Although private banks may appear to be the best choice for safely securing your wealth and allowing it to grow under the supervision of experienced bank managers, this can be far from the case. Private banking can be beneficial to you if you want an exclusive place for wealthy investors to store their wealth. However,they aren’t very helpful for high-net-worth individuals who have very different financial ambitions and obstacles. The level of personalization you need for your wealth and investment management cannot be availed from private banks alone. You can request our book7 Secrets to High Net Worth Investment Management, Estate, Tax, and Financial Planning,if you’re planning to invest between $5 million and $500 million.It will help you get started on your wealth management journey.

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7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning

The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.

Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.

For a more professional and customized approach, we suggest that high net worth and ultra-high net worth clients work with private wealth management firms. Firms like Pillar Wealth Management have the experience and expertise you’re looking for. Our wealth managers work with investors looking to invest between $5 million to $500 million, giving them fiduciary, unbiased, knowledgeable advice. To learn how we can help increase your wealth, schedule your first free consultation with us today.

It is wise to wonder, “Is my money safe in private banks?” With a fortune of your size, you should carefully weigh your options. Hence, in this article, we will talk about private banks, if they’re reliable, whether rich people prefer private banking, and why wealth management firms are more suitable for wealthy investors.

Table of Contents
What is a Private Bank?
Is Private Banking Preferred by Millionaires?
Do You Need Private Banking?
Is Private Banking Reliable?
Why You Should Work with Private Wealth Management Firms Instead
To Conclude

What is a Private Bank?

A private bank is a kind of financial institution that offers its customers a variety of financial services. Private banking, as opposed to other banking facilities, is designed exclusively for affluent individuals or clients with a significant amount of cash or money that can be invested or deposited into accounts. This answers the question, “What banks do rich people use?” These banks can also choose to set the cut-off at $100,000 rather than $1 million so as to not restrict their services only to the ultra-rich.

In the sense that you can pay your bills, use safe deposit boxes, set up mortgages, and so on, private banking is close to traditional banking. You’ll have savings, checking, and CD accounts, much as in normal banking, except a private banker can walk you through the entire operation. This saves you time as compared to going through the traditional channels.

Customers that use private banks have access to perks and services, personalized banking solutions, and higher interest rates that are not open to the general public. You’ll be able to pay lower transaction fees, gain access to exclusive credit lines, and take advantage of exclusive loan agreements at prime rates.

Some private banks offer services such as tax planning, retirement planning, and financial planning in their packages, although they might not specialize in it. Our wealth managers specialize in an array of wealth management services including, but not limited to tax, retirement, and financial planning. Get in touch with one of our wealth managers for your first meeting.

private banking

How Does It Differ from A Public Bank?

You might be aware that private banks are not the only banks out there. So, in order to know which bank is a private bank, you should know about public banks.

The government owns public banks, i.e., the state government owns more than half of their shares, whereas the majority of a private bank’s shares are held by independent investors, private shareholders, private institutions, or business entities. They have pensions and are often listed on the stock exchange.

Customers trust public banks to hold their funds, even though they have slightly higher but fully disclosed prices. The benefit they have over private banks is that the customer’s finances are not impacted in the case of economic constraints. The disadvantage here is that public banks take a long time to make the transition to upgraded or new systems. Receiving basic details or completing a simple task can often become cumbersome and laborious.

Is Private Banking Preferred by Millionaires?

If you’re concerned about“What banks do rich people use?” it is true that many millionaires choose private banks over public banks. Let’s analyze why that is.

A private bank provides millionaires with tailored investment advice and solutions to their specific financial problems, needs, and objectives. They protect your privacy by providing you with better prices, mortgages, discounts, and checking accounts, as well as higher savings rates.

They strive for total customer loyalty by implementing aggressive customer tactics and delivering high-quality service in a limited period of time. They cater to a broader market with high-end items & services and give customers lower savings interest rates.

Now, does this imply that they’re at the same levelas a wealth manager? Even if their services seem to be beneficial on paper, they do not have the same level of protection and assurance as a fiduciary wealth advisor. Wealth managers know that affluent investors want to boost their wealth, so they use the appropriate strategies to optimize their portfolio. You can learn about these innovative strategies in our guide, 5 Critical Shifts for Maximizing Portfolio Growth Strategies – For Families Worth $5 Million To $500 Million.

Private banking can often result in hidden costs and transaction fees, taking up more of your money than your anticipated. At Pillar Wealth Management, we work through a fee-only payment model, disclosing any and all charges beforehand.You can take advantage of our fiduciary services by getting in touch with our team.

Do You Need Private Banking?

You can easily apply for private banking services if you have a high net worth or super high net worth. However, is this the right option for you?

As you weigh your options, there are a few things you should consider. For instance, the high turnover rate in retail banks does not guarantee that your private banker or team will remain with you throughout your financial journey. This means you’ll have to re-acquaint new advisors or bankers with your financial situation and challenges each time.

Moreover, private banking services offer you comprehensive financial solutions, but how sure can you be that you’re getting the best service possible? Wealth managers will provide you with just as good, if not better, advice, encouragement, and guidance. In the end, private banks might just end up charging you more for the same services that you can get at a wealth management firm.

If your goal is to invest more than 5 million dollars and enhance your wealth, you need unbiased advice from an expert in the field. For this purpose, you can order our book, 7 Secrets to High Net Worth Investment Management, Estate, Tax, and Financial Planning – For Families With Liquid Investable Portfolios Between $5 Million and $500 Million.

Is Private Banking Reliable?

With so much on the line, it’s understandable to wonder, “Is my money safe in private banks?” You may have heard people express reservations about the security of private banking. They provide enhanced privacy to their wealthy customers, but how can you know you’re getting the best facilities possible?

Be sure to do your own research and background checking into any bank before you choose to work with them. For example, it would make it easier for you to trust them if you were sure that they would not overburden your account with useless investments handled by the bank or its subsidiaries.Smart investment decisions are essential to safeguard your assets. If you want to read more about wealth protection, our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million, is meant for you.

Since private bankers are not fiduciaries, conflicts of interest can arise when cross-sold services and proprietary products are used. If a particular action helps the bank to collect a large fee, they may not completely disclose how it will affect you or your money.

Furthermore, if you take out a loan from the same bank that manages your assets, you expose yourself to several issues. If you are unable to repay the funds, the bank has the option to exert leverage over your dealings.

Why You Should Work with Private Wealth Management Firms Instead

Private banks don’t have too many personalized solutions, which are important for high-net-worth and ultra-high net worth investors. If you use their investment and portfolio management services, for example, they’ll inquire about your risk tolerance and expected returns and offer you tried-and-true fixed investment options, but that’s the extent of it.

Private banking doesn’t account for the individual, unique goals, and aspirations of each investor. Wealth managers prioritize your goals and unique circumstances to create a tailor-made investment plan. They optimize your assets and investments to align with your goals, using strategies that improve your portfolio performance. You can read about this topic in detail in our guide, Improving Portfolio Performance: The Shifts Multi-Millionaires Must Make to Achieve Financial Security and Serenity.

Private banks and wealth management firms are two distinct financial institutions, one of which is more procedural than the other. Wealth management constitutes a strategic relationship that enables you to live your best life, ensuring your financial security and stability. It takes a holistic approach to your finances, covering many aspects that concern you as an affluent individual.

Wealth management gives you the assurance that each aspect of your financial management is being looked after by a fiduciary expert who has extensive experience in dealing with high and ultra-high net worth clients. They offer you services that you simply won’t get through private banking, i.e., risk management, legacy planning, estate tax planning, etc.

Our wealth managers use strategies that help our clients manage their investments, protect their wealth, reach their goals, and achieve financial serenity. You can read about these core strategies by requesting our book,7 Secrets to High Net Worth Investment Management, Estate, Tax, and Financial Planning – For Families With Liquid Investable Portfolios Between $5 Million and $500 Million.

To Conclude

As a high-earner, you likely don’t have the time or inclination to efficiently manage your finances, safeguard your assets, and strive to achieve your financial and life goals. Working with a private bank can raise concerns such as, “Is my money safe in private banks?” or “Am I getting the services I deserve?” Although they are capable of providing professional private banking services, they lack the skills and commitment necessary to develop and implement comprehensive wealth management strategies.

When it comes to the choice between private banking or wealth management, you’re in safer hands with a fiduciary,fee-only, white-glove wealth management firm such as Pillar Wealth Management. We offer our expert financial management services to high net worth and ultra-high-net-worth individuals and families who are looking to invest assets worth 5 million to 500 million dollars. Our seasoned wealth managers are solely focused on assisting clients with large fortunes to achieve their financial objectives.Book a meeting with one of our experts at Pillar Wealth Management to get started on your journey to financial serenity.


To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.

We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.

You see, our goal is to only accept 17 new clients this year. Clients who have from $5 million to $500 million in liquid investable assets to entrust us with on a 100% fee basis. No commissions and no products for sale.

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