Do wealthy people use Vanguard?
Go big. Warren Buffett's Berkshire Hathaway portfolio owns only two ETFs. One of the two is the Vanguard S&P 500 ETF (NYSEMKT: VOO). Buffett even instructed in his will that 90% of the cash his family inherits be invested in a low-cost S&P 500 fund -- and he recommended Vanguard's.
Go big. Warren Buffett's Berkshire Hathaway portfolio owns only two ETFs. One of the two is the Vanguard S&P 500 ETF (NYSEMKT: VOO). Buffett even instructed in his will that 90% of the cash his family inherits be invested in a low-cost S&P 500 fund -- and he recommended Vanguard's.
Some popular platforms among the billionaire community include: 1. Interactive Brokers: Known for its advanced trading tools and low fees, Interactive Brokers is favored by many experienced traders, including billionaires. Its robust features allow for customization and execution of complex trading strategies.
Rank | Asset | Average Proportion of Total Wealth |
---|---|---|
1 | Primary and Secondary Homes | 32% |
2 | Equities | 18% |
3 | Commercial Property | 14% |
4 | Bonds | 12% |
Investors with $1 million to $5 million*
You're a Flagship client at Vanguard, which means you get personalized services reserved for our high-net-worth investors. Helping you look at your wealth holistically is important to us.
It has been reported that the title of "Warren Buffett's broker" goes to John Freund, a Chicago-based Citi banker.
When the market cratered, investors withdrew $16.4 billion from Vanguard's index mutual funds. What accounts for remaining index mutual fund outflows? Johnson says it could be clients pulling out money because they're retiring, or because they're negatively affected by the pandemic.
The wealthier segment of Schwab's client base has seen significant growth in recent years and now represents more than two-thirds of its total retail client assets.
1 firm for millionaires, serving 38% of America's millionaire households, and has 17% overall share of assets for $1 million-plus households. Charles Schwab/TD Ameritrade, Vanguard, Bank of America Merrill, Morgan Stanley/ETrade, and JPMorgan Chase are among other leaders for these wealthy clients.
Moreover, according to a study by Bank of America, millionaires keep 55% of their wealth in stocks, mutual funds, and retirement accounts. Millionaires and billionaires keep their money in different financial and real assets, including stocks, mutual funds, and real estate.
What do 90% of millionaires do?
Real estate investment has long been a cornerstone of financial success, with approximately 90% of millionaires attributing their wealth in part to real estate holdings. In this article, we delve into the reasons why real estate is a preferred vehicle for creating millionaires and how you can leverage its potential.
- People with the top 1% of net worth in the U.S. in 2022 had $10,815,000 in net worth.
- The top 2% had a net worth of $2,472,000.
- The top 5% had $1,030,000.
- The top 10% had $854,900.
- The top 50% had $522,210.
Stocks and Mutual Funds
Many millionaires and billionaires made their money — at least in part — by investing in the stock market, or by owning stock in companies they started or worked for. Stocks can be an effective way to accumulate wealth, but rich people understand that you can also lose money in the stock market.
Visit your My NerdWallet Settings page to see all the writers you're following. The average 401(k) balance at Vanguard was $112,572 in 2022.
Average account balances fell from a record-high of $141,542 at the end of 2021 to around $112,572 last year, while the median balance fell from $35,345 to $27,376, according to Vanguard's How America Saves report for 2023.
Vanguard is basic in functionality and choice, but offers a very good service for less experienced investors and those looking for simple long-term investments – perhaps looking ahead to retirement. Vanguard should be worth considering by savers looking to take a hands–off approach to investing.
The two investments held in Berkshire Hathaway's portfolio that Buffett recommends more than anything else are two S&P 500 index funds. The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO).
Anyone can invest in Berkshire Hathaway if they have enough money to buy at least one Class B share (about $360 in late 2023). For comparison, hedge funds are open only to accredited investors, meaning those with a high income or net worth and who can meet the fund's minimum investment, which can be $1 million or more.
Stock | Number of Shares Owned | Share Count Increase Over Q3 2023 |
---|---|---|
Chevron (NYSE:CVX) | 126,093,326 | 14.4% |
Occidental Petroleum (NYSE:OXY) | 243,715,804 | 8.7% |
Sirius XM Holdings (NASDAQ:SIRI) | 40,243,058 | 315.6% |
Not all are negative, but there are some common complaints: Vanguard hasn't followed Schwab and Fidelity in offering night and weekend phone service; when phone lines are open, callers can spend hours on hold; and it can take weeks of back-and-forth to accomplish simple tasks, such as transferring money.
What is the Vanguard financial controversy?
Vanguard Group was fined and censured by the Financial Industry Regulatory Authority for errors that appeared in more than eight million account statements. Finra, Wall Street's self-regulator, said Vanguard had overstated projected yield and projected annual income for nine money-market funds.
About Vanguard
Vanguard's mission is to "take a stand for all investors, to treat them fairly, and to give them the best chance for investment success."6 It prides itself on its stability, transparency, low costs, and risk management. It is a leader in offering passively managed mutual funds and ETFs.
Wealthy people use many accounts to build wealth, and three are widely available. They use retirement accounts like IRAs and 401(k)s for tax benefits and free money. And they love to buy low-cost index funds in brokerage accounts to build accessible wealth.
"High-net-worth" is defined as having $5 million or more in assets.
Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth. Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.
References
- https://lyonswealth.com/blog-details/how-much-money-do-i-need-to-invest-to-make-3000
- https://jamawealth.com/blog/how-to-choose-the-right-index-fund/
- https://www.quora.com/Is-it-worth-investing-100-dollars-monthly-in-S-P-500-ETF-for-a-long-term-investment
- https://twitter.com/DaveRamsey/status/1740392947818905964
- https://www.nichepursuits.com/how-to-make-5k-a-month/
- https://www.kiplinger.com/investing/vanguard-future-competition-criticism-where-does-it-go
- https://www.schwab.com/ira/roth-ira
- https://www.forbes.com/advisor/investing/best-total-stock-market-index-funds/
- https://smartasset.com/investing/index-funds-vs-stocks
- https://finance.yahoo.com/news/much-interest-earn-1-million-150000229.html
- https://www.trackinsight.com/en/education/how-many-etfs-should-you-own
- https://www.investopedia.com/financial-edge/0812/how-to-live-off-your-dividends.aspx
- https://www.linkedin.com/pulse/what-real-estate-creates-90-millionaires-ben-lovro
- https://www.investopedia.com/articles/personal-finance/022216/put-10000-sp-500-etf-and-wait-20-years.asp
- https://retirement.tips/blog/have-you-heard-about-the-rich-persons-roth/
- https://www.nasdaq.com/articles/the-sp-500-nears-5000-is-now-a-good-time-to-invest-in-stocks
- https://www.thebalancemoney.com/index-funds-wealthy-investors-reject-4142005
- https://www.wsj.com/articles/vanguard-fined-for-misleading-money-market-fund-customers-70fab86b
- https://www.nerdwallet.com/article/investing/what-to-invest-in-during-recession
- https://www.forbes.com/sites/davidrae/2023/11/07/5-steps-to-become-a-roth-ira-millionaire/
- https://advisorservices.schwab.com/why-schwab/specialized-services
- https://www.thebalancemoney.com/index-fund-vs-mutual-fund-for-roth-ira-which-is-better-5270895
- https://groww.in/mutual-funds/other-schemes/index-funds
- https://www.nasdaq.com/articles/is-the-sp-500-all-you-need-to-retire-a-millionaire-12
- https://www.bankrate.com/retirement/best-roth-ira-investments/
- https://www.morningstar.com/stocks/how-invest-like-warren-buffett
- https://www.nasdaq.com/articles/got-%24500-a-month-to-invest-heres-how-the-sp-500-could-make-you-a-millionaire
- https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/index-investing/
- https://fortune.com/recommends/investing/how-much-of-your-income-should-go-toward-investing/
- https://www.gobankingrates.com/investing/strategy/where-do-millionaires-keep-their-money/
- https://www.horizontrust.com/roth-ira-vs-mutual-fund-which-is-best-for-my-retirement/
- https://www.experian.com/blogs/ask-experian/pros-and-cons-of-index-funds/
- https://uk.stockbrokers.com/review/vanguard
- https://portfolioslab.com/tools/stock-comparison/QQQ/VOO
- https://www.snagajob.com/salary-calculator?pay=100000&period=year
- https://www.fool.com/the-ascent/buying-stocks/articles/heres-what-happens-when-you-only-invest-in-sp-500-etfs/
- https://www.nasdaq.com/articles/here-are-the-2-warren-buffett-investments-he-recommends-the-most
- https://www.stash.com/learn/how-to-invest-in-sp500-2/
- https://www.financialsymmetry.com/5-reasons-to-consider-not-only-investing-in-the-sp-500-ep-209/
- https://www.marketwatch.com/picks/this-is-warren-buffetts-first-rule-about-investing-heres-what-to-do-if-your-financial-adviser-breaks-that-rule-01635799738
- https://www.forbes.com/advisor/investing/what-are-index-funds/
- https://fortune.com/2023/07/19/how-much-did-americans-lose-retirement-savings-vanguard/
- https://www.indmoney.com/mutual-funds/best-index-funds
- https://www.barrons.com/articles/why-investors-are-pulling-money-from-vanguards-index-funds-51603390832
- https://time.com/personal-finance/article/best-long-term-investments/
- https://www.cnbc.com/2023/12/15/the-sp-500-is-up-over-23percent-year-to-date-what-to-know-before-investing.html
- https://fundselectorasia.com/10-funds-that-beat-the-sp-500-by-over-20-in-2023/
- https://nomadcapitalist.com/finance/where-rich-people-keep-their-money/
- https://www.britannica.com/money/can-you-have-multiple-roth-iras
- https://www.cnbc.com/2024/01/22/as-sp-500-enters-bull-market-heres-what-to-know-before-you-invest.html
- https://smartasset.com/investing/guaranteed-10-return-on-investment-roi
- https://www.usatoday.com/money/blueprint/investing/best-sp-500-index-funds/
- https://ivypanda.com/essays/warren-buffet-and-his-take-a-chance-theory-where-recklessness-leads/
- https://www.nerdwallet.com/article/investing/how-to-invest-in-index-funds
- https://www.visualcapitalist.com/visualizing-the-investments-of-the-ultra-wealthy/
- https://finance.yahoo.com/news/invested-1000-p-global-decade-133005715.html
- https://www.investmentnews.com/practice-management/news/millionaire-clients-are-less-likely-to-invest-more-with-current-firm-report-reveals-240954
- https://www.linkedin.com/pulse/why-doesnt-everyone-invest-index-funds-one-gayathiri-sri-rangan
- https://www.investors.com/how-to-invest/investors-corner/sell-a-stock-cutting-losses-short-is-first-rule/
- https://www.nasdaq.com/articles/how-much-money-should-you-have-in-the-stock-market-if-youre-75
- https://www.kiplinger.com/personal-finance/605075/are-you-rich
- https://www.investopedia.com/articles/investing/110515/who-are-owners-vanguard-group.asp
- https://www.nasdaq.com/articles/berkshire-hathaway-is-great.-heres-why-you-shouldnt-buy-it.
- https://www.bankrate.com/investing/best-roth-ira/
- https://www.investopedia.com/articles/personal-finance/040315/when-not-open-roth-ira.asp
- https://www.fool.com/investing/2023/12/07/better-buy-berkshire-hathaway-or-vanguard-500-inde/
- https://www.barrons.com/articles/fund-beats-s-p-500-secret-545c8e7e
- https://www.forbes.com/uk/advisor/investing/best-performing-funds/
- https://investmentinsight0.quora.com/Does-it-make-sense-to-invest-in-multiple-index-funds
- https://www.theinvestorspodcast.com/warren-buffett-investment-strategy/module-2/warren-buffetts-4-rules/
- https://www.nasdaq.com/articles/warren-buffett-reveals-how-to-invest-%2410000-if-you-want-to-get-rich
- https://www.quora.com/Which-platform-do-billionaires-use-to-trade-stocks
- https://www.forbes.com/advisor/investing/best-warren-buffett-stocks/
- https://www.newsweek.com/vault/investing/best-performing-mutual-funds/
- https://www.northwesternmutual.com/life-and-money/how-much-should-i-contribute-to-an-ira-and-how-often/
- https://finance.yahoo.com/news/13-stocks-outperform-p-500-165621345.html
- https://www.experian.com/blogs/ask-experian/how-much-income-should-you-invest/
- https://www.composer.trade/learn/what-is-a-90-10-portfolio-strategy
- https://time.com/personal-finance/article/how-to-invest-in-index-funds/
- https://groww.in/blog/why-should-you-invest-in-index-funds-and-top-index-funds-to-consider
- https://www.bankrate.com/retirement/what-is-the-4-percent-rule/
- https://www.financial-planning.com/list/profunds-direxion-rydex-mutual-funds-with-the-best-10-year-returns
- https://www.benzinga.com/general/education/23/03/31504517/if-you-invested-1-000-in-coca-cola-stock-when-warren-buffett-did-heres-how-much-youd-have-now
- https://www.forbes.com/sites/investor-hub/2023/09/19/4-best-index-funds-for-2023/
- https://www.quora.com/Does-Warren-Buffett-use-a-broker-to-invest
- https://www.fool.com/investing/2023/11/30/1-warren-buffett-index-fund-turn-450-into-930000/
- https://finance.yahoo.com/news/rich-heres-americans-think-considered-182847861.html
- https://www.fool.com/investing/2024/03/13/these-are-the-2-warren-buffett-stocks-everyone-sho/
- https://www.usbank.com/investing/financial-perspectives/investing-insights/percentage-of-cash-in-my-portfolio.html
- https://fortune.com/recommends/investing/safe-investments/
- https://www.fool.com/investing/how-to-invest/stocks/how-to-invest-in-berkshire-hathaway-stock/
- https://www.nasdaq.com/articles/5-vanguard-etfs-that-could-be-millionaire-makers
- https://www.usatoday.com/money/blueprint/retirement/best-investments-for-roth-ira/
- https://www.stash.com/learn/how-much-should-i-be-investing/
- https://www.etmoney.com/learn/stocks/nasdaq-100-versus-sp-500-which-index-is-better-for-investing-in-the-us/
- https://www.quora.com/Is-it-practical-to-put-all-of-my-savings-into-index-funds-because-they-have-high-returns
- https://www.investopedia.com/articles/investing/062714/100-minus-your-age-outdated.asp
- https://www.etmoney.com/blog/how-long-can-we-invest-in-index-funds/
- https://www.fool.com/investing/general/2013/09/21/the-best-performing-stock-on-the-sp-500-since-1980.aspx
- https://medium.com/@FundFinesse/index-funds-vs-roth-ira-making-the-right-choice-for-retirement-a73b8c15e844
- https://finance.yahoo.com/news/billionaires-cant-enough-etf-2024-075900755.html
- https://www.markercontent.com/articles/lifestyle/the-7030-rule-of-investing-and-managing-money-229413
- https://www.nerdwallet.com/article/investing/the-average-401k-balance-by-age
- https://www.fool.com/investing/2024/01/06/warren-buffett-index-fund-could-turn-400-to-847800/
- https://investor.vanguard.com/client-benefits/flagship
- https://www.sarwa.co/blog/invest-sp-500
- https://www.nerdwallet.com/article/investing/average-stock-market-return
- https://www.fool.com/investing/how-to-invest/index-funds/
- https://www.newyorklife.com/articles/index-fund-vs-mutual-fund
- https://blog.wisesheets.io/what-can-i-do-with-2000-dollars-a-starters-guide-2023/
- https://www.investopedia.com/nasdaq-vs-sp500-vs-dow-5213252
- https://www.fool.com/investing/how-to-invest/famous-investors/warren-buffett-investments/stocks-owned/
- https://www.nerdwallet.com/article/investing/best-ways-to-invest-5000
- https://www.investmentnews.com/industry-news/news/schwab-sharpens-focus-on-distinct-needs-of-wealthiest-client-groups-239698
- https://www.franklintempleton.com/planning-and-learning/learn-about-investing/investing-principles/cost-of-timing-the-market
- https://www.marca.com/en/lifestyle/us-news/personal-finance/2023/06/18/648eb65322601dcf4f8b460e.html
- https://www.nasdaq.com/articles/warren-buffetts-biggest-investment-holding-for-berkshire-hathaway-isnt-apple-its-this
- https://finance.yahoo.com/news/more-money-investing-10-000-220010726.html
- https://www.nasdaq.com/articles/do-this-for-$4000-in-dividend-income-every-month
- https://news.bloombergtax.com/tax-insights-and-commentary/roth-iras-have-transformed-into-big-tax-shelters-for-the-wealthy
- https://www.linkedin.com/pulse/7-investing-principles-warren-buffett-topsy-turvy-times-andy-wang
- https://finance.yahoo.com/news/genius-ways-1-000-month-105500970.html
- https://www.businessinsider.com/personal-finance/bank-accounts-rich-people-use-available-to-anyone-2021-7
- https://www.fool.com/investing/2023/12/13/is-it-too-late-to-invest-in-the-sp-500/
- https://www.thebalancemoney.com/roth-ira-vs-index-fund-what-s-the-difference-5221117
- https://time.com/personal-finance/article/best-index-funds/
- https://www.investopedia.com/ask/answers/102714/can-i-buy-etfs-my-roth-ira.asp
- https://www.investopedia.com/ask/answers/06/canindexfundsgounder.asp
- https://www.investopedia.com/articles/personal-finance/110614/most-common-roth-ira-investments.asp
- https://www.fool.com/investing/how-to-invest/index-funds/safest-index-funds/