How The 'Old Money' Elite Preserve Their Wealth

The old money elite, as they are often referred to, have managed to preserve and even grow their wealth over centuries, through wars, economic crises, and social upheavals.

In this age of short-term thinking and rapid change, the old money elite’s ability to sustain their wealth is nothing short of remarkable.

But how do they do it? What are the secrets that allow them to maintain and grow their fortunes?

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TIMESTAMPS:
0:00 Introduction
0:49 1. Establishing a Strong Financial Foundation
3:10 2. Real Estate As Wealth Preservation
5:30 3. Private Banking and Wealth Management Services
6:38 4. Education and Networking
7:37 5. Philanthropy and Social Influence
9:15 6. Trusts and Family Offices

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First and foremost, the old money elite are committed to long-term wealth preservation over short-term gains. They understand that fortune is fickle and that a single-minded focus on immediate profits can lead to the eventual erosion of their wealth.

To safeguard their financial foundation, they diversify their investments across a range of asset classes, such as stocks, bonds, real estate, and commodities. By spreading their wealth across multiple investments, they reduce the risk of losing it all in a single stroke of misfortune.

For example, The Rockefeller family, one of the most iconic examples of old money wealth in America, has successfully diversified their wealth across multiple asset classes for generations. The following examples demonstrate their approach to wealth preservation and growth:

The Rockefeller family has consistently held significant positions in blue-chip stocks and bonds, such as those of ExxonMobil, the successor of Standard Oil, John D. Rockefeller’s original company.

By investing in well-established corporations with a history of stable returns, the family has maintained a steady income and capitalized on the growth of these companies over time.

Additionally, quite naturally they hold positions in commodities and natural resources. The family’s wealth originally stemmed from the oil industry, and they have continued to invest in natural resources over the years. This includes investments in timber, mining, and agriculture, which provide not only financial returns but also act as a hedge against inflation.

Lastly, venture capital and private equity. The Rockefeller family has diversified its wealth by investing in various venture capital and private equity funds, which offer exposure to innovative companies and industries. For example, the family’s investment arm, Venrock, has been involved in financing successful companies like Apple and Intel, allowing the family to capitalize on the growth of these businesses.

Much like The Rockefellers, most members of the old money elite often invest in tried and tested industries that have stood the test of time.

They prefer to put their capital in businesses with stable and predictable returns rather than chasing after the latest investment fad or speculative venture. By concentrating on reliable investments, they can ensure a steady stream of income that helps preserve their wealth.

Indeed, real estate has long been a favored asset class for the old money elite. It offers several benefits that make it an ideal wealth preservation tool.

For one, they often own and manage multi-generational properties that have been in their families for centuries. These properties not only provide a source of income but also serve as a tangible symbol of their wealth and social standing.

One of the most famous multi-generational properties owned by the DuPont family,one of the oldest and wealthiest “old money” families in America is the Winterthur estate in Delaware, which was built by Henry Francis du Pont in the early 20th century.

This 1,000-acre estate, which includes a 175-room mansion, has served not only as a family residence but also as a museum, showcasing the family’s extensive collection of American decorative arts. Winterthur has provided the DuPont family with both a source of income and a testament to their wealth and influence.

[oldmoneyluxury]

Have you personally used any of these “old money” strategies in your life?

[cezargarcia]

The best idea to great wealth is own a bank, keep people's money and use them for your benefit. That's exactly the formula used by these wealthy people. Everything else is easy to venture with if you have endless resources. Only owning a bank that can create money endlessly can do that...like the Federal Reserve.

[magnumopus]

This was a masterpiece. We don't learn to be wealthy in school which goes beyond a dollar figure. We just learn how get a job. Even if you don't become rich the average person can become wealthier just by becoming aware of some of the principles of wealth. Thank you!

[sbella]

Old money is about passing along a wealth mindset. New money is about passing along a consumer mindset

[crazyworld]

Yes. Education, networking, and tax avoidance.

[sunnindawg]

For normal people: buy real estate, backdoor Roth, setup a trust to protect it, avoid taxes.

[JLW]

1:26 Rockefeller
4:07
6:11 Goldman Sachs
7:59 Whitney Family
9:26 Astor Family
11:29 Ford

[casinosbroker]

00:00 💼 Old money elite sustain wealth through generations by adhering to specific strategies.
00:42 📊 Diversify investments across asset classes for long-term wealth preservation.
02:07 🏢 Invest in stable, tried-and-tested industries for reliable returns.
03:15 🏰 Real estate, owned for generations, symbolizes wealth and offers stability.
05:15 🏦 Utilize private banking for tailored financial management.
06:50 🎓 Elite education and networking strengthen connections and influence.
07:46 🤝 Philanthropy enhances reputation, social standing, and tax benefits.
09:22 🏛 Trusts, family offices, and wealth transfer strategies ensure intergenerational preservation.
10:55 🗳 Political influence and lobbying shape economic and legal landscapes.

[AfrikanLifestyle]

You didn't touch on the wars, economic crises and social upheavals very much....I like the fact that you mentioned the political aspect of engaging in policy making to shape the economic and legal landscape their advantage. Which means it is at the disadvantage of others...That surely helps to preserve "old money"...

[kaspar_]

the trust is the foundation from which everything is worked, the beneficiaries simply get a check. this is the way my humble family has worked since before 1720.

[lkearney]

It's an affront that any family cannot simply pass on wealth, without the already taxed money being taxed again, unless there are relatively complicated (and unknown to most people), arrangements put in place. It's as if it's intended that these tax minimizing arrangements are deliberately obscured.

[joanclayton]

I remember on an episode of Frasier where Niles learns that his soon to be ex-wife’s families’ fortune actually came from selling toilet seats. It had made them a fortune. I’m thinking it’s the same with these families. They just have less prestigious businesses funding them and they keep it secret.

[LadyGabriela-.]

Multiple sources of income. I am focusing on network now that I don’t work like middle class. Just focusing on good decisions and stating away from low class men and low class women. Recreating your circle is very difficult but very worthwhile.

[luxnado]

This video’s narrator is perfect for your content! Keep up the great work.

[kayallen]

Trust funds that overlap. Diversity and ownership. But properties require upkeep - often becoming a drain.

[photograph]

You know easy part becoming a high worth individual but hard part is stay there.

[owengreene]

My Granny advised me in 1968, to open a sweetshop where we lived. I said, "Granny, I'm only 12."
"That's nider here or there, " she answered harshly. "think of the money ud'e make."

[algazzi]

The main reason is that they live in a patriarchal system and have large families. The wealth stays and grows from one generation to another in the same family, marriages are business and not a disney fairy tale. Everything society teaches the poor to hate, the rich people embrace and evolve.

[cedricsmith]

Wow, no I have never used any of these old money strategies, I never knew of them.

[MoivinSulunker]

The museum not only bolsters the family's reputation, ... but also highlights ITS commitment.