This Week in Beyond Wealth
How much HNW households keep in cash, by net worth.
4 ways to structure giving, from DAFs to charitable trusts.
Private placement life insurance: how it works and who it’s for.
Money & Markets
How much cash do high-earning households typically hold?
We asked 165 HNW households to share their bank balances across cash management and transactional accounts. The results in the chart below can be used as rough peer benchmarks by net worth tier.
Unsurprisingly, the amount held in cash rises with net worth. The real takeaway is how significant the jump is once someone reaches $10M in wealth.
Total cash (savings + checking) for the $10M–$25M wealth tier tops $400K, roughly double that of lower net worth brackets. After $25M, the amount in cash levels off.
For cash management, that money mostly sits in brokerage accounts. Fidelity and Schwab hold the largest market share, at 28% and 27% of respondents. They’re also the most highly rated, as 9 in 10 customers said they would recommend them for cash management.
Traditional banks like Chase, Bank of America, and Wells Fargo on the other hand, are both less used and less recommended for saving and storing cash.
Life, Health, & Family
Is there a smarter way to give to charity?
Most households give when something prompts them, without a rule behind it. While there's nothing wrong with ad hoc giving, many want a more structured approach as their wealth grows and they give more.
Here are some common frameworks and considerations that can guide high-net-worth families in setting a charitable giving budget:
Percentage-based giving: a fixed share of after-tax income or net worth each year, with 10% often cited as a good benchmark.
Donor-advised funds: contributing to a managed fund and allocating grants for philanthropy over time. Donors receive an immediate tax deduction.
Charitable trusts: structured options that integrate philanthropic goals with estate planning. Assets appreciate within the trust, benefiting both the donor and recipient.
Cap-based inheritance: a cap on family inheritance, directing any amount exceeding the cap toward charitable causes.
The first step when incorporating charitable giving is determining how much to allocate based on disposable income. Then, choose the allocation strategy that fits best.
Private Market Perspectives
What is private placement life insurance?
Private placement life insurance (PPLI) is a variable universal life policy that can hold institutional investment strategies. Returns within the policy compound without annual income tax.
PPLI fits investors with a large, permanent allocation to tax-inefficient ordinary-income assets like private credit and multi-strategy hedge funds, and a horizon long enough to earn back the setup cost. If you only hold index funds, PPLI isn’t right for you.
PPLI delivers four distinct tax benefits. Two are available during life, and two at death.
Other important characteristics of PPLI include:
The policyholder cannot choose or direct the holdings, only the carrier or the manager it appoints.
Federal rules cap any one position at 55% of the account and any four positions at 90%.
You can take money out of a policy while you’re alive in three ways: withdrawing to basis, borrowing against the cash value, or pledging the policy to a third-party lender.
There is no legal minimum, but the market sets one (reported around $5 million of premium). That said, economics improve materially with scale and negotiated access.
Around Long Angle
How we’re different from other private peer groups
If you're looking for a private peer group, you have a few options. Here’s a quick breakdown and where Long Angle fits:
TIGER 21: ultra high-net-worth peer advisory.
Vistage: structured coaching for active operating leaders.
Hampton: peer community for founders of high-growth companies.
Entrepreneurs' Organization (EO): community of entrepreneurs and business owners.
YPO: community for chief executives under 45.
These run roughly $5K to $35K a year in membership fees, plus initiation fees and/or chapter dues.
Long Angle takes a different approach. We’re a private, vetted community of over 9,000 high-net-worth individuals, focused on wealth optimization instead of business building. We’re more inclusive, have $0 membership fees, and no attendance requirements.
The value of peer intelligence is, of course, still core. Every day, Long Angle members compare notes on sophisticated wealth strategies and complex life decisions.
See if our community is right for you. It takes five minutes to apply.
Published by:
Chris Bendtsen
Insights Lead, Long Angle
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This material is for informational purposes only and is not investment advice regarding any security or investment strategy. Long Angle does not provide legal or tax advice, consult your attorney, CPA, or tax professional regarding your situation.
Long Angle Management, LLC (Long Angle), is an SEC registered investment adviser firm. Registration does not imply a certain level of skill or endorsement. Investing involves risk, including potential loss of principal. Past performance is not indicative of future results.