@thequestionistgirl My brother is rich and does the following:
He has got a private bank (fee 0.8%) that manages his wealth:
He keeps 200-300k in cash/cash équivalent for his "mental health". From this cash he gets 10k a month on his bank account to live
The other millions the bank invests in different strategies (all etf based). Some of these strategies are 100% equities others 40/60,..
The bank keeps fueling his 200-300k cash requirement for "living" (yearly 120k)
When markets go down his cash melts down since the bank avoids selling when markets go down.
The 200-300k allow him to live up to 3 years without touching the strategies.
Thus far all strategies recovered (strongly) within 2-3 years after "major downturns".
He will consume his wealth but bank told him.that kids will still inherit a lot...
I dont have détails on the strategies but it's all etf mixing bonds/equities mainly.
On top he owns a couple of houses with minor rent income and he is having a larger amount in a PE, where you dont see theomey for 5-6 years and returns are uncertain.