You'd be amazed how many wealthy people that say they're rich do not have liquidity. Liquidity is defined by the ability at any moment to have liquid cash. You're not rich if it's all tied up in real estate. You're not rich if it's in jewelry and in cars and in boats and all that stuff. Sure. It's very hard to get 5 million liquid because in this market, that makes you $250,000 a year pre-tax. You have a family of four and poo-poo hits the fan in your world and everybody loses their job, you can sustain a family of $250k pre-tax. That's why it's the magic number.
You'd be amazed how many wealthy people that say they're rich do not have liquidity. Liquidity is defined by the ability at any moment to have liquid cash. You're not rich if it's all tied up in real estate. You're not rich if it's in jewelry and in cars and in boats and all that stuff. Sure. It's very hard to get 5 million liquid because in this market, that makes you $250,000 a year pre-tax. You have a family of four and poo-poo hits the fan in your world and everybody loses their job, you can sustain a family of $250k pre-tax. That's why it's the magic number. ♬ original sound - Mr. Wonderful
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