Given the large increases seen in property values in recent decades, combined with more and more of us living well into our 90s, the problem of being asset rich and cash poor is becoming increasingly common.
Another way to frame this problem is something an old neighbour said to me once, “Paul, you can’t eat bricks”.
It’s great to be financially secure and have significant assets behind you, but you need cash flow to pay the bills and put food on the table. That’s easy enough whilst you are working, but once you retired you either need your assets to be throwing off income, or else liquidated to be available for spending.
In this week’s episode we’re going to look at a few ways that you, or perhaps an older family member you care for, might be able to solve the problem of being asset rich but cash poor.