"“You'd be amazed, how many wealthy people that say they're rich do not have liquidity,” O'Leary said on Fox Business."
"O'Leary said he practices what he preaches, keeping at least $5 million of his own wealth in Treasury bills- short-term U.S. government securities that can be quickly converted to cash. The Canadian businessman argues that true financial security means being able to access your wealth at a moment's notice, be it to weather an emergency or to seize an investment opportunity."
"“It's very hard to get five million liquid because in this market that makes you $250,000 a year pretax,” he said. “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 on 250 pretax. That's why it's the magic number.”"
"“That is not what it's for,” O'Leary continued. “It's there to guarantee your financial freedom and that of your family for the rest of your life.”"
True financial security depends on liquidity, meaning wealth that can be converted to cash quickly. A $5 million minimum in liquid assets is presented as a “magic number” for sustaining a family during major disruptions and enabling investment moves. Treasury bills are cited as an example of liquid holdings because they can be converted to cash rapidly. Illiquid assets such as houses, private businesses, or other holdings may appear valuable on paper but do not provide immediate access. Financial experts support higher liquidity ratios as better protection during emergencies and better positioning to capitalize on opportunities. The guidance also emphasizes not spending or lending the liquid funds, reserving them for long-term financial freedom.
Read at Fast Company
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