If you flip through channels and see television programs that try to stereotype and chronicle the daily life of the wealthy, the focus will likely be on the assets that do not generate cash flow, and are generally illiquid. You see the wine collections, chilling in a specially created basement room that functions as a private lair. You see the fancy schmancy art purchased at auctions through Sotheby’s lining the hallway walls. You see the autographs of Joe Dimaggio, Paul McCartney and other assorted Beatles, and maybe a letter signed by President Kennedy somewhere in there.
The problem with these depictions is that they create the illusion that the wealth-building process is about art, collectibles, gold, rare wins, and other items that do not generate cash flow for their owners until the goods get sold. It corrupts the story of wealth-building by suggesting that it is wise to take money … Read the rest of this article!