Kevin O'Leary: You’re not wealthy unless you own $5 million in liquid assets that can be quickly converted to cash when needed

You might have a row of real estate, a fleet of Bugatti cars, and a closet full of Birkin bags.. yet you may not truly be rich. This is the view of the famous investor Kevin O'Leary

Why don’t luxury possessions mean you’re rich?
Shark Tank star says: “You’re not rich if all your wealth is tied up in real estate, jewelry, cars, or boats.” And he stresses that true wealth lies in owning liquid assets that can be quickly converted into cash when needed.

O'Leary points out that the “magic number” is owning $5 million in liquid assets, explaining: “This amount can produce an annual return of about 5%, or roughly $250,000 before taxes—enough to support a family if circumstances worsen.”

He adds: “This money isn’t for spending, but to ensure your financial freedom and your family’s freedom for life.” That’s why he personally keeps this minimum in U.S. Treasury bills, considering them among the safest and most liquid assets.

The legendary investor Warren Buffett doesn’t disagree with him, emphasizing the importance of liquidity by saying: “Keeping a large amount of cash makes us sleep soundly and gives us the ability to seize opportunities during times of crisis...
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