Seems to me that what really matters is consumption. Wealth is potential consumption, and if that wealth is tied up in illiquid assets, that potential could be quite difficult to realize. Income feeds wealth. Who cares about a low income if you have a large nest egg to draw on? What most likely matters to most people is what they can acq…
Seems to me that what really matters is consumption. Wealth is potential consumption, and if that wealth is tied up in illiquid assets, that potential could be quite difficult to realize. Income feeds wealth. Who cares about a low income if you have a large nest egg to draw on? What most likely matters to most people is what they can acquire and their confidence of being able to do so in the future.
Seems to me that what really matters is consumption. Wealth is potential consumption, and if that wealth is tied up in illiquid assets, that potential could be quite difficult to realize. Income feeds wealth. Who cares about a low income if you have a large nest egg to draw on? What most likely matters to most people is what they can acquire and their confidence of being able to do so in the future.
It might improve your comment to replace “acquire” in your last sentence with “consume”.
Maybe so. Read it as consume and see what you think.