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Monday, 2 April 2012

Asset Rich. Cash-flow Rich

Just For Thinking ....

Read? Understanding Asset and Liability (3)

A. You have an asset worth only $500K but it will generate 10% cash flow or passive income i.e. $50K

B. You have nice asset worth $1M but no cash flow from it.

A or B will make you feel richer and can buy drinks for your friends at gathering without feeling the pain in the pocket.

Like A or B?


  1. A will reach B in due time if B doesnt do anything about it.

    1. It all depends. A has money to spend because of the cash flow but if B has other means then the 1M asset may turn into 10 millions or more in due time. i talking about free hold real estate for example.

    2. I'll take B any day.

      Sell B and invest in A ;)

      Today it's known. Tomorrow who knows?

      I've only O' level maths; but where got 1 million don't take choose 1/2 million one?


      P.S. This is something I picked up from Coconut. Keep things simple!

  2. B sounded like many in Singapore. Asset rich and cash poor.

    Need to feed myself leh. Therefore, I still liked A very much.

    Use the cash from A to build a cash flow producing B.

  3. If can only choose either one (not both!). I must agree with cw888 the one who can generate $50k with his asset will feel richer. Cash in hand is better than bird in hand.. I mean..bush in hand.. uh... also dont sound right.. but ya.. i'm a guy..i prefer holding the bush..

  4. i choice B, cos i can trade my asset and have capital gain. thats my income or cash flow, provided i can also short the asset.

    i go from short (2M cash) to nutural (1m cash) to long (0 cash). and back again.

    right now i begain to like A as well, cos it does gives good income and very little work needed.

    i want both!

    1. Ha! Ha!
      coconut of course! The best of both worlds. That's where if you practise Assets Allocation correctly, you can have both. You always very smart one. Always very cheem.

    2. thks temp, but don't envy, i have a great flaw - lazy (only eat when food got into my mouth haha).

  5. Common sense


    Choose B....stupid to give up $500,000

    Singapore property is liquid. Not some 100 000 hectare of land in Thailand that needs to wait 30 years for people to buy.

    SG property can be sold, or mortage to bank easily for cash flow!!!!


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