Owning 10M vs Having Unlimited 10M Spending Power Are Two Different Things

One person said that having 10 million in assets and being able to swipe 10 million in liquid funds from your account at any time are two completely different things.

When he says he has 10 million, he’s referring to the market value of his apartment — but in reality, his checking account might hold less than 100,000.

If your checking account always holds 10 million in liquid funds, what does that mean? It means an annual funding cost of at least 500,000.

Put 10 million in a checking account and do nothing, and you’ll lose at least 500,000 every year. Can you afford that?