Asset Rich Vs Cash Rich

Dr Bhagwati Prasad Sharma, an ophthalmologist, lives with his wife Seema and son Abhishek. He has spent most of his life happily without any goal or profound objective in financial planning. However, both his vision and ideas were realigned in 2006 when he met Prateek Pitalia of Mudra Consultancy. During initial rounds of discussion, Dr Sharma revealed that, like most traditional savers, the majority of his investments were in real estate, with around 90 per cent net worth locked in physical assets. He admitted that emotions and peer pressure often clouded his decisions. He focused more on the news of potential appreciation while investing in property. However, liquidity often emerged as the most significant concern as converting a large-ticket property into cash to fund financial goals took time. The remaining part of his portfolio was ad hoc and without many objectives. His bank...