Rich on Paper, Tight on Cash Flow: The Hidden Cost of Dead Equity | Ep. 230

Описание: It’s one thing to have a healthy balance sheet. It’s another thing entirely to feel like you can actually use your money. In this episode, Christian and Rod unpack what it means to be “rich on paper, tight on cash flow” and why so many high-income earners quietly feel like they’re living paycheck to paycheck despite impressive incomes and net worth.

They introduce the idea of dead equity—wealth that boosts your net worth but quietly strangles your flexibility and options. From home equity you can’t touch, to overstuffed retirement plans, to illiquid businesses that were supposed to be the “big exit,” they break down how traditional “play it safe” advice can unintentionally back you into a corner.

Then they flip the script. Christian and Rod walk through practical ways to turn dead equity into opportunity fuel—building an opportunity fund, using lines of credit wisely, and prioritizing liquidity and optionality before you max out every tax-deferred bucket. Along the way, they contrast typical guru advice with what they’ve actually seen work for thousands of real investors over the last 15–20 years.

If you’ve ever looked great on paper but felt pressure in your day-to-day cash flow, this conversation will help you rethink “safety,” reframe net worth, and start designing a financial world that’s both solid and flexible.

Key Takeaways:

• What “dead equity” really is—and why it’s more about rigidity than bad investments

• How home equity, 401(k)s, IRAs, and illiquid businesses can quietly trap your wealth

• Why traditional “max out everything and pay off everything” advice often backfires for high-income earners

• The difference between net worth and usable net worth (and how to test yourself)

• How high cash value life insurance and lines of credit can create liquidity, optionality, and “opportunity fuel”

• A simple reframe: fund flexibility and optionality first, then lock money up on purpose

Money Insights is a strategic planning firm that is founded on the principle that "off-the-shelf" products and solutions often do not meet the needs of high-income earners. The Money Insights team works to collaboratively design customized financial solutions that will leave a lasting impact on each of their unique clients. Visit Money Insights and take the Investor Quiz at https://moneyinsightsgroup.com! Listen to the Money Insights podcast on Spotify, Apple Podcasts, or at https://moneyinsightsgroup.com/podcast/