The Price of Business Digital Network has a new series of outstanding commentaries from thought leaders. This is one in that series.
Lane Kawaoka an real estate owner of over 2.1B of assets and 10,000 rental units found at simplepassivecashflow.com, focuses on educating accredited and wealthy investors about alternative investing and financial ideas. While traditional financial literacy emphasizes the importance of an emergency fund, Lane argues that high-net-worth investors require an “emergency fund 2.0.” Rather than maintaining a large emergency savings account, Lane encourages investors to minimize their emergency fund and allocate the rest of their funds to various investments such as real estate syndications, private placements, rental properties, or the stock market. Lane also suggests semi-liquid investments, like private funds or the S&P 500 index, as a middle ground for emergency funds. Additionally, Lane promotes the use of whole life insurance for liquidity and tax-free returns.
LISTEN TO THE INTERVIEW IN ITS ENTIRETY HERE: