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Edelweiss' Radhika Gupta on 1 risk India's senior citizens should not ignore: ‘Far more problematic…’
Stressing on the need for seniors to prioritize liquidity as they age, Radhika Gupta said, “We talk of more debt and less equity risk for senior citizens.”
The biggest challenge for senior citizens with property assets is to convert these into liquidity, Edelweiss CEO Radhika Gupta said. Pointing to three common scenarios that hinder this process, she said in a post on X (formerly Twitter), “Three cases known to me where senior citizens have property assets, need liquidity and are not able to get it because in different cases: 1. Tenant won’t vacate the house 2. Property market is not conducive to a sale at this time 3. Transaction will be all or largely cash."
Stressing on the need for seniors to prioritize liquidity as they age, she said, "We talk of more debt and less equity risk for senior citizens. But illiquidity risk is far more problematic. As you get older, get more liquid."
Several social media users appreciated Radhika Gupta's view with one saying, "similar story for us. luckily my parents have better liquidity + I fortunately did well , so we don't have liquidity problems but flat liquidity ain't a trivial problem, it's a real risk."
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Another commented, "I guess, Liquidity is important irrespective of the age! Of course, with no active source of income post 60+ age, it becomes a necessity to survive!"
A third remarked, “Couldn't agree more. On top of this, finding a buyer, getting the legal sale documents prepared, going to registrar office for sale..all these hassles are not worth it if it is only kept for investment purpose. liquidity of MFs is underrated.”
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Agreeing with Radhika Gupta, a fourth user said, “Cash flow management is such an important aspect of Financial Planning! I hear people talk of randomly investing in an asset class without factoring in how it affects their overall financial plan.”
