How to Incorporate Liquidity into an Investment Plan
As the owner of the financial services firm, A Better Financial Plan, Dean Vagnozzi has delivered hundreds of informative workshops covering essential personal finance advice to reduce risks in investments. Dean Vagnozzi has shared his expertise on multiple media platforms. In a 2019 article interview published in Dink Finance blog, he emphasized the importance of liquid assets and investments.
The liquidity of an asset depends on how easy it is to access and sell in exchange for cash. This can be based on the size of the market or how many steps are required to trade the asset. For example, an art piece by a popular artist would be fairly liquid. On the other hand, it may take time to find a buyer for a large expensive home, so its liquidity is limited. Some financial experts advise keeping a portion of an investment portfolio in high-yield savings or money market account to ensure access to cash in case of financial emergency.
The liquidity of an asset depends on how easy it is to access and sell in exchange for cash. This can be based on the size of the market or how many steps are required to trade the asset. For example, an art piece by a popular artist would be fairly liquid. On the other hand, it may take time to find a buyer for a large expensive home, so its liquidity is limited. Some financial experts advise keeping a portion of an investment portfolio in high-yield savings or money market account to ensure access to cash in case of financial emergency.
