Why Liquid Assets Matter: Find Out Now!
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Liquid assets are cash equivalents that can be converted into cash quickly at a low risk of loss in value.
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The often-mentioned quote, “Cash is King,” reflects the reality that cash is a more valuable resource than other convertible assets that differ in their ability to provide liquidity.
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Having liquidity is valuable for opportunities when markets fall, and you can take advantage of market turbulence.
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Your liquid assets should account for about 5% to 20% of your total assets, giving you financial flexibility.
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Market liquidity refers to the ease of selling financial securities at relatively efficient prices in their respective public markets.
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Liquid assets are a portion of your assets that can convert quickly into cash and provide a household with flexibility and financial security.
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You’ll sleep better at night when you can pay your bills, even when there is high inflation or a recession.
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