Can I Put Gold in My IRA?
Liquidity
Liquidity refers to the ability to quickly convert financial resources into cash, an essential skill for meeting unexpected expenses and building financial resilience.
Liquidity can be defined in numerous ways, but its most basic definition relates to how easily assets can be sold and converted into actual cash. When applied to personal finances, this includes checking and savings accounts, money market funds, stocks, bonds and mutual funds – which all have cash available – along with tangible assets like real estate which require time, effort and cost for sale.
Have you heard the term, “asset rich, cash poor?” This refers to someone with many assets but little cash readily available. That is due to tapping retirement accounts often coming with significant penalties and taxes attached; thus it is vitally important that individuals build an emergency savings fund that covers six months’ expenses as a way around this problem.
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