Liquid assets are accounts that a consumer can easily access within a specific time.
Each of you want to make sure that you have an account or two where funds are easily accessed.
The loose change and single dollars that you overlook can add up to a secure emergency cushion. Purchase a large container for your home and/or office to deposit your monies. You will notice how quickly it accumulates.
A safe deposit box isn’t only for important papers. There are many customers who like the convenience and privacy of walking in and out the bank, going into the safe deposit room and taking their time counting every dollar. Although, the monies are located at the bank it doesn’t earn interest in your box.
If you’re like a lot of people then you’re probably wondering about checking, savings, money markets and certificate of deposits (CD). Guess no longer…you can also use these type of accounts as a form of liquid assets.
Although certificate of deposits are mentioned, you don’t want to tie up your money for an extended amount of time. Remember, if you are seeking to maximize your interest during a short period of time then you will want to consider a 30 days term (CD). This will allow your certificate of deposit to renew every 30 days if it remains at the financial institute.
If you’ve drained all your resources and are still in need of quick cash you can consider an annuity. However, an annuity is suggested for long-term investments not for quick cash. Depending on your annuity, you may be able to withdraw 10% free cash annually without penalty.
So, there you have it. There’s no reason for you to take out a loan from a retirement account or attempt to apply for a home equity line of credit. When you prepare your buckets of retirement as you are coached…liquid, savings, retirement and tax. You will be able to make prudent decisions that won’t negatively impact your future.
“Love yourself enough to support yourself.”
Property of SMG, LLC
Reported by Bahiyah Shabazz, MBA