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      • A liquidity risk is related with your ability to ensure the availability of funds to meet your short term needs. An example of such a risk is when you invest a large sum of money to meet your long term obligations without having the liquidity needed to meet your immediate needs.
      www.rrq.gouv.qc.ca/en/planification/reflexions/Pages/liquidity-risk.aspx
  1. Jul 11, 2023 · What Is Liquidity Risk? Liquidity risk refers to the risk of not being able to buy or sell an asset quickly enough to prevent a loss or to meet financial obligations.

  2. Aug 22, 2024 · Liquidity risk refers to the marketability of an investment and whether it can be bought or sold quickly enough to meet debt obligations and prevent or minimize a loss.

    • Will Kenton
  3. Apr 26, 2022 · What is liquidity risk? If an asset is referred to as liquid, then that means it can be quickly converted into cash. So, when liquidity risk is discussed during retirement planning, it’s referring to whether or not your portfolio is made up of these easily-accessible assets.

  4. Nov 27, 2014 · Therefore, a mature plan with more retirees than active members may be facing higher liquidity risk, which could be demonstrated by a negative cash flow in the pension fund: payments to...

    • Jonathan Jacob
  5. However, the solutions available in retirement, to compensate for not having enough income for example, are much more limited. What are the main financial risks? Longevity risk; Inflation risk; Rate-of return risk; Liquidity risk; Managing risks. Your ability to manage these different risks will depend on 3 elements: Financial planning of your ...

  6. During your retirement, the risk related to liquidity is closely linked to your retirement savings withdrawal strategy. That risk becomes particularly relevant if you are counting on an illiquid asset, such as your house, to plan your retirement income or if you outlive your personal savings.

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  8. Apr 22, 2021 · Liquidity risk is the risk of companies and individuals not meeting their short-term financial obligations, specifically because they’re unable to convert assets into cash without incurring a loss. Why Is Liquidity Risk Important?

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