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Apr 21, 2016 · If you’re retired or getting close to retirement, here are some key steps to take as you assess the liquidity component of your portfolio.
Sep 23, 2024 · Should you have cash in your portfolio? It depends. Many investors don’t need to load up on cash if they’re saving for long-term goals, but cash plays a critical role for retirees and other...
Jul 18, 2024 · Understanding liquidity's role in your investment portfolio is key to developing your investment strategy. Here's the importance of liquid assets in financial planning and the role of liquid...
- Henry Blodget
Nov 28, 2023 · Even certificates of deposit (CDs) and I bonds could be considered liquid, slightly less liquid than a checking or savings account, but fairly easily accessible. Assets like mutual funds, stocks and bonds are considered quite liquid because of how quickly they can be sold for their current value.
- Cash and Cash Equivalents
- Marketable Securities
- Exchange-Traded Funds
- Stocks
Savings Accounts
Savings accounts are among the most liquid investments available. They typically offer a modest interest rate and are insured by the Federal Deposit Insurance Corporation (FDIC)up to a certain limit, making them a safe option for storing cash.
Money Market Accounts
Money market accountsare similar to savings accounts but typically offer slightly higher interest rates. These accounts invest in short-term, low-risk securities and are also insured by the FDIC up to a certain limit.
Certificates of Deposit
Certificates of Deposit (CDs) are time deposits that pay a fixed interest rate over a specified term. While less liquid than savings and money market accounts due to early withdrawal penalties, they can still be considered relatively liquid investments if the term is short.
Treasury Bills
Treasury bills are short-term debt securitiesissued by the U.S. government. They are considered low-risk investments due to their backing by the federal government and offer a modest return.
Commercial Paper
Commercial paper is a short-term debt instrument issued by corporations to finance their short-term obligations. These investments are typically low-risk but may be subject to credit risk depending on the issuer's financial stability.
Short-term Municipal Bonds
Short-term municipal bonds are debt securities issued by state and local governments. These investments are generally low-risk and offer the added benefit of being exempt from federal income taxes.
Equity ETFs
Equity Exchange-Traded Funds (ETFs) invest in a diversified portfolio of stocksand provide investors with exposure to various sectors, industries, and market capitalizations. These investments offer liquidity through the ease of trading on stock exchanges.
Fixed-Income ETFs
Fixed-income ETFs invest in bondsand other debt securities, providing investors with exposure to different types of fixed-income assets. These investments offer liquidity through their ability to be traded on stock exchanges.
Commodity ETFs
Commodity ETFs provide investors with exposure to various commodities, such as precious metals, energy, and agriculture products. These investments offer liquidity through their ability to be traded on stock exchanges.
Blue-Chip Stocks
Blue-chip stocks are shares of well-established, financially stablecompanies with a proven profitability and reliability track record. These stocks tend to be highly liquid due to their broad market acceptance and significant trading volume.
Apr 9, 2024 · How much liquid cash should you have in your investment portfolio? The liquid cash assets in your portfolio should mirror your planned near-term spending on your financial goals. It's generally best to hold enough liquid investments to cover between two and five years' worth of planned spending.
People also ask
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Nov 1, 2017 · Cash is a very useful tool for investors within all portfolios, with utility that provides liquidity and capital protection. However, it has a long history of underperforming almost every other asset class. So, how does one decide on the appropriate level of cash to hold?
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related to: Should liquid assets be excluded from a personal investment portfolio?Prepare For Your Financial Future And Choose A Merrill Advisor Who Matches Your Needs! Invest In Your Future With Merrill's Wealth Management Solutions. Choose An Advisor Today.
8425 PULSAR PLACE, COLUMBUS, OH · Directions · (614) 880-4817
