March 28, 2023

Liquid Assets and What They Do For You

31 minutes

We all know that in the case of an emergency, it’s nice to have finances not tied up in stuff like real estate or the like - i.e., liquid assets. But did you know that’s not all that you want liquid assets for?

This week, your Lords of Liquidity (not an actual title), Erik Garcia, CFP®, BFA, and Xavier Angel, CFP®, ChFC, CLTC, discuss liquid assets, what they are, where you’ll keep them, and what you’ll use them for. They talk about how liquid assets can help out in business, paying for school, and calming anxiety.

Episode Highlights:

Xavier explains that liquid assets are the assets that you can readily move to cash, if you need to get your hands on it quickly. (2:37)

Xavier mentions that liquidity is essential for taking care of day-to-day expenses and saving for future needs. (6:53)

Erik explains that liquid assets help businesses feel more confident and comfortable going into the month. (9:19)

Erik shares that liquidity makes debt tolerable, especially lower interest rate debt. (13:24)

Erik mentions that liquidity reduces stress, allows us to make better decisions, and provides safety and security. (15:57)

Erik discusses how liquidity allows us to be more efficient and purposeful with our investments. (17:21)

Xavier mentions that it is important to review our retirement plans when tax planning. (21:29)

Xavier recommends individuals to sit down with a financial planner and advisor to discuss how to begin saving to build net worth. (24:29)

Erik shares that a good financial planner helps you match up assets with liquidity events and keep you accountable. (27:05)

Erik discusses why having liquidity is one of the most important things that we can be talking about right now. (28:28)

Key Quotes:

“Sit down with your Certified Financial Planner and let that individual look at where you currently are, what are you doing, and what is a more efficient way to begin saving to begin building net worth. Do you have enough liquidity?” - Xavier Angel, CFP®, ChFC, CLTC

“When you have liquidity, when you have cash available, debt becomes tolerable, especially lower interest rate debt.” - Erik Garcia, CFP®, BFA

“Having liquidity reduces stress, it allows us to make better decisions when we know we've got the safety and security of some type of liquid assets on top of cash. ” - Erik Garcia, CFP®, BFA

Resources Mentioned:

Erik Garcia, CFP®, BFA

Xavier Angel, CFP®, ChFC, CLTC

Plan Wisely Wealth Advisors

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By Erik Garcia, CFP®, Xavier Angel

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