Today, I want to talk about a word in finance that is often misunderstood and/or ignored – liquidity.   

There is a language of finance, and liquidity is one of those words that can be difficult to describe; it’s much like one of those words or phrases in Spanish or French that just doesn’t translate well into English.   

We hear things on the news about how the Federal Reserve is “injecting liquidity into the system,” or maybe we read an article about how “liquidity issues” led to the demise of a certain hedge fund or family office.   

You realize liquidity serves an important role, but maybe you don’t exactly know how it applies to your situation.  Even a quick dictionary search doesn’t give you much clarity.   

So, let’s discuss how this mysterious concept of liquidity applies to you personally and how crucial liquidity is to your personal financial plan. 

Links mentioned in this episode:

• http://thoughtsonmoney.com