On this week’s episode of THE FINANCIAL COMMUTE¸ host Chris Galeski welcomes COO and Wealth Advisor Stacey McKinnon to discuss liquidity. 

Illiquidity can be nerve-wracking due to the emotional bond people have with their money and the comfort that comes from having easy access to it. Stacey discusses conversations she has with clients about balancing liquid assets for immediate needs versus investing in long-term illiquid assets like businesses or real estate, which may offer better returns but less accessibility. Different account types, cash flow needs, and individual circumstances have a huge impact on which illiquid investments one should acquire and how much of one’s portfolio should be made of illiquid investments. 

It is critical to take a balanced approach to liquidity in financial planning, and investors should consider having different “buckets” of assets categorized by their liquidity needs to meet various goals.