THE FINANCIAL COMMUTE
Hosted by Wealth Advisor Chris Galeski, THE FINANCIAL COMMUTE is a weekly podcast that gives the rundown on what's going on in the current market, how it affects you, and what you can do about it – all designed to fit into your commute. Each week Chris welcomes an expert guest, including Morton Wealth advisors, fund managers, and investment analysts, to break down complex financial topics. Our goal for this podcast is to provide you with the tools to help you navigate this challenging environment, leading to a path of more confident investing.
THE FINANCIAL COMMUTE
Mastering the Balance: Liquidity vs. Illiquidity
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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.