liquidity

Liquidity is the ability to quickly convert assets into cash without negatively affecting their value. Your need for liquidity in an investment depends on the purpose and time frame for the investment.  If the investment is part of an emergency fund or for something you plan on buying in the next month, the investment should have high liquidity.  If the investment is part of your retirement and you’re 30 years old, your investment should be low in liquidity in order to realize a higher return. [Read more…] about What is Liquidity?