Propose liquidity arrangements suited to goal-based and comprehensive financial plans
The idea
Identify liquidity needs first: spending, an emergency reserve, near-term goals, taxes, private-fund capital calls and gifts. Then map sources: cash and short-term instruments, the liquid portfolio, income, committed credit lines or borrowing against securities, and planned asset sales. A common approach segments assets by time, holding perhaps one to two years of spending in cash-like assets, a medium-term reserve in bonds and long-term growth assets beyond. Borrowing against a concentrated or appreciated position can provide cash without triggering a taxable sale, but introduces margin and refinancing risk. The trap is ignoring illiquid holdings' future calls or relying on credit lines that may shrink in a crisis.
In the app: 1 practice questions on this outcome, a narrated walkthrough with diagrams, spaced review that brings it back before you forget it.
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