Liquidity – What does it really mean?

Have you ever been in the situation where you needed to withdraw cash, close a term deposit before maturity, sell-down managed funds or shares, or put a property on the market to meet a sudden demand? It could have been for an unexpectedly high utilities bill or putting a deposit together for a newly listed residential home that ticks all the boxes for you and your family. One of the things that you may have noticed is the amount of time it took for you to convert that particular type of asset into a usable form and then receive it.

In this animation you’ll find out about what liquidity is and the implications of holding illiquid assets because when you are growing your wealth, you don’t want to be caught in the situation of being ‘asset rich, but cash poor’ especially if you need access to money.