"As a financial advisor who works closely with wealthy families, I've found that financial stress rarely stems from a lack of wealth, but rather, the inability to access it when they need it most. When opportunity knocks-whether it's a timely business venture, real estate acquisition, legacy-driven philanthropic gift, or family wealth transfer-liquidity is the difference between being ready to act or watching it slip by. In these scenarios, being nimble isn't optional, it's essential."
"But where does liquidity fit into one's overall portfolio? My clients view liquidity as the ability to access funds swiftly and seamlessly, without compromising the integrity of their long-term investment strategy. However, the ability to unlock funds quickly is just one part of the liquidity equation. Ideally, liquidity also preserves the integrity of your portfolio and opens the door to meaningful tax and estate planning advantages."
Liquidity enables rapid access to capital for timely business ventures, real estate acquisitions, philanthropic gifts, and family wealth transfers, making nimbleness essential. Liquidity should allow swift access without compromising long-term investment integrity and should support tax and estate planning advantages. Many investors lack awareness of available liquidity solutions and their features. Common liquidity tools include HELOCs, personal loans, and 401(k) loans, with three commonly used solutions being margin loans, intrafamily loans, and cash equivalents. Margin loans let investors borrow against securities without selling, often avoiding capital gains taxes while allowing assets to keep earning. Intrafamily loans circulate capital within families through trust and relationships. Cash equivalents like money market funds provide low-risk, accessible cash while earning competitive returns.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]