The CapitalWize Q&A column addresses your wealth management questions courtesy of the Capital Formation Group, Inc.
What is liquidity?
Simply put, liquidity is how easy something is to sell at a perceived fair value. Too often in investing (and life!) things are “easy to get into, tough to get out of.” A primary tenet of our investing is the exit strategy for any investment we make on behalf of a client. For monies to be non-liquid, meaning not readily tradable or without easy access for a set number of months or years, the investment theme has to be truly compelling. Liquidity has a real value, as anyone who has needed cash fast will tell you, and non-liquid investments should outperform liquid investments to account for the difference.
John Williams is President/CEO of Capital Formation Group, Inc. www.capitalformationgroup.com If you would like speak with Mr. Williams, he can be reached at (781) 237-0123 or by email at jwilliams@capformgroup.com.
Any tax advice contained herein is of a general nature and is not intended to provide investment advice nor does it account for your individual investor circumstances. Further, you should seek specific tax advice from your tax professional before pursuing any ideas contemplated herein. This advice is being provide solely as an incidental service to our business as insurance professionals.
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Investment Advisory Services Offered Through Capital Formation Group, Inc.
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