Liquidity can probably be best defined as “available cash when you need it.”
Keep in mind the words “when you need it.” That doesn’t mean when you think you might need it, but when you actually need it.
All too often, cash is left on the sidelines as a dormant asset. That’s because too many financial professionals are nervous of “just-in-case” scenarios that may play out. That is not true liquidity.
As interest rates start to rise throughout 2022, the ability to put your liquid cash to work will mean new sources of revenue that go right to your bottom line—right where and when you need it. That is what true liquidity is all about.
