Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [liquidity]

Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.

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Is there a good rule of thumb for how much I should have set aside as emergency cash?

I'm buying my very first home, and should be receiving the $8,000 first-time home buyers tax credit. A majority of my savings are going to the down-payment of the house, but we still have a pretty solid reserve. How much money should I hold in an…
Jeffrey
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Importance of liquidity in emergency fund?

I know standard rules of thumb are that it is a good idea to have a liquid emergency fund of between of anywhere from 3-8 months of expenses (depending upon the source). How important is liquidity for such a fund? I recognize it makes sense to…
Michael McGowan
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How much money should I lock up in my savings account?

I'm a 28 software engineer. I make around 26k, of which about 40% I set aside every month. In my two-and-a-half years working I now have about 24k savings. I've recently opened an account that allows me to lock money into a savings account - the…
Svalorzen
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Are precious metals/collectibles a viable emergency fund?

My friend received a gift from a family member in the form of silverware. The exact value is unknown but it is enough to cover 6+ months worth of expenses. I estimate it is a significant portion of their net worth. They don't have any sentimental…
stonk-overflow
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What is the relationship between taxes and annual liquidation of the markets?

I read this article on MarketWatch where they outline Elizabeth Warren's plan to tax the wealthy: 2% tax on every dollar above $50 million in assets 6% tax on households crossing the $1 billion threshold In a Twitter discussion between Mark…
KingsInnerSoul
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Put idle savings to use while keeping them liquid

Since I graduated from college, I've collected ~$15K USD of savings. Currently this is sitting idle in a low interest checking account. I'd like to put it to better use, but I also need to make sure I can draw on it if necessary. Should I go for…
Odrade
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Is there a way to bet on the trade volume of a stock?

Say, stock ABC trades 100,000 shares per day. I feel strongly that in the near future it will trade 200,000 shares per day. Is there an instrument I can buy to profit on this? To be clear, I don't care if the stock goes up or down. I want to make…
John Shedletsky
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Should I prioritize paying down my higher interest debt over building an emergency fund, or vice-versa?

I have a debt of $15,000 at a yearly interest rate of 9%, which can be paid within 5 years. Would it be better for me to: Build first the emergency fund (e.g. liquidity for 6 months' expenses without income) and then start repaying faster my debt,…
user12701
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Are treasury bonds more liquid than USD?

Does it make sense to say that, in a way, US Treasury bonds are more liquid than USD? I think this because the value of all the bonds in circulation is way greater than all the dollars in circulation, so the largest purchase that bonds could…
Jonah
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Are companies like EquityZen legitimate and useful?

There are a list of companies claiming to provide liquidation for employees who have ISOs in private startups but don't have the means to exercise them (because of the ridiculous amount of phantom tax you would pay due to your AMT the next…
Dzt
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Should I wait to save up 20% downpayment on a 500k condo?

Proper 2BRs start at $500k in our neighborhood. We're looking at buying, but I'm leery of the $100k downpayment. It would reduce our savings to 50k liquid and 75k in retirement. I can easily afford just putting down 5% and paying the extra…
Jim
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Can one get a liquidity premium as a retail investor?

Is it possible to get a liquidity premium as a retail investor? That is, between the following two options, I would expect there to be a theoretical extra return to doing (2): Hold an index fund for 5 years. Hold the same index fund for 5 years,…
Geoffrey Irving
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Why would a CD Rate be higher than a Corporate Bond rate?

In looking at my brokerage account for fixed income products, I was looking at both CDs and Corporate Bonds. I was surprised to see that the best 1-year CDs had a higher interest rate than any AAA or AA bonds. (A was slightly higher than the best…
A Person
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How might ETFs accelerate a "crash"

I am editing my question to pose the inquiries first in order to hopefully emphasize their objective, rather than subjective nature upfront. Here is my question: Am I correctly understanding the practical fundamentals of ETF creation/redemption? And…
aaronmams
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How do I research, analyze, and choose the right mutual fund for a roth ira?

I recently opened a Roth IRA in the USA and I'm new to investing. How do I research a mutual fund and what aspects should I analyze to figure out if it fits my investment strategy (I might not even have one yet)? There are many aspects that I came…
Marsellus Wallace
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