Liquidity:

What Happens When Life Takes a Turn?

Access to money quickly is what liquidity is about. At times we need money for emergencies or unexpected expenditures that pop up, and at other times for good opportunities that present themselves. Most of us want access to some of our money conveniently as well as quickly and we don't care all that much as to the rate of return on these monies. But liquidity is also a part of a well-constructed investment portfolio and the rate of return on these dollars is important. Liquidity is usually the second most important function of money in the distribution phase.