Step 3 – Define your Liquidity Constraints

Immediate or near-term cash requirements may create the need for more liquid assets despite the overall long-term objectives. Client has the following liquidity constraint(s):

List specific requirements.

Examples include:

Emergency cash – range from 2-3 months, includes medical needs, home improvements

Goal spending – down payment on a house, child’s education

Estate taxes – higher net worth clients should take this into concern and begin to set funds aside.

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