[Jhon J]

'Liquidity' is a measure of how fast an asset can be coverted to immediate purchasing power without losing appraised value. Real estate and jewelry can be sold quickly, but only when the price is considerably below some recognized market value. Financial instruments can be sold more easily with less loss due to immediate cash needs. However, these savings accounts, cds and bonds rarely earn the rate of return available with more tangible assets. Discuss your views on the need for liquidity versus committing your money to less liquid investments in return for higher earnings as a person evolves from young adult to middle age to the golden years. This will reflect your perception of the need for daily living expenses and current possible emergencies versus a need to prepare for retirement.

please give me your thoughts.

thank you.