In our last post we talked about the concept of Retirement assets with a different liquidity requirement or need date. I like my clients to think about pots of money or buckets. Some of the conceptual buckets are like a pile of cash in your wallet, others are like money in a checking or savings account. Still others are like money in a short term Bank CD or security. The final time bucket is for very long term needs like future house mortgage payments or college funding for your children or estate planning for caring for loved ones after your death.
As you would imagine different time of need money buckets require different financial products in order to optimize liquidity and earnings or growth potential for that particular asset pool of financial assets.
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