Why Your Stance on Liquidity Needs to be More Fluid

It might not be the Dave Ramsey approach to building wealth, but some of your clients may need to pump the brakes on debt reduction. Access to liquidity is more important for some than others, which means general rules of thumb won’t always apply—especially when business ownership is involved.

In this episode of Elementality, Reese Harper, CFP® and Abby Morton, CFP® shed light on the Elements® calculation called Liquid Term (Lt) which is used to coach clients through strategic cash management decisions.

“Pay off your loans.” “Maximize your retirement plan contributions.” “Invest in real estate.” Perhaps these nuggets of advice apply broadly to the masses, but when do they get in the way of your clients’ progress? In this episode of Elementality, Reese welcomes Abby Morton, CFP® at Dentist Advisors to talk about the role of liquidity in a financial plan—especially for small business owners.

You’ll learn how to calculate an Element® called Liquid Term (Lt) and how it can be used to understand the source of your clients’ frustrations or achievements. The principles discussed in this episode are foundational, but since widespread advice often sends people down highly leveraged roads, Reese and Abby explain liquidity from a more strategic point of view.

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