![]() ![]() ![]() A share of a penny stock would be less liquid, however, because it might take some time to find an investor who wants to buy it. Both businesses and individuals can have liquid assets, although businesses commonly referred to them as “current assets” on their balance sheet.Ī share of Apple stock is an example of a very liquid asset it’s highly demanded by investors and you can sell it quickly via the stock exchange. Liquid assets tend to be intangible, meaning they usually aren’t physical assets you can touch or hold in your hands like a home, car, or jewelry. Thus, liquid assets are assets that can quickly be converted into cash without a significant loss in value. Liquidity refers to the ability of an asset to easily be converted into cash. In this guide, we’ll explain everything you need to know about liquid assets and clearly explain which types of life insurance policies are considered assets. The short answer is that it depends on the type of life insurance policy you have. With this in mind, a lot of people wonder if their life insurance policy is considered an asset, and if so, is it a liquid asset? Your life insurance policy may be one of the largest liquid assets you have, because certain policies build cash value and can even be sold for a lump cash sum through a process known as a life settlement, making them highly liquid. If you’re nearing retirement and wondering if there’s any way to stop working earlier - or if you’re currently retired and want to improve your financial security - it’s important to look closely at your finances, particularly your liquid assets. As a result, people are working longer to pay off debt or looking for ways to downsize their expenses so they can retire before they’re 70. Even a single medical emergency can derail years of saving. ![]() In this era of constantly escalating living costs, few people are able to avoid debt or adequately save for retirement. ![]()
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