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Building significantwealthisnt just about working hard and investing.
Its also about increasing liquid assets, a crucial aspect of financial planning that many overlook.
Keep reading to find out what Salahi considers some of the most effective strategies for boostingliquid assets.
High-yield and money market accounts can offer significantly higher returns than traditional savings accounts, he said.
This extra yield effectively increases your liquid assets without requiring additional savings, he added.
Utilize Laddered Certificates of Deposit (CDs)
Another strategy Salahi recommends is CD laddering.
He said, CD laddering is an excellent strategy for maintaining liquidity while earning higher interest rates.
Specifically, broad-marketETFsare less volatile than individual stocks and easily converted to cash.
You ensure a steady cash flow stream by purchasing bonds with staggered maturity dates, he said.
These accounts often provide higher interest rates on cash balances and allow easy transfers betweencash and investments.
These can be particularly useful for high-net-worth individuals with significant real estate or securities assets.
Its also about liquidity.
Salahi said, This maintains your risk profile and can improve your overall liquidity position.
The cash saved on taxes effectively increases your liquid assets, he continued.
Evensmall, regular contributionscan add up significantly over time, he said.
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