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Yes, but with caveats. Major cryptocurrencies (Bitcoin, Ethereum) can be sold within 24-72 hours, making them technically liquid. However, high volatility (20-50% price swings) and exchange transfe...
Read moreIlliquid assets take months to convert to cash: primary residence, rental properties, vehicles, retirement accounts (401k/IRA), private equity, business ownership, art, collectibles, and antiques. ...
Read moreNo. Your primary residence is illiquid because selling takes 2-6 months (listing, finding buyer, closing). Transaction costs (6% realtor fees, closing costs) also reduce proceeds. Home equity lines...
Read moreA liquidity ratio above 2.0 is considered healthy, meaning you have twice as many liquid assets as short-term liabilities. Below 1.0 indicates financial stress. Formula: Liquid Assets á Current Lia...
Read moreLiquid assets provide immediate access to cash for: job loss (3-6 months expenses), medical emergencies, car/home repairs, family emergencies, or unexpected bills. Without liquid assets, you're for...
Read moreKeep 3-6 months expenses in immediately liquid accounts (high-yield savings, money market) earning 4-5% APY. This ensures instant access without market risk. Additional funds (months 7-12) can be i...
Read moreItâs a table showing each payment split into principal and interest, plus remaining balance over time. Early payments are mostly interest; later payments are mostly principal.
Read moreMake extra principal payments, switch to biweekly halfâpayments (13 months per year), or refinance to a shorter term. Even small extra amounts save significant interest.
Read moreCompare your loan rate to expected afterâtax returns. If your loan APR is 6â7%+, paying it down is a strong guaranteed return. Always keep an emergency fund first.
Read moreYes, but specify "apply to principal" with the payment; otherwise they may advance the due date instead of reducing balance. Check for prepayment penalties.
Read moreMost installment loans use simple daily interest: (Balance Ă Annual Rate) á 365. This gives the cost per day; payments reduce balance and therefore tomorrowâs interest.
Read moreEarly payments are interestâheavy because interest is charged on todayâs balance. As principal falls, more of each payment goes to principal. Extra payments accelerate this shift.
Read moreYes. Because interest accrues daily, any principal paid today reduces tomorrowâs interest. You donât need to wait for the due date to benefit.
Read moreTarget the loan with the highest daily cost (equivalent to the highest APR Ă balance). This is the avalanche method and minimizes total interest.
Read moreThe optimal age to buy LTC insurance is 50-65, with 55-60 being ideal for most people. Before age 50, you're paying premiums too far in advance and total costs may exceed benefits. After age 70, pr...
Read moreCurrent 2025 national median costs: nursing home care $108,000/year ($297/day for semi-private room), assisted living $64,000/year ($5,350/month), home health aide $62,000/year ($30/hour full-time)...
Read moreAlternatives include: 1) Self-insurance - save/invest premium money yourself (works if net worth exceeds $2-3M), 2) Medicaid planning - spend down assets to qualify for government coverage (only co...
Read moreSelf-insurance makes sense if your net worth exceeds $2-3M - you can absorb $300K-$500K in care costs without depleting assets. For net worth $200K-$2M, LTC insurance provides leverage: $90,000 in ...
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