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What are some examples of these crazy liquid assets? In the past I've spent extra money on tools, a house and some gold and silver (as I have a goldsmithing ho
by nanomonkey 5y ago
What are some examples of these crazy liquid assets?
In the past I've spent extra money on tools, a house and some gold and silver (as I have a goldsmithing hobby). The house is difficult to unload, at least mentally, pretty good market. The tools have kept their value, but finding a buyer is difficult. The gold and silver are a similar story, but tend to fluctuate in value rapidly.
- reducesuffering 5y agoGlobal stock and precious metals ETF's are inflation-resistant and quite liquid. You'll pay only 0.02% spread to liquidate them and have the cash in your bank account within a few days. As opposed to a house which is generally 6% spreads and a couple months to liquidate. Only in exceptional liquidity crises (August 2008 - March 2009, and March 2020) are you at risk of cashing out for 30-50% losses. 80% of the time it's at value or higher. So you just need a small percentage of assets that are deflation-resistant (cash & bonds) for the small periods of time deflation happens, to pay your expenses.