What is Liquid Net Worth? – Gatsby

Your ‘liquid’ net worth is the value of assets that can be turned into cash immediately. This typically includes cash, currency, liquid publicly traded stocks, liquid publicly traded bonds, liquid publicly traded options, along with other liquid assets. It does not include less liquid items such as your home, your car, jewelry, or fixed-term investments (see total net worth).

Knowing your liquid net worth is an important to your investment profile as you should try to maintain enough liquid assets to cover any upcoming life purchases or emergency expenses.

Typically, those with lower available liquid assets are able to take on less risk. As options are generally risky investments, you should have enough liquid assets to take on that risk.

Liquid net worth options

Under $50,000
$50,001 to $100,000
$100,001 to $200,000
$200,001 to $500,000
$500,001 to $1,000,000
$1,000,001 to $5,000,000
Over $5,000,001