Liquidity spectrum

Liquidity spectrum — the line every asset sits on, ordered by time-to-cash at fair value: savings (instant) → stocks/REITs (T+2) → bonds via secondary market (days, price risk) → MP2 (5-year lock) → property (3–12 months) → private business stakes (6–24 months, if ever). Two governing rules: illiquidity must be paid for in extra yield, and liquidity is bought before it’s needed — the emergency fund exists so the right end of your spectrum never gets cracked open at fire-sale prices.

First used in: 1.8 · Risk: what you’re actually paid for