Ep 6: Three Traits of Money in Financial Planning

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Let’s dive into financial literacy and the three traits of money you want inside your portfolio. Do you know what they are?

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Show Notes

On today’s episode, we’ll share the three traits of money that you need in your portfolio.

“If we could create the perfect portfolio, what would we want? Well, we’d want growth, safety and liquidity,” said Scott.

Growth is what we associate with the stock market. You put your money in to get returns, and the idea is to outpace inflation. You also have to have money on the safe side.

Everybody should have liquidity, or cash available. We all found out the hard way when Covid hit how valuable cash on hand can be. So, can you achieve all three – growth, safety and liquidity – in an investment? There is no perfect investment, but you can have two of those qualities represented.

“If we want growth and liquidity, we’re going to have to give up safety,” said Scott.

Cash is liquidity, and it’s a critical part of a plan. Stocks, bonds, bond funds and mutual funds are part of growth but can also provide liquidity because you can liquidate those assets. However, there is not as much safety in stocks and bonds.

Over time, our trade offs of the qualities of money might change. In our younger years, we’re more focused on growth. As you approach retirement, you need to start adding in some safety.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.

4:18 – Three traits of money

7:55 – Perfect portfolio

9:30 – Cash

11:20 – Annuities

12:33 – Trade offs

16:30 – Contact Scott

Thanks for checking out this episode. We’ll talk to you again soon.


“If we could create the perfect portfolio, what would we want? Well, we’d want growth, safety and liquidity.”

-Scott Sierens