I clicked your link and clicked on a couple tabs even but did not find data on what most people have liquid or illiquid. Can you point me to it?
$100k sounds like a lot but....I live in San Diego. All in, it costs about $4,200/month post-tax to live here. Sure, it can be done on much less. That means $50,400/year post-tax. So your $100k whether liquid or not only lasts two years max.
Let's say a real recession occurs and you lose your job. If your $100k is in the asset that crashed -- say real estate (which I like real estate) or speculative tech stocks -- oh boy. You're now probably at $70k hopefully. If it takes you 12 months from losing your job to finding a job. Now you're looking at only $20k left in your account....that is scary.
I know I am being paranoid because you'd get unemployment + could probably find a lower level job quick in the meantime + you would cut your $4200/month to bare minimum. But that's my point, I live in this fear and the $100k provides some peace of mind.
$100k sounds like a lot but....I live in San Diego. All in, it costs about $4,200/month post-tax to live here. Sure, it can be done on much less. That means $50,400/year post-tax. So your $100k whether liquid or not only lasts two years max.
Let's say a real recession occurs and you lose your job. If your $100k is in the asset that crashed -- say real estate (which I like real estate) or speculative tech stocks -- oh boy. You're now probably at $70k hopefully. If it takes you 12 months from losing your job to finding a job. Now you're looking at only $20k left in your account....that is scary.
I know I am being paranoid because you'd get unemployment + could probably find a lower level job quick in the meantime + you would cut your $4200/month to bare minimum. But that's my point, I live in this fear and the $100k provides some peace of mind.