Financial Position

Part of a good financial plan is to understand financial positioning, or liquidity. We should discuss:

• Defensive Liquidity- Having enough cash set aside for living expenses, in case of an emergency.
• Offensive Liquidity- Having enough cash to take advantage of a financial opportunity. Purchasing real estate would be one example.
• Cash flow within your household.
• Debt management- understanding the time value of money and interest rate risk. It would also be important to discuss any undergrad or medical school debt you may have and the pros and cons of refinancing this debt.