In this episode, Ryan Burklo and Alex Collins discuss the factors that impact financial success, focusing on the location and liquidity of wealth. They explain that most people have two buckets of money: savings and retirement accounts. However, they emphasize the importance of having a midterm bucket, which provides liquidity and flexibility for life events and goals. They discuss the characteristics of each bucket and the need for balance and tax efficiency. They also introduce the concept of true liquidity, which involves having money in a separate account that is not correlated with the market. They provide examples and calculations to illustrate the benefits of having a midterm bucket and true liquidity. If you would like to learn more about Quantified Financial Partners, please visit our website www.beerandmoney.net

Takeaways

The location of wealth can be more important than the amount of wealth.
Having multiple buckets of money with different tax treatments and liquidity levels is crucial for financial success.
A midterm bucket provides liquidity and flexibility for life events and goals.
True liquidity involves having money in a separate account that is not correlated with the market.
Balancing risk and tax efficiency is key when allocating money across different buckets.

Chapters

00:00 Introduction
01:45 The Location of Wealth
03:29 The Importance of a Midterm Bucket
04:19 Understanding True Liquidity
07:28 Balancing Risk and Tax Efficiency
11:21 Maximizing Financial Success