There’s a good reason to invest and diversify what we invest in. There’s a better reason to start a self directed investment account and that reason is Liquidity.

What is liquidity? It’s the idea that your money is liquid or easy or fast to access at any given point in time. Digital money (money in a bank account or in an investment account) is much more liquid than money tied up in equity in a home or in a lego collection or in a collection of Pokemon cards. Cash is great for in person liquidity, meaning you can quickly pay someone $100 dollars or so for whatever you need to pay them. But even better than cash, is having your money in a digital account where you can just tap a button and pay them near instantly, from anywhere in the world.

I have a diverse collection of assets, but nothing beats having a few digital accounts where I can put money and transfer it whenever I actually need it. That digital cash is as liquid as it gets, it can flow in and out of my accounts within a matter of seconds.

The problem with hard assets (say a home or collectables) is that I would have to sell those items in order to get their cash value and then be able to deploy that money elsewhere. Further, I would have to find someone willing to pay me what I want for my home or my Pokemon cards which depends heavily on someone else to make my money liquid. Not a great way to move money around.

It’s great to hold a bunch of cash, but the problem there is that I would need to have a bunch of cash in my house and that’s a scary proposition. Getting robbed isn’t fun.

But holding cash in an account with multi-factor security and having multiple accounts with different passwords and recovery methods makes it much tougher for people to touch and it makes it much more secure than walking around with $1,000’s of dollars on your person.

So stay liquid, keep money in a secure account, where you can flow it anywhere you need to, when you need to. Stay liquid my friends.

Respectfully,

Michael, with military.cash