Why Listen?

In this conversation, we sat down with Garrett Baldwin to talk about the role liquidity plays in financial markets, investing, and personal finance. We explore why liquidity isn’t just about having cash on hand. It is about breathing room—and the ability to keep your options open for individuals and families. As Garrett puts it, having liquidity is essential to every financial plan because “liquidity is permission.” It is permission to borrow, to expand, to take risks and to make financial decisions without stress or anxiety.

Garrett breaks down how liquidity influences market behavior, the often-overlooked “financial plumbing” of the system, investment strategies in your portfolio, and the broader economic landscape. We also dig into the behavioral side of liquidity and why it matters so much for financial planning, especially during periods of market volatility. We wrap up with practical takeaways for investors on managing portfolios in a fast-changing environment.

About Our Guest

Garrett Baldwin is a macro and commodity economist from Maryland. He is the author of the Substack site Me and the Money Printer and the host of a daily trading show at TheoTrade. He is a graduate of Northwestern’s Medill School of Journalism with advanced degrees from the University of Indiana, Purdue University, and Johns Hopkins University.

This conversation breaks down the following article: What Do You Mean By Liquidity?

Key Takeaways

• Liquidity is having a margin of safety, providing breathing room for financial decisions.
• Wealth is not just net worth; it’s about having options.
• Liquidity acts as a shock absorber for our lives.
• Markets respond to liquidity conditions, not just earnings.
• The structure of the market has shifted significantly over the past 30 years.
• Investors must consider liquidity when making investment decisions.
• Behavioral finance plays a crucial role in how individuals react to liquidity changes.
• Understanding the plumbing of the financial system is essential for investors.
• Planning for liquidity events is critical for retirement success.
• Ongoing communication with your financial planner is vital for effective liquidity management.

As retirement approaches, one of the most important, and most misunderstood, decisions is when to begin Social Security benefits. There is no universal “right” answer. Some individuals choose to start benefits early out of concern about the program’s long-term stability. Others view Social Security as a temporary income bridge to help pay down debt or ease the transition into retirement. The reality is that every situation is different, and the decision carries meaningful financial consequences. Small missteps can permanently reduce lifetime benefits, making careful planning essential.

In our latest Off the Page episode, we sat down with Tom Barrett. Tom is a managing director of applied insights for Hartford Funds. Tom engages and educates financial professionals and their clients about emerging opportunities in financial services. These opportunities range from tactical strategies in areas such as retirement-income planning and legacy planning to anticipating and preparing for long-term demographic and lifestyle changes.

It was a great conversation, and we encourage you to listen to the episode and reach out to our team with any questions.

In our latest episode, we sat down with our own Jude McDonough, who heads up our Retirement Plan Consulting business. We discussed the parties to a corporate retirement plan and their roles in servicing the plan.It was an informative conversation for anyone in charge of a corporate retirement plan. We encourage you to reach out to us if you have any questions about your corporate retirement plan.The corporate retirement plan is a key benefit to the employees that is easy to overlook. There is no renewal for the plan, so it is something that is put off until a later date. In reality, it is usually a major investment from the employer and is important to the employees. The service providers that you choose can make or break your plan and can have a major impact on your employees.The different parties to the plan are replaceable and often interchangeable. If you are not getting the service you need from one of the parties to your plan, you can replace that service provider. Some changes have more disruption than others. The most difficult provider to replace is the recordkeeper. A good Investment Advisor can help you improve your situation with your recordkeeper without necessarily having to move the plan.If you are not getting any service from your Investment Advisor, they are the easiest party to replace. Your employees deserve to have access to someone who can help them with their retirement plan and be a resource for their financial needs. Furthermore, the Investment Advisor can help you select and monitor the fund lineup, review your recordkeeper relationship, benchmark your plan fees, and act as a liaison between you and the other service providers. If you are paying an Investment Advisor and not getting any service, you should consider looking at alternatives to benefit you and your employees.