Liability-Driven Liquidity

Total Household Liquidity Estimator

A true liquidity requirement is liability-driven — anchored to your actual cash outflows and committed capital — not an arbitrary percentage of assets. This tool sizes the pool you should hold in liquid instruments so the remainder of your portfolio can compound without cash drag.

Step 1 of 3 — Cash Outflows

Mortgage (annual)iTotal annual mortgage principal and interest.

Debt service (annual)iAnnual student loan, auto, and other debt payments.

Bills & fixed costs (annual)iInsurance, utilities, tuition, and other non-discretionary annual costs.

Variable discretionary spendingiTravel, dining, entertainment, and other flexible annual spending.

Gross annual outflows$0

Total Target Liquidity

Sized to cover 3 months of operational cash, 12 months of planned outflows, and a 10% strategic buffer.

Net reliance

Monthly reliance

Legacy calls

Liquidity tier breakdown

Tier 1 — Immediate Operational CashiCovers day-to-day household operating costs that must be funded from the portfolio. Sized as your monthly portfolio reliance times the Tier 1 stability multiplier.

0% of total

Tier 2 — Planned Capital OutflowsiFunds known near-term capital calls and committed outflows due within 12-24 months, layered on top of your ongoing portfolio reliance.

0% of total

Tier 3 — Strategic / Comfort BufferiA flat 10% reserve applied to Tier 1 + Tier 2, held for strategic optionality and unforeseen deviations from plan.

0% of total

The Evergreen Multiplier

Why evergreens hold the rest

Once this liquidity pool is set aside in cash and near-cash instruments, the remainder of your portfolio should stay fully invested. Evergreen funds are optimal for that remaining allocation: their perpetual structure avoids the cash drag that accumulates when capital sits uninvested waiting for illiquid opportunities, so your capital keeps compounding on top of — not beside — the designated liquidity pool above.

Get your PDF summary

Enter your details to download a branded PDF of your results. The PDF includes a brief plain-English explanation of what your numbers mean so you can interpret them with confidence. We'll also send you occasional insights for healthcare professionals — no spam, unsubscribe anytime.