Liquidity position is an important aspect of your contacts' financial lives. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. In other words, if you withdraw money from an account, you will not suffer a penalty or fee. Accounts that are considered liquid are checking accounts, saving accounts, and brokerage accounts. It's up to you on what to recommend, but typically a certain amount of income is recommended to be in liquid accounts for day to day spending, in the case of an emergency, and if your contact loses their job. Advisers recommend either a percentage of income or any where from 3 months to 6 months to 12 months.