What is the right approach to write a complete answer regarding LIQUIDITY constraint as part of the IPS?
Sub-topics to my questions:
1. Do we need to include calculations when answering liquidity contraints? Or we can just state the liquidity needs without mention to numbers?
2. Should we include living expenses as part of the liquidity needs? If an investor has an after tax income of $100,000 and living exenses of $120,000. Should you include $20,000 for liquidity needs.
3. Some of the guideline answers do not include a recommendation for 3-6 months of liquidity needs. Should we include that in all the answers that are asking about liquidity constraint?
DGB