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I am about to purchase a Coop and need 24 months of funds.
I have a 403(b) plan and a ROTH IRA that would like to include in my listing of liquid assets. It is my impression that both of them can be liquidate it - The 403(B) I think allows hardship withdrawals for purchasing a home - Does anybody have any experience with counting this as liquid assets.
As a clinician, I also have an account receivable from health insurance companies (billing submitted that has not yet been paid) - What impact do AR's have on liquidity considerations?
Retirement- some count it, some don't.
Ask the managing agent if this Board allows retirement funds to be counted as liquidity. If they don't outright say no, be aggressive and count it, especially if you need it.
AR- I would guess that if you have to explain it, they will be spooked and won't count it. You won't have enough data points to provide you with even a guess on a msg board like this.
My experience, which is some what limited, indicates that liquid assets do not include funds such as these. Property, which can easily be valued, is not a liquid asset. You could always sell it under duress but a coop board would not be interested.
Liquid usually means liquid.
Liquid assets are cash, bonds, and securities. Typically, assets held in a retirement account would not used to calculate liquidity, only your net worth. If you need to liquidate your retirement accounts under duress, you may not have enough of a financial cushion for this coop.
Big accounts receivable are pretty common in the medical field. They're not treated as liquid (because theoretically, Medicare could never pay you) but certainly merit some consideration by the board, because a candidate who has a million dollars in AR is probably richer than one who does not.
This is the kind of thing you need to be working with the listing broker on -- because, frankly, I would explain it to different boards in different ways.
DG Neary Realty
I would only list it if either I were desperate to make a minimum liquidity figure or if A/R are unusually high at the moment.
Today's cash was yesterday's A/R, so why look at today's A/R yet? Only if cash today is abnormally understated by some specific collection situation.
Then some accountant on the board is going to say, if you want me to look at A/R, show me your A/P too. Then it gets too complicated.