Account liquidation is the process of converting assets like stocks, bonds, commodities or real estate into cold, hard cash. Investors might liquidate accounts to switch brokers, capture gains, make a large purchase or switch to a more conservative asset allocation.
Liquidation is the process of turning illiquid assets into liquid ones – i.e., cash.
Businesses may liquidate their assets to cover outstanding debts, lighten liabilities or when filing for bankruptcy. In these contexts, liquidation often takes on a negative tone.
In investing, liquidation isn’t always a sign of doom and gloom. For instance, investors may liquidate specific stocks or securities to minimize losses or lock in profits. (One example is the Bitcoin craze of 2021, when some investors sold out to capitalize on Bitcoin’s meteoric rise.)
However, investors may not stop at just one or two assets. Sometimes, they liquidate their entire accounts.
Account liquidation refers to selling all your assets – like stocks, bonds, real estate and commodities contracts – for cash.
Often, account liquidation is part of the account closure process, where an investor leaves (or is removed from) their brokerage permanently.
Account liquidation often occurs when an investor plans to move brokerage firms or the brokerage terminates their account. But that’s not always the case.
For instance, some investors liquidate their accounts to cover large purchases, like buying a house or paying unexpected medical bills.
And during Covid-19, many investors liquidated their accounts to protect against volatility or boost their emergency savings.
Q.ai makes account liquidation easy.
You can initiate the liquidation process by tapping the “Move Money” icon on the lower right-hand side of your screen. Or you can email us anytime at email@example.com anytime for personalized assistance.
Q.ai’s liquidation process is partly dictated by our brokerage partner Apex Clearing.
Due to standard anti-money laundering practices, Apex Clearing holds deposits for at least 10 days. If you’ve just made a deposit, you’ll need to wait at least that long to withdraw funds or liquidate your account.
But if your money’s been percolating for a while, your account liquidation should proceed much faster.
You can view the progress of your transactions (including account liquidation requests) in your Q.ai app anytime. Your dashboard will reflect any pending transactions at the top of the screen. Or navigate to Account Settings > Transactions to view your transaction history in full.
Investors liquidate accounts for all sorts of reasons, from switching brokers to cashing in hard-earned gains to pay for a new house or car.
You might also initiate a partial, rather than total, liquidation to move money into other assets due to poor performance.
And, as you age, you may cash out some riskier securities to buy more conservative investments that protect your capital.
Whatever the reason, Q.ai is here to make your account liquidation experience as painless as possible.
Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly-owned subsidiary of Quantalytics Holdings, LLC ("Quantalytics"). Quantalytics offers automated financial advice tools through Quantalytics Investment Advisors, LLC ("QAI"), an SEC-registered investment advisor. QIA’s investment advisory services are ONLY available only to residents of the United States. Disclosures concerning QIA’s investment advisory services are available on its Form ADV filed with the SEC. The content in this newsletter is for informational purposes only and does not constitute a comprehensive description of Q.ai's investment advisory services.