GIPS - liquidity constraint

IS there is rule of thumb to determine if someone has liquidity constraint?

look at total portfolio and compare to future liabilities. if someone has 50 000 000 worth of assests and needs to finance personal expenses of say 100 000 then liquidity is not a constraint. If on the other hand you have a 100 000 liability in the (near) future and you portfolio of assets or future income (pension etc) is say 300 000 you may have a problem with liquidity

BTW: I assume you were asking about the IPS? cause there is a similar thing in ethics which they call “financial hardship” or something where you can sell your personal portfolio even though it’s contrary to the recommendation issued by your firm

Yup _ i meant IPS sorry… So would say expense/ portflio income of 5% significant or 10%?

What if there are some illiquid asset like private equity and read estate. Do we consider this? How about money need for unique circumstance? It seems that they used only liquid asset for money needed for unique circumstance in one of mock question.