Tormach literature says leave the coolant in place. I like to wipe the coolant off the table and spindle and apply a thin coat of oil. I also oil the tooling.
Check the MSDS for the coolant. Tormach has the MSDS sheet on line.
I use GWizard. I like it. It is worth the money.
If you don't mind leaks don't use the silicone. If you want a chance at water tight use the silicone liberally.