How Much Cash Should Retirees Have? As Little as Possible

How Much Cash Should Retirees Have? As Little as Possible

Article w/ links to studies: https://robberger.com/how-much-cash-s...

Vanguard article: https://investornews.vanguard/the-4-b...

Moving from a regular paycheck to living off of your nest egg is not an easy transition. At least it hasn’t been for me. One of the many decisions retirees must make is how much cash should they have in the bank.

For some it’s a question of budgeting. They keep enough to pay the bills over the next several months, but that’s it. For others cash acts as a buffer in the even the stock market drops 10%, 20% or more. For those who see cash as a buffer, several more questions need to be considered:

--How much cash should you keep in the bank?
--How do you decide when to replenish your spending account?
--Do you factor the amount of cash you have into your overall asset allocation?

In this video, we'll explore these questions. We’ll look at some research papers that address these questions. We’ll also talk about how you can get the psychological benefits of holding lots of cash without actually holding lots of cash.

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ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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