How Much Cash Should You Hold in Retirement?

Many things change when we retire. There’s the obvious change–we stop working. And there’s a less obvious change–how we approach cash.

Before retirement, we might have an emergency fund of three to six months’ worth of living expenses. After retirement, we need cash for so much more. The ideal cash reserve depends on individual circumstances, including income stability, potential emergencies, and comfort level during market volatility.

In this video, I’ll walk through the seven main reasons retirees hold cash. For each, we’ll look at how much cash one should have for each reason and the type of account best suited to hold the cash.

Resources

Savings Accounts: https://www.allcards.com/savings-acco...
No-penalty CDs: https://www.allcards.com/no-penalty-c...
T-Bills: https://fixedincome.fidelity.com/ftgw...

Timestamps

0:00 - How Much Cash Should You Hold In Retirement
1:33 - Cash Investments
2:20 - Monthly spending
3:30 - Emergency fund
5:11 - Short term savings
6:19 - Taxes
7:18 - Income gaps
9:08 - Peace of mind
11:17 - Stock market crash
15:39 - Episode recap
16:15 - Financial Freedom

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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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