How Much Liquid Cash Should You Have in Retirement?

How Much Liquid Cash Should You Have in Retirement?

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[CapitalWorksPro]

6 months pre-retirement.

18-36 months in retirement.

Better to over prep and not need it, than under prep and not have it.

[gibblespascack]

I agree with the timeline. I am pre-retirement and hold 1 year of house budget in Cash. Post retirement, the 2 yr ot 3 years of cash seems about right so that you have time for the market to recover. You don't want to need a job in retirement. Those greeter jobs might not be available after the next recession.

[Zorlig]

I personally won't, because there will be so much that it won't matter and it's just take a loan against the portfolio if I don't want to sell.

[Dexster]

I can't believe this has been posted for 2 days and nobody has inquired on where Brian is? Did Bo finally get tired of Brian picking on his choice of fancy coffee? Pay attention people, that isn't Brian talking!

Great video as always guys, keep up the great work!

[Mexicobeanpole]

We aren’t in retirement yet, but we have one year cash in savings to pay living expenses. I’d like to have 3 years in cash before we retire.

[jayholiday]

The number gets smaller once you subtract social security

[seanprice]

I have seen this message by several financial people and my goal is to follow it upon retirement age, but the "how do we get there" is something I never see answered. If you have 12-36 months in cash for retirement, are you saving in that bucket throughout your working years, or do you sell equities to fund that bucket upon retirement? It seems that letting your money grow faster in the market and then taking a tax hit when selling would be better than saving month by month and getting less than 1% interest. I really dont know the answer and hoping someone here can show me the way. :) Much appreciated.

[justfine]

If you have an iron clad pension in retirement, then you won’t really need as much in my opinion.

[ThePatriots]

2-3 years of living expenses in cash the first year of your retirement.

[wdeemarwdeemar]

I got more than 36 months like it love it. Not going to change it.

[eddieloujones]

I'll mention something else that cash is valuable for. If you need to manage your income for aca subsidies or Irmaa thresholds you can pull from cash and not bump you income over the thresholds. This is especially true for single people who generally pay more starting at a much lower income than married people.

[cliftonhammock]

Realistically most people don't have extra from month to Not to mention 3 plus

[duneme]

If I own 6-Rental Houses (which I generally fill in a week or two with a change-over!)
Then how many months do I need!

[jamus]

Even though I'm the better part of 2 decades out from retirement I've thought on this myself. I imagine you want to hold enough cash (I like the 36 month number) to be able to get through a bear market where you are not selling or selling minimal assets for losses. I guess that might be a bit too conservative, but seems logical.

[miriamstrauss]

*If you found this comment - I hope you have a productive and successful week and I'm sending you all of the positive vibes!!*

[jw]

Can you all do a quick video on how to Invest your Government PPP. Lets say, for example how would you suggest investing $173, 600? Also, would you advise disclosing the PPP loan to your clients or no? Here's an idea...maybe that number above your head should be 173600....that could work, no? Asking for a friend.

[onlychildren]

Is it weird that when I think about retirement or long term investing I think about war with China? People keep saying not to think short term. But everyone seems to assume that this bull market will go on forever (the virus dip only confirmed that). People seem to think any correction/crash will inevitably end with a recovery. But what if we do go to war? Financially speaking vice stocks perform well during recessions/depressions, but what about a major conflict with countries that hurt us at home?

Am I nuts for thinking this stuff?

[etagrats]

You should have as little as 108 months of cash. Because too much sometimes is never enough.