How Much Cash Do You REALLY Need in Retirement?

Video Description

0:00 – Intro 0:43 – What Brokerages Recommend 1:21 – Detailed Example – Individual and Couple 2:45 – Benefits of a Cash Buffer 2:52 – Downturn Protection 3:21 – Sequence of Returns Risk + Example 4:45 – How to Protect Yourself 5:02 – Psychological Comfort 5:18 – Trade-Offs: Opportunity Cost, Inflation, Replenishment 6:24 – The Balancing Act 6:44 – Determining Your Buffer and a Bucket Strategy 8:39 – Regularly Review and Adjust 9:11 – Equity Exposure 10:55 – Bloopers How much cash should you keep on hand in retirement? In this video, we break down exactly how to calculate your retirement cash buffer using real-life examples—and explore why major firms like Fidelity and Vanguard recommend keeping 1 to 5 years of essential expenses in cash or cash-like accounts. You’ll learn how to protect your portfolio from market downturns, avoid sequence-of-returns risk, and build a three-bucket strategy that balances safety and growth. Whether you’re retiring soon or already there, this is a must-watch for smart retirement planning. Some of my favorite books: https://amzn.to/3KF3tlr Camera & equipment I use: https://amzn.to/3Z20lof Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research. Join the family & subscribe to my channel here: https://www.youtube.com/c/ErinTalksMoney Thanks for watching, I appreciate you!