How Much Cash you Should Hold In Retirement

[@steveedinger9869]

My opinion, you should have at least three years of your normal income on hand minimum!

[@carlrobertsifa]

Good advice Steve. This will definitely be appropriate for many.

[@chqshaitan1]

good video, what are your thoughts for someone in the accumulation phase over provisioning their emergency fund in the stock market. Ie, if the money was held in cash, it would be for illustration purposes be 15k, but the money is invested into a global equity etf with an average volatility of 15% (msci world for the last 20 years) is 20k. and they had sufficient credit cards available for immediate acces with a 1/2 month intrest free period. over time the gains(all things being equal) would outstrip inflation, and volatility would become less of a concern, as the gains would outstrip any issues (ie sequencing risk)

[@rickdunn3883]

Thanks for this. Some thoughts: The cash value should also include an emergency fund (i.e. new car transmission, new roof). The amount of cash is really to mitigate sequence of returns risk, is it not? SOR Risk can also be mitigated by other means.

[@carlrobertsifa]

Great points Rick.

[@jamestrent-nw9zb]

Apart from buffer savings, one thing which I dabble in is buying items which need renovation and restoration. I have the tools and equipment for this and plenty of experience acquired over the years before retirement. Of course you have to be careful and selective in what you buy, but if you have sufficient skills you can turn a handsome profit!

[@andypandy9931]

You are certainly right about pension values fluctuating daily. I have been monitoring mine over the past few months nd it gains or loses thousands every day.

[@carlrobertsifa]

As long as you are invested appropriately remember the declines are temporary.