How Much Cash Should You Keep in Retirement? – 8.6.26

Holding cash can provide peace of mind. However, keeping too much cash in retirement may limit your portfolio’s ability to grow. Over time, inflation can reduce purchasing power, even when your account balance appears unchanged.

In this episode of Healthy, Wealthy & Wise, Tessa Hall speaks with BWFA Financial Planner Tyler Cunningham about finding the right balance between accessibility and long-term growth. Tyler explains why retirees often need less cash in the bank than they expect. Instead, a well-structured portfolio can provide income while helping investments continue working toward future goals.

The conversation also explores retirement income “buckets,” including cash reserves and fixed income investments. Tyler explains how these strategies may help retirees cover unexpected expenses without selling stocks during periods of market volatility. In addition, he discusses why purchasing power risk deserves as much attention as market risk when planning for retirement.

Topics include:

• How much cash retirees should keep
• Purchasing power risk
• Inflation and retirement
• Cash reserves versus emergency funds
• Retirement income buckets
• Managing market volatility

Whether you’re preparing for retirement or already retired, understanding the role cash plays within your financial plan can help you make more informed decisions about your long-term financial future.