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Yet some retirees might be underestimating theamount of cashto keep on hand in 2024 and beyond.
How Much Cash To Hold Onto
I personally do not think world events should dictate cash levels.
Essentially it then becomes a game of predictions on when to raise or lower cash levels.
Nobody can reliably predict the future, whether it be markets, economics, politics, or inflation.
One common approach is to hold 2-3 years worth of expenses in cash, he said.
A simple calculation can be run to determine the inflation-adjusted amount over that period.
That may be agood starting pointfor the initial cash allocation.
If a retiree is concerned about surprise expenses soon, they may consider adding an additional buffer of cash.
Instead, having a big cash cushion can prevent you from selling low.
Its arelatively conservative allocation, said Sneen.
This happened in 2008.
A non-retiree doesnt have this concern because they still have income from their job.
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