This is a great question. Are those 5 years of expenses expenses that aren't covered by your pension and SS? Do you need 5 years of uncovered expenses in cash? If you had everything in a total stock index fund, would your retirement be able to handle a significant bear market?If you have a pension and SS income, do you really need five years of expenses in cash within a taxable account?
If you could weather a recession and still have "enough", then you may not need that much cash. If you do need that cash, then as was suggested, hold the cash in a tax-advantaged plan and keep tax efficient investments in your taxable.
Statistics: Posted by WeakOldGuy — Tue Dec 31, 2024 2:28 pm