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Suze Orman tells retirees to keep 3 to 5 years in cash
Orman said retirees should not rely on a single account tied to stocks and instead build a liquid, low-risk cash reserve to avoid a sharp downturn.
Suze Orman warned that retirement portfolios may not be protected even if investors plan to diversify across accounts, saying there are periods when both stocks and bonds can fall at the same time, according to Yahoo Finance.
On her Women & Money podcast, Orman said retirees should not rely only on a 401(k) or IRA, because both are closely tied to market swings and could drop when retirees need stability.
Orman urged a defensive approach, recommending that people keep three to five years of living expenses in a liquid, low-risk account such as a high-yield savings vehicle.
The article also notes Northwestern Mutual research finding the average American expects to need $1.46 million to retire comfortably, while acknowledging many households are still short of that goal.