How Much Should I Have In Bonds/Cash/etc. In Retirement?

We explore how much safe money you should maintain throughout retirement for financial security and peace of mind without sacrificing long-term growth potential. Instead of using cookie-cutter rules, we break down a personalized approach to balancing safety and growth in your retirement portfolio.

• Start with your annual spending needs to calculate your safe money base
• A good starting point is having 5 years of living expenses in safe assets
• Your safe money requirements should decrease as guaranteed income sources (Social Security, pensions) begin
• The 60/40 portfolio rule doesn't work for everyone - your allocation should reflect your specific situation
• As your portfolio grows, the percentage allocated to safe money typically decreases
• Too much safe money risks losing purchasing power to inflation over time
• Consider your emotional "sleep number" - how much safe money you need to feel secure
• Factor in upcoming expenses like healthcare, travel, and home renovations
• Cookie-cutter planning fails because everyone's situation is unique and dynamic

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Ari Taublieb, CFP ®, MBA  is the Chief Growth Officer of Root Financial Partners and a Fiduciary Financial Planner specializing in helping clients retire early with confidence.