The finance media personality and author explains a key plan.
Transcript:
Suze Orman: Well, you know, you should always in your retirement accounts, especially when you are retired, you need to have 3 to 5 years of expenses in cash. So you need to total how much income do you know you have coming in with social security, whatever it may be, income from your stocks and everything. And how short are you of your actual expenses, whatever that deficit is, and it might be the entire amount that has to be in cash within your retirement account in a money market account because you do not want to be selling stock when the markets have gone down significantly just to pay your bills. So to buffer you from a really downward moving in the stock market, that’s what you need to do. Why 3 to 5 years? Because it takes three years to five years from the top of the market to the bottom of the market, back up to the top again.
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