Buttress a Nest Egg With a Cash Stash

That cash bucket will come in handy if your riskier accounts, such as stocks or bonds, are in a bear market.

(Image credit: kali9)

As you enter retirement and start tapping your savings, most financial advisers recommend that you keep anywhere from one to three years’ income in cash—safe, easily liquid investments, such as money-market mutual funds, bank money-market accounts or certificates of deposit. Your longer-term investments, such as bonds for income and stocks for long-term gains, should be held in separate buckets.

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John Waggoner
Contributing Writer, Kiplinger.com
John Waggoner has put personal finance and investing into plain English for more than three decades. He was a senior columnist for InvestmentNews and, prior to that, USA TODAY's personal finance columnist for 25 years. He has written for Morningstar, The Wall Street Journal, and Money magazine. Waggoner has also written three books on finance and investing. He has an undergraduate and graduate degree in English literature and is working on his Certified Financial Planner designation. He lives in Vienna, Virginia.