July 9, 2015
Money: Here’s How Much Cash You Need in Retirement
Exactly how much you will need depends on your individual circumstances.
It turns out that if you are generating a lot of cash then you might not need all that much cash in retirement, but if cash seems in short supply, especially compared to your expenses, then you may actually need more cash. Shocking.
Here's a rule of thumb that I often use. I keep more cash on hand during months when I expect a lot of unexpected expenses. I'd tell you exactly how much cash that tends to be, but it really depends on my individual circumstances. For example, in months when I expect an unexpected earthquake to cause serious unexpected structural damage to my home, I will often keep an additional $50 on hand just for the extra peace of mind.
Why do so many financial news articles make me feel like I'm reading Astrologer Weekly? How much cash will I need in retirement? Nobody the f%^k knows. Seriously. And yet, week after week, year after year, we're continually told how much we will need. Go figure.
Here's a crazy thought. Keep twice as much cash as you think you'll need and hope Murphy's Law doesn't kick in, either for yourself or the world in general. Since 2000, that law sure has tried to gain a foothold. What can go wrong often will.
Well, it depends on whether you live in Greece or not, doesn't it???
ReplyDeleteOr some country that might end up like Greece.
O.M.G.
Start digging holes and burying cash!!!
We'll want to bury all that cash in a nice dry climate in a place where nobody would expect.
ReplyDeleteThat's why I'm heading over to Iraq with a big grocery bag of crisp $100 bills. Once I get through airport security, what's the worst that could happen?
Hahaha! :)