Cash Reserve Calculator

How much cash should you keep on hand in retirement? Enter four numbers and find out.

Why a cash reserve matters in retirement

Markets fall, and withdrawals during a downturn can do lasting damage, especially early in retirement. This is known as sequence of returns risk: selling investments after losses can leave less money invested to benefit from the eventual recovery.

Keeping a cash reserve can help you avoid selling investments when markets are down. This calculator estimates how much cash may be appropriate for your situation and whether your current reserve is enough.

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Everything you expect to spend in a year once you have retired.
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Social Security and pensions — income that arrives whatever the market does.
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Checking, savings, money market funds, CDs and Treasury bills.
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The more you hold in stocks, the further your portfolio can fall in a downturn and the longer it takes to recover — so the more cash you want on hand.

More retirement tools

Portfolio Rebalancing Calculator
How far each asset class has drifted from target.
Investment Fee Drag Calculator
What an investment fee costs you in dollars.
RMD Calculator
This year's required withdrawal from your IRA.

This calculator applies a general rule of thumb and is not investment advice. Results are estimates and do not reflect factors such as taxes, inflation, or your specific withdrawal strategy.