Top adviser picks for retirees who want to keep some of their investments in cash
A basic piece of retirement planning advice should not be followed to the letter.
Yes, you should keep a slice of your retirement savings in cash. No, you shouldn’t let it sit in cash in your registered retirement, tax-free savings or non-registered accounts. Cash held in these accounts typically earns zero interest, which is a waste at a time when interest rates are still high enough to more than offset inflation.
In portfolio management, cash is a term to describe securities or deposits that are liquid and safe compared to stocks and even bonds. I recently asked investment advisers on LinkedIn what they use for retired clients keeping some cash in their accounts. The underlying strategy is to use this cash to fund withdrawals from…
