How Much Cash Should I Keep in the Bank When I'm Retired (and When is Cash a Liability)?

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Cash feels safe—until it quietly starts working against you. In this episode of The Perfect Retirement Plan?, Phillip Smith of Tidepool Wealth Strategies explores why “cash is king” can be both comforting and costly for people about to retire or recently retired. You’ll learn how too much cash can lose value to inflation, trigger extra taxes, and delay smart decisions like investing or Roth conversions. Phillip explains how to find your personal “sleep-well number”—the right balance between liquidity, growth, and peace of mind.

Using a simple tidepool analogy, he shows how cash acts like still water: it protects you during low tide but stagnates if it never refills. Whether you just sold a business, rolled over a 401(k), or are sitting on a large savings balance, this episode helps you build a plan that keeps your money working for you. Perfect for searches like “how much cash to keep in retirement,” “inflation and retirees,” or “retirement income strategy.”

Chapters

00:00 Cash is king… until it’s not
00:23 Why retirees love cash—and why that’s risky
00:45 Three key ideas for a healthy cash balance
02:07 Inflation: the quiet thief of purchasing power
03:05 The tax drag dilemma—when 4.5% becomes 3.5%
03:33 The liquidity trap: waiting for “the right time”
04:20 How much cash is enough? A simple framework
05:12 The tidepool analogy—balance vs. stagnation
06:01 Large cash positions and redeployment planning
06:51 Three action steps to optimize your cash flow
07:42 Closing: make your cash serve your plan

Action Step:
Review all your cash accounts, calculate your “sleep-well” number, and put the rest to work through a thoughtful, tax-smart income strategy.

Explore more at TidepoolWealth.com and watch companion videos on our YouTube channel @TidepoolWealth, where we help professionals in Oregon and the Pacific Northwest retire with clarity, confidence, and purpose.

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Thanks for tuning in to this episode of The Perfect Retirement Plan, and remember: it's not about having the smartest financial advisor, the most money saved, or the highest probability of retirement success. The perfect retirement plan, for you – is the one you act on.

Phillip Smith, CRPC AIF | Financial Planner
Tidepool Wealth Strategies
450 Country Club Road, Suite 350 | Eugene, OR | 97401

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Additional Disclosures:
The opinions contained in this material are those of the author, and not a recommendation or solicitation to buy or sell investment products. This information is from sources believed to be reliable, but Cetera Wealth Services, LLC cannot guarantee or represent that it is accurate or complete.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.