The theme this week on the Retirement Quick Tips Podcast is: Recession coming in 2022?

Today, I’m talking about how much cash you might want to have when the next recession comes knocking. 

At a bare minimum, you’ll want about 6 months worth of monthly expenses on hand for emergencies. So if you spend $5,000/month, you’ll want $30,000 in cash, just for emergencies. 

In addition, to protect yourself in the next market downturn, you’ll want to keep another 12 months worth of your portfolio withdrawals on hand. Why? Well the average bear market lasts 14 months. Some are shorter, and some of the deeper ones are even longer. So if you can stop your portfolio withdrawals for a year while the stock market is reeling and we’re in the midst of a recession, you can sleep better at night and not make the problem worse. So 12 months of suspended withdrawals from your investment portfolio should be enough, even if the downturn lasts a little longer than that. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance