Many things change when we retire. There’s the obvious change–we stop working. And there’s a less obvious change–how we approach cash.

Before retirement, we might have an emergency fund of three to six months’ worth of living expenses. After retirement, we need cash for so much more. The ideal cash reserve depends on individual circumstances, including income stability, potential emergencies, and comfort level during market volatility.

In this episode, I’ll walk through the seven main reasons retirees hold cash. For each, we’ll look at how much cash one should have for each reason and the type of account best suited to hold the cash.