Retirement Done Right w/ David & Pat

How much cash should you keep in retirement? Most retirees hold too much, or hold it in the wrong place, and quietly lose money to inflation and taxes. In this episode of Retirement Done Right, David Rath, CFA, CMT and Pat Kalish, CFP break down how much cash retirees actually need, where to keep it, and how the interest you earn on it can push up your tax bill. 

In this episode you'll learn: 

- The rule of thumb for cash: 3–6 months for pre-retirees, 12–24 months for retirees, and why most people think in round numbers instead.

- Why cash is one of the few "investments" almost guaranteed to lose purchasing power 

- How Social Security and pensions reduce the amount of cash you need 

- Where to keep cash: checking vs. high-yield savings vs. CDs vs. money market funds vs. Treasury bills 

- Why T-bill interest is exempt from state and local income tax 

- How taxable interest can increase Social Security taxation and trigger Medicare IRMAA surcharges 

- Using a home equity line of credit (HELOC) as a backup emergency fund 

- A simple 5-step cash review you can do this year 

QUICK ANSWERS 

How much cash should a retiree keep? A common guideline is 12–24 months of expenses, but the right amount depends on how much of your income is guaranteed (Social Security, pensions) versus coming from your portfolio, and how much cash you need to sleep at night. 

Where should retirees keep their cash? Keep a minimal amount in checking for bills, your emergency fund in a high-yield savings or money market account, and money for known expenses 6–12 months out in CDs or Treasury bills. 

Is interest on cash taxed? Yes. Bank and money market interest is taxed as ordinary income, which can raise your bracket, make more of your Social Security taxable, and increase Medicare premiums. Treasury bill interest is federally taxable but exempt from state and local tax. 

CHAPTERS 

00:00 Welcome back, Pat 

01:13 How much cash should a retiree keep? Rules of thumb 

02:27 Pros and cons of holding cash (the inflation problem) 

04:20 The "head on a pillow" strategy 

05:31 How Social Security and pensions change your cash needs 

08:19 Why cash decisions can't be made in a silo 

10:41 Where to hold cash now that it pays interest 

13:51 Checking vs. high-yield savings vs. emergency fund 

14:54 Treasury bills: state tax benefits and price fluctuation 

17:09 Online banks vs. brick-and-mortar banks 

18:45 Hidden fees and withdrawal limits on savings accounts 

19:55 Taxes on cash interest: Social Security, IRMAA, Roth conversions 

22:17 Using a HELOC as a safety net 

25:40 Give every dollar of cash a job 

26:22 Your 5-step retirement cash checkup 

🌐 Learn more: https://contwealth.com 

ABOUT THE HOSTS David Rath, CFA, CMT is CIO at Continuum Wealth Advisors. Pat Kalish, CFP is a financial planner at Continuum. Continuum is a fee-based fiduciary RIA in Saratoga Springs, NY, helping people within a few years of retirement make it work. 

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Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

A few weeks back we walked through a Treasury Department announcement about increased bond purchases and what it might be signaling. This is the follow-up — and the story has moved in a direction worth sitting with. The Treasury raised its stated purchases again, and this time the bond market didn't like it. Where the first increase was taken as a sign of willingness to support the market, the second seems to have been read as something closer to necessity. Yields have climbed to levels not seen since 2007, which is a comparison nobody makes casually, though we want to be clear we aren't predicting a repeat of what followed that year.

The detail we keep returning to isn't the purchase figure at all. Incremental increases are small against the size of the bond market. What matters more is the roughly $1 trillion reportedly sitting in the Treasury's general account and available if needed — the difference between a signal and an actual capability. Meanwhile, rising yields serve as a live test of whether the stated willingness to buy is genuine.

From there we step back, and this is where the conversation becomes useful well beyond the news cycle. From 1981 to 2021, exactly forty years, bonds were in a sustained bull market that carried rates from double digits down to near zero — and in parts of the world, below zero, where investors effectively paid for the privilege of lending. Anyone whose adult financial life took shape inside that window absorbed a particular sense of what normal looks like. Rates bottomed five years ago, and the direction since has been the opposite. We stop short of declaring a long-term bear market in bonds, but the evidence is accumulating. We also work through something many investors find genuinely confusing: how the Federal Reserve and the Treasury can end up pulling opposite ends of the same yield curve in opposite directions, since one influences long maturities and the other sets short-term rates.

We close on perspective, which is really the point of the whole discussion. You won't remember any particular market day twenty years from now. What determines outcomes over time is portfolio structure and major trends, not individual announcements — which is why we diversify across investment styles rather than just investments, and why we treat uncertainty as a permanent feature to build around rather than a temporary condition to wait out. We prepare and react. We don't predict.

Resources: Visit contwealth.com for more articles, guides, and tools to help you build a confident retirement.

Disclaimer: The information provided is for educational and informational purposes only and does not constitute investment advice and should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

Continuum Wealth Advisors, LLC ("Continuum") is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure. Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal.

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Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

The Treasury Department wants long-term interest rates lower. The Federal Reserve appears headed toward higher short-term rates to fight inflation. That tension has real consequences for retirement portfolios.

In our latest commentary, Continuum Wealth Advisors breaks down what the Treasury's long-dated bond purchases and Fed Chair Kevin Warsh's Jackson Hole remarks could mean for bond investors — plus why rising federal interest costs (nearly 20% of tax revenue) are shaping the conversation.

As a fee-based fiduciary RIA in Saratoga Springs, NY, we help retirees and pre-retirees understand how shifts like these affect their income plan.

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Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

In this episode of Retirement Done Right, hosts David Rath and Pat Kalish explore a powerful quote from a real retiree: "The first year was terrifying—worrying about running out of money and what I was going to be doing with my life. But I've settled in nicely, year three."

This episode unpacks the two biggest challenges retirees face: the financial fear of running out of money and the emotional struggle of losing your identity.

In this episode, we cover:
• Why retirement anxiety hits even financial professionals who "know" they have enough
• How to shift from thinking about assets to thinking about income (and why it matters)
• The importance of creating a structured retirement paycheck
• Why you need to retire to something, not from something
• The hidden threat of sequence of return risk in your early retirement years
• The most common regret: "I wish I did it sooner"

Whether you're years away from retirement or already there, this episode will help you understand the emotional and financial transition—and how to navigate it with confidence.

Resources:
Visit contwealth.com for more articles, guides, and tools to help you build a confident retirement.

Disclaimer: The information provided is for educational and informational purposes only and does not constitute investment advice. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. Continuum Wealth Advisors, LLC is a registered investment advisor. Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal.

Follow Us

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Our Home Base

• Continuum Wealth Advisors

Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

The biggest mistake retirees make? Not having a tax plan. By not having an appropriate tax strategy, it could cost you hundreds of thousands of dollars over a 30-year retirement. From an investment standpoint, complacency is the enemy—being a buy-and-hold investor is easy during a bull market, but try it when the market's down 35%. The early years of retirement create a window for Roth conversions and 0% capital gains that many miss. Have a plan before things go south.

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Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

In this episode of Retirement Done Right, hosts David Rath and Pat Kalish tackle a question most people don't think to ask: Should you change your financial advisor when you retire?

The skills that helped you accumulate wealth—growing your nest egg, making deposits, riding out market ups and downs—are not the same skills needed to safely generate a retirement paycheck, minimize taxes, and coordinate Social Security and Medicare.

In this episode, we cover:
• Why the "descent" (decumulation) is more dangerous than the "ascent" (accumulation)—and what that means for your money
• The critical questions every retiree should ask their advisor (and the red flags to watch for)
• Why tax strategy is an investment, not just a cost—and how to avoid surprise tax bills
• The devastating impact of sequence of return risk on a retirement portfolio
• Why coordination between your advisor and CPA is essential (and what happens when it's missing)

Whether you're years away from retirement or already there, this episode will help you evaluate whether your current advisor is truly equipped to guide you through the next phase of your financial life.

Resources:
Visit contwealth.com for more articles, guides, and tools to help you build a confident retirement.

Disclaimer: The information provided is for educational and informational purposes only and does not constitute investment advice. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. Continuum Wealth Advisors, LLC is a registered investment advisor. Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal.

Follow Us

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• LinkedIn

Our Home Base

• Continuum Wealth Advisors

Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

5 Key Takeaways:

1. Everything Is Connected: Oil prices, interest rates, gold, and stocks don't move in isolation. Understanding how they interact (intermarket analysis) is essential for navigating volatile periods.
2. Don't Let Headlines Drive Decisions: Emotional reactions to breaking news are the fastest way to make costly investment mistakes. Have a plan before markets get rocky.
3. Gold Isn't a Simple Inflation Hedge: In the short term, rising interest rates increase the opportunity cost of holding gold (a zero-yield asset), which can pressure prices even during inflationary times.
4. Risk Is Unavoidable—But Manageable: You can't eliminate risk, only transform it. A 60/40 portfolio still lost over 35% in 2008. A proactive risk management strategy aims to limit drawdowns so retirees don't have to cut spending during downturns.
5. Prepare, Don't Panic: The best time to review your risk tolerance and portfolio structure is beforevolatility hits. Once markets are in turmoil, stick to your process and avoid making emotional changes.

Disclosure: The information provided is for educational and informational purposes only and does not constitute investment advice and should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

Continuum Wealth Advisors, LLC ("Continuum") is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure. Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal.

Follow Us

• YouTube
• LinkedIn

Our Home Base

• Continuum Wealth Advisors

Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

Q1: Can AI tools like ChatGPT or Gemini build a better retirement portfolio than a human advisor?
A1: Not yet. While AI can generate a solid, textbook 60/40 portfolio using low-cost Vanguard funds, it lacks the ability to understand your personal situation, ask follow-up questions, or provide the ongoing guidance needed during market stress.

Q2: What happened when you asked four different AI models to build a portfolio for a 62-year-old retiree?
A2: The results were surprisingly similar—all recommended broadly diversified portfolios of 50-60% stocks and 40-50% bonds, with a strong bias toward Vanguard index funds. The differences were minor, like whether to include a small allocation to emerging markets.

Q3: What are the biggest risks of relying on AI for investment advice?
A3: AI can't ask clarifying questions about your risk tolerance, tax situation, or life goals. It also has a high error rate in multi-step processes—one study found AI was incorrect 85% of the time in complex scenarios. Trusting your life savings to a tool that misattributes quotes is risky at best.

5 Key Takeaways:

1. AI Gives Textbook Answers, Not Personalized Plans: Every model produced a standard 60/40 portfolio using Vanguard ETFs—a fine starting point, but not tailored to anyone's unique financial life.
2. The Human Element Matters: A computer can't ask why you panicked in 2008 or how market volatility feels when you're actually taking distributions. Those conversations shape truly appropriate portfolios.
3. Risk Tolerance Is More Than a Multiple-Choice Question: True risk assessment comes from understanding your behavior during past market stress—something AI simply cannot replicate.
4. AI Hallucinates—A Lot: In multi-step processes, AI tools can be wrong up to 85% of the time. Even simple tasks like sourcing quotes required double-checking. Your retirement isn't worth that gamble.
5. Coordination Is Key: Investing is just one piece of the puzzle. A human advisor coordinates your portfolio with tax planning, Social Security, Medicare, and distribution strategies—all of which AI ignores.

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Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

5 Key Takeaways:

1. Flexibility is the Name of the Game: The fear of "overfunding" a 529 is gone. Unused education savings can now kickstart a child's (or your own) Roth IRA, providing a powerful head start on retirement.
2. The 15-Year Rule is Critical: The 529 account must be open for at least 15 years before any conversions can occur. This is a long-term strategy, not a quick fix.
3. Earned Income Requirement: The beneficiary must have earned income (from a job) equal to the amount being converted in that year, aligning with standard Roth IRA contribution rules.
4. No Income Phase-Outs: This strategy works even if your income is too high to contribute directly to a Roth IRA—making it a powerful backdoor for high earners willing to plan decades ahead.
5. The Power of Compounding: $35,000 invested at 7% growth over 30 years grows to over $250,000—and in a Roth IRA, those withdrawals can be completely tax-free in retirement.

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Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.

Q1: What does a "Set It and Forget It" investment strategy actually mean for retirees?
A1: It means you determine an initial asset allocation, rebalance at standard intervals (quarterly or annually), and resist the urge to make emotional changes based on market noise or hot stock tips.

Q2: Why do most investors underperform the very funds they're invested in?
A2: It's called the "behavior gap." Investors tend to buy when markets are high (greed) and sell when markets are low (fear), leading to underperformance of 3-4% annually compared to the S&P 500.

Q3: Can a purely passive strategy work for someone already in retirement?
A3: Yes, it can work, but it requires immense emotional discipline. The bigger risk is the "sequence of returns risk"—a major market downturn early in retirement can permanently damage a portfolio's longevity.

5 Key Takeaways:

1. The Behavior Gap is Real: Human emotions (greed and fear) are the biggest threat to a passive strategy. Investors who check their portfolios less frequently tend to do better.
2. Sequence of Returns Risk Matters: Retiring into a bear market (like 2000 or 2008) requires an active strategy to manage withdrawals and protect your portfolio from being depleted too early.
3. Change is Inevitable: Your personal life, tax situation, and global market dynamics change over decades. A strategy set in stone at 65 may not fit your life at 75 or 85.
4. History is on Your Side (But Not a Guarantee): The S&P 500 has produced positive returns in roughly 75% of years since 1928, but there have been painful lost decades (2000-2010) where passive investors struggled.
5. The Goal is Peace of Mind: The best investment strategy is one you can stick with through market cycles. For many, that means having a trusted co-pilot to navigate uncertainty so they can actually enjoy retirement.

Continuum Wealth Advisors is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

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Disclosure

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status, or investment horizon. You should consult your attorney or tax advisor. 

Continuum Wealth Advisors, LLC (“Continuum”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Continuum and its representatives are properly licensed or exempt from licensure.