As retirement draws near, one of the smartest moves you can make is to build a reliable cash buffer. I’ve always believed that while money can’t buy happiness, it’s a powerful tool for reducing stress—especially when life throws an unexpected curveball. Setting aside at least six months of income in liquid, easily accessible accounts means you won’t have to scramble or make panicked financial decisions if health issues, home repairs, or market dips come up. Some financial experts even recommend holding up to a year’s worth of essential expenses for greater flexibility and peace of mind. This reserve isn’t about chasing the highest yields—it’s about protecting your principal and ensuring access when you truly need it. In those crucial five years before retirement, I suggest keeping this cash separate from your daily accounts, reviewing it annually, and using it so you’re not forced to dip into investments during stressful times. Having a well-thought-out plan like this is one way to put yourself on the path to a less stressful, more secure future.
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