Discover the tips and strategies that will help you achieve your retirement goals.

I'm your host, James Canole, and this is the podcast dedicated to helping you retire well.

It all starts right here on Ready for Retirement.

Hi, everyone, and welcome back to another episode of Ready for Retirement.

I'm your host, James Knoll.

Today's episode, we are going to talk about when do you start drawing down cash from your portfolio.

So we know when we've

talked in different episodes about having a mix of assets. You have some stocks, you have some bonds,

you have some cash, maybe you have some other stuff, and you ideally are following some

withdrawal rule to understand where should you pull money from first. And today's specific question

is when is it time to actually tap into the cash portion

of your drawdown? So this comes from a listener question. The listener's name is Drew. Drew,

thank you for spending this question. Andrew says this. He says, hello, I've been listening to

you for a while now and I really enjoy your perspective. I expect to retire or probably start

working more part time sometime in the next few years.

I'm fairly comfortable with my investments in diversification. My question is concerning cash.

I have enough set aside in cash for a full year of expenses, a buffer to spend from in case

the market downturn, as the experts would say. However, I'm also a firm believer in the advice of don't try to time the market.

That being the case, how do you distinguish between a market downturn and the new normal?

If I'm going to rebalance my portfolio every six months or every three months or whatever

time frame you want, how do I decide when I want to sell securities to rebalance and hold

a year's buffer of cash,

...