FB101,Welcome to the Fool.The cash and near-cash guidelines for retirement are pretty much what you say with one exception. It needs to be oriented toward your cash contributions above your pensions, SSA, etc.If your pension and SSA come to $50,000 a year and your expenses are $60,000, you need to cover $10,000 per year from savings. That is the cash you need to ladder as a minimum.I normally keep 6 months of full expenses in passbook savings(at .01% or something). I exclude this from any portfolio planning since I consider it "spent" from the portfolio. During the 2007-2009 downturn, this was sufficient to hold us without requiring a sale of stock to pay bills.I replenish the savings from dividends and from occasional sales to trim positions, etc.If you are within 5 years of retiring, start building your cash position, maybe using a CD ladder, where each year you buy a 5 year CD for the amount you believe you will need.Gene
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