Why Cash Matters Near Retirement and FIRE

I explain sequence-of-returns risk and why a market downturn early in retirement can affect a portfolio that is funding withdrawals. Using that scenario, I discuss how cash may help reduce the need to sell stocks during a decline.

- Sequence risk when withdrawing from a portfolio
- Cash as a buffer during market downturns and stock recovery
- The discussion focuses on the role of cash; it does not provide specific allocation amounts or a detailed portfolio plan.

For people nearing retirement or FIRE, this overview offers a reason to reassess their cash reserves and consider how they might use them during a downturn.