Suze Orman says retirees need this much cash saved — and it’s more than you might expect

Core Insights - The article emphasizes the importance of not solely relying on 401(k) or IRA accounts for retirement, as market volatility can significantly impact these investments [3][4] - Personal finance expert Suze Orman suggests having a cash reserve of three to five years' worth of living expenses in a low-risk account to mitigate market risks [4][5] Group 1: Retirement Planning - The article discusses the complexity of determining the amount needed for a comfortable retirement, highlighting that costs can accumulate quickly due to various factors such as healthcare and housing [1] - Orman advises against depending solely on retirement accounts tied to the stock market, as market fluctuations can lead to unexpected financial challenges [3] Group 2: Cash Reserve Strategy - Orman recommends maintaining a liquid cash fund that is not tied to the market, which can provide financial security and prevent the need to sell investments at a loss during downturns [4] - The suggested cash cushion can help individuals navigate emergencies and take advantage of investment opportunities when they arise [6]