How much downturn runway can a cash reserve buy?
See how many months your cash could cover the part of spending that normally comes from investments.
How long could near-term spending avoid a forced portfolio sale?
Move one slider at a time. The numbers and picture update together.
Dependable income continues to fund part of the household while the reserve covers the remaining gap.
This leaves out interest, rising prices, taxes, a market recovery, required withdrawals, and a refill plan. Count cash as part of your full mix of investments.
Use cash for the part savings must cover
Social Security, pensions, rent, and other steady income may continue during a market drop. Cash only needs to cover what those checks do not.
Test normal spending and a lower bad-year budget. Pausing some wants can make the same cash last longer.
Decide when the reserve is used and rebuilt
Cash without a rule may sit unused or tempt you to guess what the market will do. Decide when to spend it and when to fill it again.
Count cash as part of all your investments. Leaving it off the list can hide how careful your mix truly is.
Verify before you act
These official resources provide background for the concepts in this illustration: