Quoted at Barron’s: How a “cash stash” can offer retirees peace of mind

A recent article by Neal Templin at Barron’s spotlighted how having a “cash stash” can provide retirees with peace of mind in an era of gyrating markets. In the article, recent retiree and Padden Financial client Tim McDermott shares how this advice lets him sleep well at night:

When the market crashed last spring amid coronavirus fears, retiree Tim McDermott didn’t fret.

The 58-year-old, who retired in November 2019 after running a derivatives exchange, keeps more than 40% of his assets in cash and near-cash investments.

“We could probably go 10 years without selling any stock,” says McDermott, who lives in suburban Chicago. “I feel pretty comfortable when I go to sleep.”

McDermott is among retirees who carry cash to protect themselves from market gyrations. “I want people to live the lives they’ve always dreamed of,” says Sheila Padden, McDermott’s financial advisor.

“It’s hard to do that if you’re worrying about the market all the time.”

Click here to view a PDF of the full Barron’s article.