Suze Orman doesn't think your retirement plan should depend on the market behaving. If everything drops—and she says it can—she wants you holding cash, not regrets.

On her "Women & Money" podcast, Orman said retirees should keep three to five years of living expenses in cash. Not stocks. Not bonds. Just money you can reach for when everything else is falling apart.

"It's not always that stocks go down and bonds go up," she said. "Sometimes everything can go down." That's why she tells listeners heading into retirement to have enough cash on hand to avoid selling during a crash. "Have at least three to five years of cash sitting somewhere that you can access."

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She said the typical market cycle from peak to recovery usually spans three to five years. "If you really want to be on the safe side, it's five years," she said. "If you want to just play it so that you have at least three years, OK. Maybe you split it and you do four years."

Orman also pointed out that today's interest rates make holding cash less painful than in the past. Even if they fall again, she said, "that money stays there safe and sound."

Build the Cash Reserve Before You Retire

Orman warned that retirees shouldn't wait for a downturn to start thinking about liquidity. "If you know that you're gonna be retiring shortly," she said on the podcast, "take it from the stocks that either have not performed, are not going to perform in your opinion, or bad investment decisions and just do it from there."

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And if your entire portfolio is performing well? "I would probably do it from…if I knew I had good investments, all of them have been performing, I would do a little bit from each one."

Her goal isn't optimization. It's protection—building a buffer you won't have to touch when markets are down.

Why Most Advisors Recommend Less

Orman's advice leans far more conservative than typical retirement guidance. Many financial planners suggest holding one to three years of expenses in cash or near-cash vehicles like high-yield savings accounts, Treasury bills, or short-term CDs.

Some use a bucket strategy: immediate cash for near-term needs, bonds for the medium term, and stocks for long-term growth. This method balances stability with the need for investment returns over time.

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Critics argue that holding five years of cash invites inflation risk and drags on long-term performance. But Orman isn't worried about maximizing return—she's focused on retirees avoiding panic-driven decisions when everything's down.

Tailor the Strategy to Your Income and Risk

There's no perfect number for everyone. If your expenses are mostly covered by Social Security, a pension, or annuity income, you may not need a full five years in cash. But if you're pulling regularly from investments, Orman's approach gives you breathing room.

A financial advisor can help you determine the right amount to keep liquid and how to allocate it—whether that's in cash, laddered CDs, or a blend of stable, accessible accounts.

Orman's message is simple: control what you can. Don't rely on the market to hold up just because you're ready to stop working. If you're not forced to sell, you're not forced to lose. That's what the cash is for.

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