FFeddecision

Should retirees stay in cash?

Updated July 24, 2026 · refreshed automatically every 6 hours

Today’s data is unusually kind to cash: 3-month T-bills pay 3.78%, about 1.1 points above expected inflation — a genuine real return, which was not true for most of the 2010s.

The risk to an all-cash approach is that this can end: if the Fed cuts, floating yields follow it down within months. Locking a portion — a 1-year CD at 4.10% or a 2-year Treasury at 4.21% — keeps part of today’s rate alive through a cutting cycle. The market currently leans toward higher rates, which favors staying liquid.

How much to keep liquid versus locked depends on personal spending needs and time horizon — this page shows today’s numbers, not personal advice. The simulator lets you test both sides under any rate path.

Run it with your own numbers →

More questions

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Feddecision translates market data into plain English. This page is generated automatically from today’s data and is general education — not personalized financial, investment, or tax advice.