Retirement Guide Splits $100,000 Into Cash, Income and Growth to Beat 2.5% Inflation

3 articles · Updated · SmartAsset · Jun 28

$100,000 in retirement savings should be divided across cash, income-producing assets and long-term growth investments rather than left idle, the guide says.
At 2.5% annual inflation, that sum must reach $128,008 in 10 years just to preserve purchasing power, making cash alone a hidden risk despite its stability.
Cash is reserved for emergencies and near-term needs, while Treasuries, CDs, dividend stocks and TIPS target income; diversified stock funds and REITs are positioned for longer-term growth.
High-yield traps and concentration risk are flagged as key mistakes, with junk bonds, variable annuities, private placements and non-traded REITs cited as potential threats to liquidity and capital.
The broader message is that retirees should balance access, income and inflation protection, using diversification to limit damage from any single downturn.

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