This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.

This is why the first pillar in our Retire With Purpose planning framework is “Liquidity”; because having fast access to cash for those unexpected moments can be your emotional and financial safety net. However, what happens if that reserve falls short?

What You Should Know: Previous podcast guest Christine Benz ranks sources of liquidity from best (least harmful to your financial future) to worst (think high costs, taxes, or risk). Whether you're a retiree with a solid nest egg or preparing for the transition into retirement, understanding your options before a crisis hits can help you make more confident decisions.

Highlights Worth Noting:

📌 Some of the best choices include your own emergency fund (retirees may want to cover 1–2 years of anticipated portfolio withdrawals), taxable investments or Roth IRA contributions (easy to access, less disruptive to long-term plans), and life insurance cash values.

📌 Depending on your financial situation, some less ideal options can include 401(k) loans and reverse mortgages (may reduce savings or come with complex terms), as well as margin loans and credit cards (carry high risk and can lead to greater financial trouble down the line).

Bottom Line: When you know the smartest places to turn for cash in an emergency and have a strategy built into your financial plan for doing so, you’ll feel empowered to weather life's surprises without compromising the retirement you've worked so hard for.