‘Everything can go down’: Suze Orman warns stocks and bonds aren't enough to survive retirement. Here's what she says you need instead

“When you go to take money out every single year, you usually have to sell something to do so,” Orman said on her Woman & Money podcast (1).

For years, the backbone of a standard portfolio has been the 60/40 split between stocks and bonds. The thinking goes that when one drops the other holds steady or edges up, balancing things out over time. However, this isn’t always the case.

“It’s not always that stocks go down and bonds go up, or bonds go down and therefore stocks go up,” Orman said. “Sometimes everything can go down.”

This is why Orman is in favor of not stopping at your “magic number” for your retirement accounts. Getting there is only one part of the puzzle.

Even then, this magic number is climbing higher every year. Northwestern Mutual found in 2026 that the average American thinks they’ll need $1.46 million to retire comfortably — up $200,000 from 2025 — though most are far behind that goal (1). Blindly investing in the stock market without building a safety net can be a problem if you’re planning to retire at a specific age, and the market just so happens to be down.

If you’re looking for a solid starting point, here are Orman’s rules that could encourage a good night’s sleep, though her own magic number may surprise you (3) — especially compared to the $1.46 million golden ticket.

Orman’s magic number

Orman’s advice is all about playing defense — especially in unpredictable markets.

Her first rule: Don’t rely on your 401(k) or IRA alone. Both are tied closely to stocks, and the market doesn’t always play nice.

Translation? If your retirement plan is riding the market rollercoaster, you could be in for a sharp drop when you’re hoping for smooth sailing.

To soften the blow, Orman recommends stashing away three to five years' worth of living expenses in a liquid, low-risk account — like a high-yield savings or a checking account. This is substantially higher than what most financial advisor recommend, which is often three to six months of expenses.

Orman’s logic is simple. In the event of a large market downturn it takes years for stocks and bonds to fully recover, not months.

That means your retirement savings should be higher than that $1.46 million, provided you believe it aligns with your living situation. If you spend $50,000 a year in expenses, that means adding between $150,000 and $250,000 to your retirement target so you have the flexibility to time your exit.

Orman’s recommended “just-in-case” cash fund should not be tied to the market. That way, you’re not forced to sell investments at a loss just to cover rent or buy groceries.

“If you really wanna be on the safe side, it’s five years,” Orman said.

It’s worth noting that Orman has a bullish outlook on the American market for 2026. On an episode of her podcast from January 2026 (4), she said, “I think the United States is still the place of the most extraordinary opportunity out there … You have got to leave politics out of the decisions that you make with money.”

She noted that while many investment advisors are looking overseas for investment stability, she believes the U.S. market will remain strong in 2026. “I’m going to keep my money at home. Just that simple.”

If you feel that this is your year to pull your finances together, here’s how to begin building an emergency fund.

How to build your cash cushion

Building a solid cash cushion isn’t just about peace of mind. Having easily accessible funds can help you navigate emergencies, smooth out your cash flow and even take advantage of surprise investment opportunities. Getting a good interest rate also means beating out inflation, which would erode your emergency fund if it was cash in a shoebox instead of money in the bank.

Ideally, building an emergency fund means you won’t have to tap into your investments to manage a crisis.

Although Orman recommends three to five years, start with three to six months. Then you can start focusing on hitting your retirement benchmarks, or — even better — work towards both simultaneously if you have the disposable income.

High-yield savings

A great place to start is with a high-yield savings account.

These offer better interest rates than traditional savings accounts, so your money works harder while remaining liquid. Plus, they’re usually insured by the Federal Deposit Insurance Corporation. This means qualifying high-yield accounts are protected against bank-based losses of up to $250,000, and sometimes more through partner banks.

While the national average interest rate for U.S. savings accounts is 0.38% APY (5), online banks can offer you better returns.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s ten times the national deposit savings rate, according to the FDIC’s April report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

Down with debt

Another key piece of Orman’s advice for retirement is to eliminate all debts before you leave work for good (6).

This includes mortgages, car payments and high-interest debt like credit cards. Debt eats into your savings, and the interest you pay on borrowed money can quickly swallow up your monthly budget and make it difficult to plan for unexpected expenses — especially if you’re struggling to pay down the principal.

The two main ways to pay down debt are to either knock off the largest sum first, freeing up money to pay off the smaller ones, or to do the opposite. These are called the avalanche and snowball techniques, respectively.

Another option would be consolidating all your debts into a personal loan through Credible, which can be an effective way to get rid of your debt faster. Instead of juggling multiple monthly payments, you’ll have one predictable payment to manage each month.

Through Credible's online marketplace, finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates with just a few clicks.

In less than three minutes, you’ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.

If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.

With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.