By Jason Heath, CFP on June 19, 2026 Estimated reading time: 4 minutes

How much cash should you keep in your portfolio?

By Jason Heath, CFP on June 19, 2026 Estimated reading time: 4 minutes

The right cash allocation depends on your goals and stage of life. Here's how to think about cash in your portfolio and retirement plan.

Cash is rarely going to remain steady within your accounts, but you may want to have a target for it, just the same as you would for stocks and bonds. How much depends on several factors and can be a percentage or a dollar amount.

If you are in the accumulation phase, new deposits should result in new cash to be invested on a regular basis. This is also an opportunity to scoop up any cash that has accumulated from dividends, interest, and other distributions to invest as well. 

Whether you should maintain an intentional cash allocation depends. If the account is a registered retirement savings plan (RRSP) or similar retirement plan for many years from now, there may be no reason to hold a cash allocation.One exception might be if you intend to use the Home Buyer’s Plan (HBP) and take an RRSP withdrawal for the purchase of an eligible first home. But barring that, you should probably keep an account meant for the long term fully invested. 

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