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With interest rates incredibly low and the stock market doing so well, how much should I keep in liquid assets?

Dear Ms. MoneyPeace: 

How much should we keep in liquid assets? Does the term liquid assets refer just to money in a bank account? With interest rates incredibly low and the stock market doing so well, it’s not clear how much to keep readily available. I’m asking this question as a married and retired person.

Already Retired Annie

Annie,

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