10 Assets You Should Hold Onto in Retirement (Even If You Need the Cash)

When retirement savings are stretched thin, selling an asset might feel like the simplest solution. But the easiest asset to sell is not always the smartest one to give up. Some holdings provide tax advantages, future income, inflation protection, or financial security that may be difficult to rebuild once they are gone.

Before liquidating anything, consider what you may lose beyond the immediate cash.

Here are the assets you should hold.

Your Roth IRA balance

A Roth IRA offers a few tax advantages. Withdrawals are tax-free after age 59 1/2, there are no required minimum distributions, and heirs may receive the balance without triggering ordinary income tax.

"The Roth IRA is the best vehicle, in my opinion, that people have to grow their money for retirement," says Thorn Murphy of Prime Capital Financial. For many retirees, using taxable or traditional accounts first could help protect future tax-free income.

A paid-off home

A paid-off home provides financial stability by eliminating a major monthly expense and protecting you from rising housing costs. Homeowners aged 65 to 74 have a median home equity of about $320,000, according to Investopedia.

Selling may unlock cash, but it might also replace a predictable expense with rent or mortgage payments. Options like a HELOC or reverse mortgage may provide access to funds while keeping the home.

Cash value life insurance

Permanent life insurance policies with cash value serve multiple purposes beyond the death benefit. They provide emergency access to funds, tax advantages, and financial protection for beneficiaries.

Surrendering the policy may permanently remove these benefits and could trigger taxes on gains. Before canceling, explore options such as policy loans, partial withdrawals, or reducing coverage instead of eliminating it completely.

Dividend-paying stocks and income-generating investments

Selling income-generating investments for a short-term cash need may eliminate the income stream those assets provide. A stock paying a 4% annual dividend on a $100,000 position generates $4,000 per year indefinitely.

Selling it gives you $100,000 once, but removes that future income. Highly appreciated assets might also trigger capital gains taxes and potentially push you into an IRMAA tier two years later.

Treasury Inflation-Protected Securities (TIPS)

TIPS are U.S. Treasury bonds designed to adjust their principal with inflation, helping protect your purchasing power when prices rise. Selling TIPS during a high-inflation period could defeat their purpose because you are giving up the asset built to defend against rising costs.

Using cash reserves, high-yield savings, or short-term CDs for near-term expenses may allow TIPS to continue serving as a long-term inflation hedge.

Your Social Security benefit (by not claiming early)

If you haven't claimed Social Security yet, that future benefit is effectively a deferred asset. Claiming early (age 62) due to cash pressure permanently reduces your monthly payment by up to 30%. On a $2,000 FRA benefit, that means $600 less every month for life.

Over a 20-year retirement, that's $100,000+ in lost lifetime income. Taking on a part-time job could help you bridge the income gap.

Appreciated assets with a step-up in basis

Highly appreciated assets in taxable brokerage accounts may be worth preserving, as heirs could receive a stepped-up cost basis at death. That means they may sell the assets without owing capital gains tax on the appreciation that occurred during your lifetime.

Disposing of those investments could create an avoidable tax bill. A smarter alternative is to draw from cash, money market funds, or recently purchased positions with minimal appreciation instead.

Health Savings Account (HSA) funds

If you have an HSA, it's one of the most valuable health care assets in retirement because it offers triple tax advantages: Contributions are tax-deductible, growth is tax-free, and qualified medical withdrawals are tax-free.

Fidelity estimated in 2025 that a 65-year-old today will spend an average of $172,500 in out-of-pocket health care costs throughout retirement. Preserving HSA funds for future medical expenses may help cover one of retirement's highest and most unpredictable costs.

Assets with sentimental or family value

Some assets are valuable because replacing them is impossible, not because of their resale price. A family home worth $400,000, a vintage collection worth $25,000, or inherited land passed down for generations may carry financial and personal value that grows over time.

Selling during a cash crunch could create lasting regret. Before liquidating, explore options like borrowing against assets or adjusting expenses first.

An annuity with guaranteed income

Certain annuities, such as contracts with Guaranteed Lifetime Withdrawal Benefits (GLWB), provide a guaranteed income stream that continues regardless of market performance. An annuity generating $1,500 per month provides $18,000 in predictable annual income that might be difficult to replace once surrendered.

Before selling, consider surrender charges, fees, and the long-term value of the payments. Replacing guaranteed income with investments may expose your retirement plan to more market risk.

What your retirement portfolio should include

To protect your financial security throughout retirement, a strong portfolio should balance income, growth, and protection against unexpected costs:

• Cash reserves: Cover short-term expenses without selling investments during downturns.
• Income investments: Create a reliable cash flow from dividends, bonds, or other assets.
• Growth assets: Help your money keep pace with inflation.
• Tax-diversified accounts: Provide flexibility when managing withdrawals.
• Health care savings: Prepare for rising medical costs.

Bottom line

The assets most worth protecting in retirement are rarely the ones that feel optional at the moment. Roth balances, income-generating investments, and life insurance cash value all carry compounding or protective value that is difficult to replace once liquidated.

Before selling, consider alternatives like a credit card with a 0% introductory APR for short-term expenses if you are able to repay on time.