IRA and 401K accounts are important prior to retirement. Once in retirement, it is important to add up your anticipated monthly expenses and split into essential or discretionary. "Tally up all the reliable sources of income in retirement and subtract anticipated expenses from anticipated income to see how realistic your budget is," says Carrie Schwab-Pomerantz. Additionally, emergency funds in retirement can be set up while setting aside enough cash to cover your expenses for at least 12 months in a liquid savings account. "An adequate cash cushion will prepare you to weather a bear market," Schwab-Pomerantz adds. Finally, social security benefits can be taken as early as 62.