While consistently investing in the stock market through its ups and downs is key to building a robust and profitable stock portfolio, it's also important to ensure your cash position is shored up for a rainy day.

In this segment of Backstage Pass recorded on Jan. 26, Fool contributor Jason Hall talks with Fool contributor Rachel Warren about a couple of suggestions he has for building up some cash to be able to take advantage of beaten-down valuations. 

10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

Stock Advisor returns as of 6/15/21

Rachel Warren: One was from Randy S. He was saying, "I recently retired and I'm almost fully invested, the only cash I have is what I estimate needing over the next five years. Like Jason, I'd like to buy during market corrections, but I won't have cash going forward. Please comment on how I might overcome this dilemma."

Either of you want to jump in on that one?

Jason Hall: Yeah, of course, I've got a few things to say.

Rachel Warren: Of course, you do, Jason.

Jason Hall: I think it's one of those things where number one, Randy, I just want to say kudos and anybody else in this situation for following the broad market wisdom of not investing cash that you're going to need in the next five years. That is incredible. Because that's what keeps you from getting in a bad situation because when you have to sell a stock because you need the money and you have no control over when you're going to sell it, you put yourself to the market swims.

One thing to think about for somebody in that situation again, Randy, we can't give you individual direct advice in this format. But one thing that I know other people that I've talked to have done is turn off DRIPs. You own some dividend stocks. Don't reinvest the dividends, let that generate cash in your portfolio and that can be your funding money. Once a quarter, you can look around and maybe have some fun and invest with that idea. Maybe take a look at Motley Fool Options, maybe you can use some of the stocks you own as a way to generate income from options inside your portfolio.

Then you have that money to think about using to reinvest. There's a few different things that you can do. Your mileage may vary, and obviously, you have to factor it based on the risk you're willing to take with your nest egg. That's few ideas.