Are high dollar emergency funds necessary if you have secure employment and a substantial 401k?
We have 3 months of expenses in cash - secure professional employment (for one - wife stays home with 2 kids) - and 2.5x gross salary in 401k - age 36.
I know that traditional wisdom suggests 6-12 months expenses but I hate to pull back on retirement savings to pad the emergency fund.
I know that I would have penalties if I accessed 401k funds early but the possibility is very remote.
We have 3 months of expenses in cash - secure professional employment (for one - wife stays home with 2 kids) - and 2.5x gross salary in 401k - age 36.
I know that traditional wisdom suggests 6-12 months expenses but I hate to pull back on retirement savings to pad the emergency fund.
I know that I would have penalties if I accessed 401k funds early but the possibility is very remote.