Originally Posted by Meadbh
Does anyone have an opinion on whether an emergency fund may need to be differently structured in the accumulation and decumulation phases?
I think cash management is significantly different after retirement. First of all, there is the psychological effect -- knowing there is no further salary income to count on. Secondly, managing money becomes a broader concern: there is no deposit to savings each month, and, going over budget could be a problem downstream.
That said, I feel very comfortable with 2 years of living expenses in bank accounts, and CD's. That provides me with the ability to cover an emergency expense without having to re-balance assets and perhaps sell equities to get the cash.