Hi!
We're still in accumulation phase (but seeing the light at the end of tunnel) was curious whether you retired types maintain an emergency fund. In your working years one constantly hears the 3-6 months of living expenses thing but clearly is mainly for loss of income due to job loss, with a nod to major expenses popping up like medical, home repair, car repair etc.
Right now we keep about 15k in a MM fund as our emergency stash, but as we approach retirement it seems less and less useful. Actually it might not even be needed now since we can live on either one of our incomes and have plenty in taxable retirement savings. So what do you guys do when you hit the point where you are living on accumulated assets as opposed to a paycheck? Do you even bother with an emergency fund or just figure if have major expense just sell some of those assets (granted possibly at a loss) to handle it?
Thanks for the wisdom, as always
We're still in accumulation phase (but seeing the light at the end of tunnel) was curious whether you retired types maintain an emergency fund. In your working years one constantly hears the 3-6 months of living expenses thing but clearly is mainly for loss of income due to job loss, with a nod to major expenses popping up like medical, home repair, car repair etc.
Right now we keep about 15k in a MM fund as our emergency stash, but as we approach retirement it seems less and less useful. Actually it might not even be needed now since we can live on either one of our incomes and have plenty in taxable retirement savings. So what do you guys do when you hit the point where you are living on accumulated assets as opposed to a paycheck? Do you even bother with an emergency fund or just figure if have major expense just sell some of those assets (granted possibly at a loss) to handle it?
Thanks for the wisdom, as always