Whether or not to hold an emergency fund is a personal decision. There isn’t a right or wrong answer.
A designated emergency fund makes sense (to me) for a younger person starting out or for anyone with a retirement portfolio value held primarily in an employer tax deferred plan. If a true emergency arises, there is little available cash although credit cards or a hardship distribution are possibilities.
For a larger retirement portfolio that includes accessible cash via a Taxable account or Roth IRA, I personally don’t see the need for a designated emergency fund.
A designated emergency fund makes sense (to me) for a younger person starting out or for anyone with a retirement portfolio value held primarily in an employer tax deferred plan. If a true emergency arises, there is little available cash although credit cards or a hardship distribution are possibilities.
For a larger retirement portfolio that includes accessible cash via a Taxable account or Roth IRA, I personally don’t see the need for a designated emergency fund.
Statistics: Posted by HomeStretch — Sun Feb 25, 2024 5:21 am — Replies 5 — Views 447