stemikger wrote:However, in retirement if you have an income for life is it really necessary to have an emergency fund?
scrabbler1 wrote:As an early retiree, I have tiers, or layers, of money based on speed and ease of access along with risk of principal. This is the same philosophy I used when I was working. I have some extra cash in my local bank's checking account (beyond any minimum balance requirements) in case I have some small, unforeseen expenses. If that is not enough, my next layer is an intermediate-term, muni bond fund. It has checkwriting privileges so it is a bit more readily accessible than other investments I have which lack that privilege. (I have rarely needed to tap into that.) Beyond that, I have other mutual funds which are more volatile than the bond fund or are used mainly to generate the monthly dividends to cover my expenses.
I think that "emergency fund" is just another name for "cash reserves" and other euphemism that we all use to denote cash that is siting in a bank account/MMF or other short term location that will probably be spent on something in the relatively near term.
Some folks seem to like the EF name that is placed on their stash-of-cash. Name's not important, but amount and availability of funds is.
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