Emergency fund size

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Kaktus
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Re: Emergency fund size

Post by Kaktus » Mon Sep 03, 2018 1:52 pm

Everyone seems to have his/hers definition of what is an EF. To me the EF is a separate bucket. my cash buffer for household repairs etc is one bucket. The size of first bucket depends on my current obligations and liabilities. For example if I buy a car or boat again or something else that needs big repairs it should be bigger than it is now. My stocks is second bucket. I aim to never take out more from that stash max in a year than what it grows in that year in real terms. My EF is the third bucket. The third bucket is burried out of reach for the authorities and banks. It is for emergencies. We could live on one of our two salaries if we had to. The risk that we both would be fired w short notice from our civil servant jobs at the same time must be extremely small. So our EF is for major problems, for examle if something happen to our kids or if the financial infrastructure shuts down. This rules out credit cards for the EF.
It will always be a largely random and subjective decision how big should that third bucket be. But at least I know that for me it does not have to cover "your fridge can stop working any day" and it does not matter that "the stock market can tank any day" (its hard to understand for me how one can operate on the fact that the stock market tanks every now and then and that this fact should matter for your EF). It makes it easier I think to narrow down what the EF should cover.

passiveTiger
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Re: Emergency fund size

Post by passiveTiger » Mon Sep 03, 2018 2:41 pm

bling wrote:
Sun Sep 02, 2018 8:11 pm
since no one appears to have said it yet, i'm in the camp of "no emergency fund", i have an "emergency plan".

on the same tangent as willthrill81, you must define what an emergency is. for me, that means an unexpected expense which cannot be put on a credit card. i honestly can't think of a single thing that qualifies under that definition. i have health/car/home insurance, so expenses there are capped as well.

the situation only changes in the event of a job loss, which means i wouldn't be able to "float" any expenses because i would be unable to pay the credit card bill the month after.

here's where my "emergency plan" kicks in. i have the option of drawing from my taxable investments, HELOC, 529s, IRAs, 401ks, etc. until i get a job. yes, this is not "optimal", and it might feel better to have cash ready in hand for such an event. however, the opportunity cost is very real. if you had 6 months of expenses invested in VTI at the beginning of 2010, you would have tripled the amount today.
An “emergency plan” that impacts a retirement plan and an education savings plan, worsens your position by acquiring debt, and assumes the value of your home is not impacted by circumstances that cause you to raid those other savings is not really a plan. That is premeditated upheaval. It is more like rationalization for not planning.

The wonderful thing about having an actual rainy day fund and emergency fund is that it allows you to be aggressive elsewhere - and not just in investing.

bling
Posts: 284
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Re: Emergency fund size

Post by bling » Mon Sep 03, 2018 5:24 pm

cherijoh wrote:
Mon Sep 03, 2018 9:55 am
bling wrote:
Sun Sep 02, 2018 8:11 pm
since no one appears to have said it yet, i'm in the camp of "no emergency fund", i have an "emergency plan".
You may think this is an exaggeration, but I know people who lost their houses and the prospect of a comfortable retirement by following a plan similar to yours.
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?

NextMil
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Joined: Wed Dec 13, 2017 12:33 pm

Re: Emergency fund size

Post by NextMil » Mon Sep 03, 2018 6:02 pm

bling wrote:
Mon Sep 03, 2018 5:24 pm
cherijoh wrote:
Mon Sep 03, 2018 9:55 am
bling wrote:
Sun Sep 02, 2018 8:11 pm
since no one appears to have said it yet, i'm in the camp of "no emergency fund", i have an "emergency plan".
You may think this is an exaggeration, but I know people who lost their houses and the prospect of a comfortable retirement by following a plan similar to yours.
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?
Except one has cash that is in savings and not in investements, which is the point of an emergency fund. Cash, not investments.

bltn
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Re: Emergency fund size

Post by bltn » Mon Sep 03, 2018 7:16 pm

lthenderson wrote:
Fri Aug 31, 2018 9:46 am
Yes, the rule of thumb should be based on so many months of expenses, not amount. Someone who spends $20k per month will have a different sized emergency fund than someone who spend $1k per month.

When I was younger, I always kept six months worth of expenses. As we get older and life more complicated, i.e. we aren't as flexible to just pick up and move at a moments notice, I keep a years worth of expenses in my emergency fund.
This has been our history. 6-8 months of living expenses when we were young. As we ve gotten older, we re not as flexible.
18-24 months of expenses in liquid, safe knvestments now (cash, cds,ultra short term high quality bonds).

nyclon
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Re: Emergency fund size

Post by nyclon » Mon Sep 03, 2018 7:52 pm

passiveTiger wrote:
Mon Sep 03, 2018 2:41 pm
bling wrote:
Sun Sep 02, 2018 8:11 pm
since no one appears to have said it yet, i'm in the camp of "no emergency fund", i have an "emergency plan".

on the same tangent as willthrill81, you must define what an emergency is. for me, that means an unexpected expense which cannot be put on a credit card. i honestly can't think of a single thing that qualifies under that definition. i have health/car/home insurance, so expenses there are capped as well.

the situation only changes in the event of a job loss, which means i wouldn't be able to "float" any expenses because i would be unable to pay the credit card bill the month after.

here's where my "emergency plan" kicks in. i have the option of drawing from my taxable investments, HELOC, 529s, IRAs, 401ks, etc. until i get a job. yes, this is not "optimal", and it might feel better to have cash ready in hand for such an event. however, the opportunity cost is very real. if you had 6 months of expenses invested in VTI at the beginning of 2010, you would have tripled the amount today.
An “emergency plan” that impacts a retirement plan and an education savings plan, worsens your position by acquiring debt, and assumes the value of your home is not impacted by circumstances that cause you to raid those other savings is not really a plan. That is premeditated upheaval. It is more like rationalization for not planning.

The wonderful thing about having an actual rainy day fund and emergency fund is that it allows you to be aggressive elsewhere - and not just in investing.
+1, especially the piece about being more aggressive elsewhere.

bling
Posts: 284
Joined: Sat Jan 21, 2012 12:49 pm

Re: Emergency fund size

Post by bling » Mon Sep 03, 2018 8:42 pm

NextMil wrote:
Mon Sep 03, 2018 6:02 pm
bling wrote:
Mon Sep 03, 2018 5:24 pm
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?
Except one has cash that is in savings and not in investements, which is the point of an emergency fund. Cash, not investments.
name one emergency that cannot be put on a credit card, or cannot wait the 2 days to settle when selling bonds in an investment account.

NextMil
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Re: Emergency fund size

Post by NextMil » Mon Sep 03, 2018 8:48 pm

bling wrote:
Mon Sep 03, 2018 8:42 pm
NextMil wrote:
Mon Sep 03, 2018 6:02 pm
bling wrote:
Mon Sep 03, 2018 5:24 pm
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?
Except one has cash that is in savings and not in investements, which is the point of an emergency fund. Cash, not investments.
name one emergency that cannot be put on a credit card, or cannot wait the 2 days to settle when selling bonds in an investment account.
Kidnapped family member.

boridi
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Re: Emergency fund size

Post by boridi » Tue Sep 04, 2018 5:31 am

NextMil wrote:
Mon Sep 03, 2018 8:48 pm
bling wrote:
Mon Sep 03, 2018 8:42 pm
NextMil wrote:
Mon Sep 03, 2018 6:02 pm
bling wrote:
Mon Sep 03, 2018 5:24 pm
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?
Except one has cash that is in savings and not in investements, which is the point of an emergency fund. Cash, not investments.
name one emergency that cannot be put on a credit card, or cannot wait the 2 days to settle when selling bonds in an investment account.
Kidnapped family member.
Depending on the family member, I might pay the kidnapper to keep them.

NextMil
Posts: 464
Joined: Wed Dec 13, 2017 12:33 pm

Re: Emergency fund size

Post by NextMil » Tue Sep 04, 2018 6:42 am

boridi wrote:
Tue Sep 04, 2018 5:31 am
NextMil wrote:
Mon Sep 03, 2018 8:48 pm
bling wrote:
Mon Sep 03, 2018 8:42 pm

name one emergency that cannot be put on a credit card, or cannot wait the 2 days to settle when selling bonds in an investment account.
Kidnapped family member.
Depending on the family member, I might pay the kidnapper to keep them.
All the more reason to have a good strong emergency fund :wink:

cherijoh
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Location: Charlotte NC

Re: Emergency fund size

Post by cherijoh » Tue Sep 04, 2018 7:57 am

bling wrote:
Mon Sep 03, 2018 5:24 pm
cherijoh wrote:
Mon Sep 03, 2018 9:55 am
bling wrote:
Sun Sep 02, 2018 8:11 pm
since no one appears to have said it yet, i'm in the camp of "no emergency fund", i have an "emergency plan".
You may think this is an exaggeration, but I know people who lost their houses and the prospect of a comfortable retirement by following a plan similar to yours.
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?
That is a strawman argument. I doubt that anyone who is thinks having a separate EF as being an "opportunity cost" is going to be holding a more conservative AA to make up for the lack of an EF. Plus there are many people who have no taxable investments - only tax-advantaged accounts so you are looking running up credit card debt or paying taxes and early withdrawal penalties if an emergency hits.

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GoldStar
Posts: 529
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Re: Emergency fund size

Post by GoldStar » Tue Sep 04, 2018 8:22 am

NextMil wrote:
Mon Sep 03, 2018 8:48 pm
bling wrote:
Mon Sep 03, 2018 8:42 pm
NextMil wrote:
Mon Sep 03, 2018 6:02 pm
bling wrote:
Mon Sep 03, 2018 5:24 pm
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?
Except one has cash that is in savings and not in investements, which is the point of an emergency fund. Cash, not investments.
name one emergency that cannot be put on a credit card, or cannot wait the 2 days to settle when selling bonds in an investment account.
Kidnapped family member.
- Weekend plumbing failure. My plumber isn't going to do Sunday work for free. (maybe other plumbers take credit cards but I bet they charge more).
- Other weekend emergency work (leaking roof; electrical short; etc.). All the guys I use do not take credit cards nor IOUs.
- Regional weather event that takes down credit card systems - some stores stay open but only take cash.
- Laid off for 1 month and the stock market tanks - don't want to sell anything at the market bottom nor run up credit card debt. Lay-offs in my industry are tightly correlated with market down-turns.

JackoC
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Re: Emergency fund size

Post by JackoC » Tue Sep 04, 2018 9:46 am

nomadgecko wrote:
Fri Aug 31, 2018 10:49 am
Great question, and I expect you'll continue to get a lot of "it depends on x, it depends on y, etc.".

Here's what we do. For context, my wife and I work full time and live in a HCOL area. I would say my job is "medium" stability and her's is "high" based on my subjective judgment. My thinking on the emergency fund has evolved over time, and as of today, I think of it in traunches.

First wave: Money market fund that covers 9 months of us both not working. This is sitting in a taxable account.
Second wave: Roth IRA contributions to-date. I don't want to tap this (ever), but conceivably I could if absolutely needed.
Third wave: We have some I-bonds currently earmarked for our kids' college fund, but if dire, I'd raid them.
Fourth wave: We have an untapped HELOC.
A lot of this is about policing behavioral errors in oneself, or more presumptuously, in others. Your way IMO is definitely a logical way. Beyond that as somebody else mentioned, how is 10% of one person's 'investments not emergency fund' in safe bonds any less an 'emergency fund' in reality compared to somebody else who has that same 10% in stocks? The push back on looking at it more broadly seems to be 'but the person will fall into a behavioral trap of not having enough if they look at it more broadly'. And maybe just a kind puritanical thing where you discourage people from feeling comfortable? (you have what most people would say is a reasonable 'EF' in a strict sense, and are just observing that there are always more ways to raise money, unless the EF is really all the person has).

On untapped credit, I'd add untapped credit card lines, and the ability to borrow on margin against ETF's, if you hold them with somebody w/ reasonable margin rates (read: Interactive Brokers, last I knew every other retail broker's were way higher), and if you only count on withdrawing a pretty small % of the current value. IB per their dynamic system seems to allow 70%+ withdrawal, so if you figure 25-30% you wouldn't be looking at a margin call unless your own emergency coincides with a huge stock melt down. Although that can't be ruled out...so that's why it wouldn't be your first and only line of defense. But it *is* there, if you set yourself up that way, and doesn't cost anything when you're not using it. Money in the bank feels good but does cost you compared to even bond returns, typically.

On the last point though and back to behavioral, I also like to see money in the bank. That good feeling is itself worth something to real me, reasonably I believe but not 100% rational. The more so if the emergency is that I suddenly drop out of the picture, simple bank account in wife's name to spend till other paperwork is sorted out.

Nowizard
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Re: Emergency fund size

Post by Nowizard » Tue Sep 04, 2018 11:21 am

Varies depending on cash flow but nothing designated as emergency funds since all our funds are accessible and there is always something that can be withdrawn without major impact. Currently, about 30K. This approach is based on having reliable cash flow from SS and a pension that typically meets expenses.

Tim

bling
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Joined: Sat Jan 21, 2012 12:49 pm

Re: Emergency fund size

Post by bling » Tue Sep 04, 2018 1:27 pm

cherijoh wrote:
Tue Sep 04, 2018 7:57 am
bling wrote:
Mon Sep 03, 2018 5:24 pm
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?
That is a strawman argument. I doubt that anyone who is thinks having a separate EF as being an "opportunity cost" is going to be holding a more conservative AA to make up for the lack of an EF. Plus there are many people who have no taxable investments - only tax-advantaged accounts so you are looking running up credit card debt or paying taxes and early withdrawal penalties if an emergency hits.
some people like to slice and dice their finances into multiple buckets, i don't. the only reason i do is because it makes sense to call out a 401k vs roth vs taxable because of their tax treatment. in their absense, it makes no difference to me. in a true emergency, anything and everything you own is at play. your car breaking down or your water heater breaking is not an emergency in my book. is it an "unexpected expense", sure, but not an "emergency".

for those with no taxable, they are screwed either way. if you have $0 to your name, are you going to start putting money into an EF or 401k? is having the safety more important than giving your tax advantaged space, which is use it or lose it?
GoldStar wrote:
Tue Sep 04, 2018 8:22 am
NextMil wrote:
Mon Sep 03, 2018 8:48 pm
bling wrote:
Mon Sep 03, 2018 8:42 pm
name one emergency that cannot be put on a credit card, or cannot wait the 2 days to settle when selling bonds in an investment account.
Kidnapped family member.
- Weekend plumbing failure. My plumber isn't going to do Sunday work for free. (maybe other plumbers take credit cards but I bet they charge more).
- Other weekend emergency work (leaking roof; electrical short; etc.). All the guys I use do not take credit cards nor IOUs.
- Regional weather event that takes down credit card systems - some stores stay open but only take cash.
- Laid off for 1 month and the stock market tanks - don't want to sell anything at the market bottom nor run up credit card debt. Lay-offs in my industry are tightly correlated with market down-turns.
venmo/zelle takes care of the cash problem. or you can take a cash advance on your credit card and pay off the interest for 2 days. or you can set up overdraft protection, and again, pay the fees for floating 2 days. there are tons of options.

on the point of power outage, how much money are you carrying in CASH, and not a checking/savings account? surely people are not recommending 6 months in paper under your pillow.

on the point of selling when the market goes down, you can do it in a tax efficienct manner by selling in your taxable and rebalancing in your tax-advantaged to maintain your AA.

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GoldStar
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Re: Emergency fund size

Post by GoldStar » Tue Sep 04, 2018 2:52 pm

bling wrote:
Tue Sep 04, 2018 1:27 pm
cherijoh wrote:
Tue Sep 04, 2018 7:57 am
bling wrote:
Mon Sep 03, 2018 5:24 pm
and here's my counter to that argument.

what's the difference between someone with a 80/20 allocation with a dedicated EF vs someone who has 70/30 allocation with no EF? pretty much nothing. yet the standard answer to "what should my AA be" is "need/ability to take risk", aka there's no correct answer for everyone. how is this any different?
That is a strawman argument. I doubt that anyone who is thinks having a separate EF as being an "opportunity cost" is going to be holding a more conservative AA to make up for the lack of an EF. Plus there are many people who have no taxable investments - only tax-advantaged accounts so you are looking running up credit card debt or paying taxes and early withdrawal penalties if an emergency hits.
some people like to slice and dice their finances into multiple buckets, i don't. the only reason i do is because it makes sense to call out a 401k vs roth vs taxable because of their tax treatment. in their absense, it makes no difference to me. in a true emergency, anything and everything you own is at play. your car breaking down or your water heater breaking is not an emergency in my book. is it an "unexpected expense", sure, but not an "emergency".

for those with no taxable, they are screwed either way. if you have $0 to your name, are you going to start putting money into an EF or 401k? is having the safety more important than giving your tax advantaged space, which is use it or lose it?
GoldStar wrote:
Tue Sep 04, 2018 8:22 am
NextMil wrote:
Mon Sep 03, 2018 8:48 pm
bling wrote:
Mon Sep 03, 2018 8:42 pm
name one emergency that cannot be put on a credit card, or cannot wait the 2 days to settle when selling bonds in an investment account.
Kidnapped family member.
- Weekend plumbing failure. My plumber isn't going to do Sunday work for free. (maybe other plumbers take credit cards but I bet they charge more).
- Other weekend emergency work (leaking roof; electrical short; etc.). All the guys I use do not take credit cards nor IOUs.
- Regional weather event that takes down credit card systems - some stores stay open but only take cash.
- Laid off for 1 month and the stock market tanks - don't want to sell anything at the market bottom nor run up credit card debt. Lay-offs in my industry are tightly correlated with market down-turns.
venmo/zelle takes care of the cash problem. or you can take a cash advance on your credit card and pay off the interest for 2 days. or you can set up overdraft protection, and again, pay the fees for floating 2 days. there are tons of options.

on the point of power outage, how much money are you carrying in CASH, and not a checking/savings account? surely people are not recommending 6 months in paper under your pillow.

on the point of selling when the market goes down, you can do it in a tax efficienct manner by selling in your taxable and rebalancing in your tax-advantaged to maintain your AA.
I doubt my plumber has venmo/zelle set up and I'm not going to plan on using expensive credit card cash advances. Personal paper checks are often/usual accepted however - but in those cases you need and emergency fund to back up the checks.
I don't want to plan selling out my taxable investments either.
The beauty of an emergency account is that it covers various types of emergencies without making expensive moves like pulling cash out of a credit card or cashing out stocks from a taxable account at the bottom of a market crash.

Here is the boglehead wiki emergency fund page in case the OP missed it:
https://www.bogleheads.org/wiki/Emergency_fund

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Toons
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Re: Emergency fund size

Post by Toons » Tue Sep 04, 2018 2:55 pm

25k
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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JamalJones
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Location: California

Re: Emergency fund size

Post by JamalJones » Tue Sep 04, 2018 4:04 pm

Broken Man 1999 wrote:
Fri Aug 31, 2018 5:08 pm
jebmke wrote:
Fri Aug 31, 2018 3:53 pm
MichCPA wrote:
Fri Aug 31, 2018 11:02 am
+1 , On some level all of your assets and credit lines are an 'emergency fund'.
This is our approach. We have not had an emergency fund for the last 25 years.
Same here. We were blessed with stable employment when we worked. When much younger, I knew we could draw on Bank of Dad. Now we are in retirement, we can draw on Bank of Daughters, who both keep WAY too many $$ in savings accounts. :shock:

So many ways to have funds made available: Transfer from Vanguard, sell I Bonds, charge or cash advance via credit cards, deposit 0% for X months checks from credit cards, write check on Vanguard funds, borrow from daughters, pull regular monthly draws for expenses early.... probably many more.

Broken Man 1999
+1 Me too! I've never had an emergency fund myself either. For a few reasons: Even during the first 5 years of my career, I decided to max out my 401k/IRA when I wasn't making very much money at all. So that left no room for an emergency fund. Then, once I started making money to the point where I wasn't coasting on fumes every pay period, I decided to slowly and at irregular intervals (because many times various expenses would occur and I couldn't afford to put into taxable account that month) add money to a taxable account of ETFs so I could grow my money. I too also have fairly stable employment and as such, I haven't prioritized an EF. Finally, I have a social life and I enjoy various activities that while aren't expensive, do cost money. In addition, I live in a lower tier HCOLA so that's a factor as well.

But even now it would take me quite some time to build up even 6 months of expenses in an EF.
TSP + Vanguard Roth IRA + Vanguard Taxable: 80% equities / 20% bonds | Yap, yap, yap, yap, - the bottom line is ya gotta buckle up the chin strap!

bling
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Re: Emergency fund size

Post by bling » Tue Sep 04, 2018 5:31 pm

GoldStar wrote:
Tue Sep 04, 2018 2:52 pm

I doubt my plumber has venmo/zelle set up and I'm not going to plan on using expensive credit card cash advances. Personal paper checks are often/usual accepted however - but in those cases you need and emergency fund to back up the checks.
I don't want to plan selling out my taxable investments either.
The beauty of an emergency account is that it covers various types of emergencies without making expensive moves like pulling cash out of a credit card or cashing out stocks from a taxable account at the bottom of a market crash.
it's only expensive if you keep a balance. even at crazy 20% credit card rates, you're only paying a dollar or two for 2 days of borrowing.

yes, it sucks to sell at the bottom, even in a tax efficient manner. it also sucks for everyone who held a EF for the past decade and missed out on the 7% CAGR of a 60/40 portfolio. it's all connected.

if having an EF helps you sleep at night, more power to you. but it still boils down to the same need/ability to take risk.

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dccboone
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Re: Emergency fund size

Post by dccboone » Tue Sep 04, 2018 5:46 pm

For those with a mortgage, something you may want to consider. If your Emergency Fund includes 3 to 6 months of expenses and those expenses include money for your mortgage, when you’re close to paying off your home, take the money from your Emergency Fund that’s set aside for your mortgage and pay your home off 3 to 6 months early. That's what we did and it worked great. House was paid-off even earlier and we still had a 6-month Emergency Fund.

bradpevans
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Re: Emergency fund size

Post by bradpevans » Tue Sep 04, 2018 9:43 pm

jebmke wrote:
Fri Aug 31, 2018 3:53 pm
MichCPA wrote:
Fri Aug 31, 2018 11:02 am
+1 , On some level all of your assets and credit lines are an 'emergency fund'.
This is our approach. We have not had an emergency fund for the last 25 years.

I’m of this perspective as well

IF needed, I’m sure no one regrets having their large EF. BUT, that’s a lotta cash on the sidelines (ie low returns) for a lotta years

NextMil
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Re: Emergency fund size

Post by NextMil » Wed Sep 05, 2018 6:23 am

Ugh. An emergency fund is not an investment.

NextMil
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Re: Emergency fund size

Post by NextMil » Wed Sep 05, 2018 6:24 am

dccboone wrote:
Tue Sep 04, 2018 5:46 pm
For those with a mortgage, something you may want to consider. If your Emergency Fund includes 3 to 6 months of expenses and those expenses include money for your mortgage, when you’re close to paying off your home, take the money from your Emergency Fund that’s set aside for your mortgage and pay your home off 3 to 6 months early. That's what we did and it worked great. House was paid-off even earlier and we still had a 6-month Emergency Fund.
Great point.

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