No. of Recommendations: 13
Came across this TMF "retirement" article on the value of saving for an emergency fund while you're in retirement.

This 1 Thing Could Make Your Retirement Savings Last Longer

Even if you do have a robust retirement fund, if you withdraw more than you should one year to cover an unexpected cost, that could potentially throw off the rest of your retirement plan. Also, considering it's unlikely you'll only face one unexpected expense over several decades in retirement, overspending each time you face one of these costs could lead to running out of money too soon later in life.

That's where the emergency fund comes in. When you have a solid emergency fund in retirement, you have a designated place to pull cash from when an unexpected expense inevitably crops up. That helps protect your retirement savings, guaranteeing that your money lasts for as long as possible.


Money is fungible. It doesn't know if it's sitting in your "emergency fund" or your "regular retirement fund" after you've stopped working. What's important is that your annual withdrawal over time be sustainable (i.e., 4% rule). If you go over over 4% this year because you needed a new furnace for your home, you'll need to scale back spending for a few years to make it up whether you draw the money from the "emergency fund" or the "regular retirement fund".

Pulling the money from one account or another doesn't make your retirement stash last any longer.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.