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The standard advice is that you should have an emergency fund equal to 3 to 6 months of expenses. The most commonly cited reason for this is to cover a period of unexpected unemployment while seeking a new job.

While employed, I wanted an e-fund equal to 12 months of expenses, because my perception was that I would find it difficult to get a replacement job that compensated me as well as the one I held.

Now I'm retired. I look at my e-fund, and it stands at a bit over 13 months of expenses. Finding a replacement job is no longer relevant. My e-fund looks a bit large, and I'm considering redeploying part of it to other purposes.

So, how much of an e-fund does a retired person need? I understand the sleep well at night test, but what answers do people come up with for the desired size of an e-fund in retirement?

For discussion purposes, assume that the e-fund is held in savings accounts, savings bonds, CDs, and anything else that might pay a little interest while preserving principal and being easily converted into cash. Retirement accounts (even the Roth IRA) are not e-funds, a HELOC is not an e-fund, and credit cards are not e-funds.

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