No. of Recommendations: 7
I disagree. In my view, the advice is simply counter-intuitive and, for many, appropriate.

You're right to point out that saving more for your emergency fund takes away from your retirement fund, in that one is left with less funds in his/her retirement account. But, for many, this is not the same as removing money from the retirement account. The act of removing money from the retirement account can have the psychological effect of opening the flood gates, i.e. one begins to treat the retirement account as an on-demand checking account. The mental partitioning of funds between short-term and long-term availability attempts to limit this risk.

If you view this practice as unnecessary, then pat yourself on the back, as you are more rational (optimal) in your approach. That said, I assume that the majority of individuals need to adopt this approach if they hope to ever meet their retirement goals.
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