No. of Recommendations: 1
In retirement, the Emergency Fund is a stash of cash or cash equivalents that in combination with insurance precludes people from being forced into a Buy High - Sell Low investment plan.

If you accept the premise that you should be fully invested all the time to maximize your long term return, the question then moves to how to account for unexpected expenses. There are two risks here.

Risk 1: Not having enough money
Risk 2: Having the money; but not wanting to liquidate assets (due to depressed valuation)

I would surmise that the solution to Risk 1 is simple - save more. The solution to Risk 2 is more nuanced; and the use of low cost borrowing products is probably a good place to start (ie: having access to low cost credit that can be used until asset prices recover).

An article on this would be much more valuable IMO (both for those in retirement and those still in the workforce - the strategies might be different).

PS: Getting a secured loan using investments as collateral is a good start; as is a home equity line of credit.

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