By Gregg Gonzalez, CFP®
At RetireStrong Financial Advisors, we believe a strong financial future starts with strong foundations. One of the most important foundations is your emergency fund – a safety net that gives you confidence when life throws the unexpected your way.
What Is an Emergency Fund?
An emergency fund is money you set aside specifically for unexpected expenses. Think of it as the shield of your financial forest – ready to protect you from life’s storms without disrupting your long-term goals.
Unexpected events might include:
- Medical emergencies
- Job loss or income changes
- Major home or car repairs
- Unplanned travel or family needs
How Much Should You Save?
A common rule of thumb is to have 3–6 months’ worth of essential expenses set aside. This provides enough cushion to cover needs while you adjust or recover from a financial setback. For retirees, that number may vary depending on income sources, health, and lifestyle.
Where Should You Keep It?
Your emergency fund should be safe, accessible, and separate from your everyday spending. Options include:
- High-yield savings accounts
- Money market accounts
- Short-term certificates of deposit (CDs) [e.g. 6 months]
The goal isn’t high returns—it’s quick access when you need it most.
Why It Matters in Retirement
In retirement, your income may be fixed or drawn from investments. An emergency fund protects you from having to sell investments at the wrong time or disrupt your income plan. It gives you confidence to enjoy your retirement knowing you’re prepared for surprises.
The RetireStrong Approach
At RetireStrong, we view your emergency fund as one of the strongest roots in your financial forest. It anchors your budget and allows you to weather storms without losing sight of your long-term goals. Just like the deer in our logo represents foresight and resilience, your emergency fund represents stability, strength, and confidence.
👉 At RetireStrong Financial Advisors, we’ll help you determine the right amount for your emergency fund and where to keep it, so you can stay focused on what truly matters: enjoying the retirement you’ve worked so hard to achieve.
