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Your Emergency/Comfort Fund

Your Emergency/Comfort Fund

April 24, 2024

I am often asked how much is enough.

The general rule of thumb is to have 3-6 months of your expenses saved.

This amount varies though, as each situation is different.

A few things to consider:

Are you single? Married? Kids? How steady is your job? How soon could you or your spouse find another job?

People sometimes have a $ amount that makes them feel comfortable. Therefore, I ask people if there is a certain $ amount they feel comfortable with knowing they have access to it if needed. Typically, as people get older this amount increases as one would assume because their risk tolerance tends to lower.

This $ amount, above their emergency fund, allows them to put their head on the pillow at night with less worry.

Do you have an emergency fund built up? Many Americans do not and if they need the money, they oftentimes go into credit card debt or have to sell their investments. You don’t want this to be you.

If you have an emergency fund built up for your situation, give yourself a pat on the back. Give it some more thought and there may be a certain $ amount you’d like to have saved that makes you too feel more comfortable.

Disclosure:

Retirement Planning Solutions, LLC is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Retirement Planning Solutions, LLC by the SEC nor does it indicate that Retirement Planning Solutions, LLC has attained a particular level of skill or ability. This material prepared by Retirement Planning Solutions, LLC is for informational purposes only and is accurate as of the date it was prepared. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Advisory services are only offered to clients or prospective clients where Retirement Planning Solutions, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Retirement Planning Solutions, LLC unless a client service agreement is in place. This material is not intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Retirement Planning Solutions, LLC is not an accounting firm. Please consult with your tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.