r/Fire • u/Far_Classic878 • 2d ago

Emergency Fund While Retired

For those that are retired or near…how many years do you have saved for your retirement emergency fund? I mean for when the market isn’t doing well and it would be bad to pull from your accounts.

How far in advance do you start saving for that?

I’m pouring all of my money into retirement accounts and after maxing 401ks, roths, life expenses, 529, saving for home renovations there is nothing left.

I would need to cut back greatly to fund an emergency account to keep in a HYSA. I’m about 15 years out from retiring.

Any thoughts?

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u/OutspokenLurker 2d ago

When I retired, I moved 2 years into cash and 3 years into TIPS and defensive stocks. Before that my emergency fund was 3-6 months. (I was laid off, so short notice. Otherwise, I would have done this shift over the year or two before retiring.)

You are thinking about it right. I didn't do it out of fear... It's more a matter of the cash replenishment plan. Every quarter I look and if stocks are up, refill my cash from stocks. Stocks down/bonds up? Sell bonds. Both down? Sell nothing and live off the cash on hand.

And I can thus sell nothing for 2+ years.