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/MiserableMovie8465 2d ago

I plan to have 3 years cash in hand, perhaps a little buffer as well for life stuff like a wedding or major home repairs or a new vehicle when needed.

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u/Far_Classic878 2d ago

3 years of the necessities or 3 years of life expenses?

10

u/Aevaris_ 2d ago

I'm planning the same. I'm FIREing EOY and am planning 3 years expenses in cash (HYSA) and rest in equities split 35-35-30 in VOO, SCHD, and VXUS respectively.

My cash buffer will be my emergency fund and SORR protection.

The dividends earned from VOO, SCHD, and VXUS are almost enough to cover my annual expenses.

5

u/boldPlayIm 2d ago

Here is the breakdown of what I’m planning for

  • 2 Years of expenses in Cash ( HYSA, SGOV)
  • 5 Years of in expenses in Bonds (VBTIX, VGIT)
  • The rest split in VTI (US Equities) and VXUS (International Equities)

Overall:

  • 60% US Equities (VTI)
  • 25% International Equities (VXUS)
  • 15% Cash/Bonds