Roc Rider, we are in similar situation. I am 75, wife 72 holding no corporate bonds or bond funds. 60% S&P 500 index and 40% cash in CD’s, tbills, treasury money market. Do you hold any corporate bonds or bond funds? If not, are you concerned about inflation? What is your AA? Thanks.It's not clear whether OP holds cash as an emergency fund. We're retired in early-mid 70s and our cash allows us to SWAN while holding a greater percent of equities than we might otherwise. Kind of like a cash tent, instead of a bond tent. To the extent that one does hold cash, it's more tax efficient to hold it in tax-deferred. Just enough in taxable to meet expected and routine needs. Any unanticipated expense, whether emergency or not, can easily be pulled as RMD. It's simply a matter of which account you stash your cash allocation in, assuming one chooses to have a cash allocation.Some people like to sort their money into different pots. It isn't logical, but few people are strictly logical in financial matters.+1 Your whole portfolio is your emergency fund. You can pull from pre-tax, Roth, taxable or whatever combination you like to cover the emergency.I've always thought of an emergency fund as something you need when there is a risk of not having sufficient income and/or assets to cover expenses.
Once you've saved enough for retirement, or even enough to cover your expenses for a couple of years, I don't see the point of having one. The whole portfolio becomes your emergency fund...
Statistics: Posted by artbuc — Thu May 16, 2024 5:04 pm — Replies 10 — Views 788