# Why Retirees Really Need an Emergency Fund



## KingsX (Apr 25, 2018)

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Interesting article - more info at link below


*Why Retirees Really Need an Emergency Fund*

" While your tax-advantaged retirement accounts will likely hold the bulk of your money, 
it's also important to have a simple savings account that serves as an emergency fund. "


1. Costly emergencies may be more likely to hit your household

" Your elevated risk of emergency could come from an aging home more likely to require repair...
And, of course, you're aging too, so your list of possible emergencies includes a major health problem."


2. Going into debt is a disaster on a fixed income

" More than 6 in 10 households don't have enough cash to cover emergency costs totaling $1,000 or more...
While debt is always damaging, it can be worse for a senior on a fixed income. "


3. You don't want to be forced to pull money out of your retirement accounts

" Going into debt is clearly a bad idea, but being forced to pull money out of retirement accounts to respond
 to an emergency could perhaps be even worse. "


4. You may not be able to work extra to make up for financial disaster

" While younger people who get into debt or face unexpected financial disaster can often pick up some overtime
 or start a side hustle, options may be more limited for a senior."


entire article at link

https://www.fool.com/retirement/2018/04/18/why-retirees-really-need-an-emergency-fund.aspx

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## KingsX (Apr 25, 2018)

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Here's another interesting article that might be helpful.


*6 Ways You Might Get Taxed in Retirement*

"  Seniors aren't exempt from taxes. Here's how the IRS can get you when you're older. "

Go to link 

https://www.fool.com/retirement/2018/04/16/6-ways-you-might-get-taxed-in-retirement.aspx

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## Mizzkitt (Apr 25, 2018)

So true, we all need to have an emergency fund because there is always an emergency in the making. Some rely on paying for the emergency with Visa and then that compounds the problem.


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## Buckeye (Apr 25, 2018)

AARP sends me emails all the time that 1 in 5 (I think) seniors are struggling to just buy groceries.  Emergency fund is not an issue for them and many others.


UPDATED - just got another AARP email - *1 in 3* are "struggling to meet basic needs"......


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## hollydolly (Apr 25, 2018)

Hoot N Annie said:


> AARP sends me emails all the time that 1 in 5 (I think) seniors are struggling to just buy groceries.  Emergency fund is not an issue for them and many others.




When I was young and newly married and my then husband was in the navy earning a pittance, we struggled to buy food and basic necessities, ...to think that after all these years and now into  the autumn of my life..I'd have to struggle to find the money to buy groceries fills me with horror and sheer fright, and I just feel the pain of those seniors who are in that financial plight after living a whole life... and having to struggle for basic amenities and food when they should be at the very least... comfortable with life...


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## ancient mariner (Apr 25, 2018)

Thanks for that.  I'd completely forgotten about the "fool"  forwarded it to daughter at work.  Thanks again.

I know what you mean.  My father in law worked all his life and when he retired, he could barely afford food, let alone an occasional round of golf with his old buddies.  I was still working at the time and I sent him a check every month and down at the bottom I wrote "loan repayment" because I didn't want to hurt his pride.  I don't think he thought much of it.  Then what a surprise.  When he passed, we flew out to San Francisco to take care of his affairs and in a lockbox we found $10,000 in $20 bills and stored here and there in his SRO in the Tenderloin jars filled with rare coins.  It was a wonder he hadn't been robbed.  But then we understood. People started showing up at the door offering condolences, well wishes, invitations for drinks and dinner, reminiscinces, and these were what you might consider the dregs of society, gypsies, tramps thieves, prostitutes, after all it was the Tenderloin.  And they were his protectors.  He had a rich life.


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## Aunt Bea (Apr 25, 2018)

We all need a little stash!

Some need millions in offshore accounts and some get by with a $20.00 tucked in their sock.

We all have a different idea of what is a safe distance from the financial edge.


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## Camper6 (Apr 25, 2018)

All you need for an emergency is a credit card or a line of credit.


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## OneEyedDiva (Apr 25, 2018)

Good articles KingsX. I learned the hard way about not having an adequate emergency fund when I was heavy into investing. I wound up taking distributions from my funds to cover my wants at the time. Even though I didn't lose money, I wish I had kept those shares. I have since rectified that situation and since any big expenditures affecting my place of residence are taken care of by the co-operative association, I have more than enough of an emergency fund barring any catastrophic illness or long nursing home stay.


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## Keesha (Apr 25, 2018)

This is so true. An emergency fund is a necessity at any stage of life but especially in our senior years. Some of these stories are heart breaking. People not having enough money for food to eat is frightening
Luckily we have a retirement fund, a homeownship line of credit, as well as some money in the bank. 
Since we don’t have children we might put a reverse mortgage on our house if need be but even the best of plans can sometimes be thrown off so we hope for the best


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