Annie W said:
re the Emergency fund, how much of the $2 million (spoken of here in forum by a man) for Retirement, should people have on hand ?
or is thousands enough?
An emergency fund is different from retirement savings.
An emergency fund, ideally, should be big enough to fund the replacement of at least the engine or a transmission.
I like having an emergency fund big enough to pay for staying in a motel and replacing the entire vehicle if the SHTF. Yes, my insurance would reimburse me but they can often take their own sweet time. I'd rather be able to do it tomorrow and then wait for them to cough up. Much more comfortable and I'm in control that way. Besides which, my insurance policy is 'replacement cost' which means I pay, they reimburse me. If I can't buy, they aren't paying. And they just might argue over what I had to pay to replace the van itself...we'll argue later, I want the van on the road NOW!
Retirement savings is what you need to have to supplement your retirement income.
The old calculations that said you needed XX% of your working income were based on one maintaining that same lifestyle to which you had become accustomed when you were working. You know the one...mortgage, 2 car payments, golf course fees, 3 vacations in foreign lands a year, etc. etc.
Retirement savings and how much, depends entirely on the individual and varies from really modest to actually needing that 2 mil sitting in investment accounts. Do most of us have that 2 mi...hell no. Do most of us need that much...not those nomads who hang out around here...