financial plan | blog | keeler and nadler

Sometimes when we discuss establishing an emergency fund with clients, we can almost feel their collective sigh. I agree this isn’t the most exciting part of one’s financial plan. It is much more exciting to discuss investments, retirement income and what the future may look like. But ignoring the importance of a fully funded emergency fund could jeopardize that financial future we are all trying to create.

It has been called an emergency fund, reserve fund or sometimes a “Rainy Day Fund”; meant to be available in the case of an unexpected event. But while we do not know when or what that event may be, we do know that “it” will happen; it will “rain” someday. It might be car trouble, medical issues or even losing a job, but being ready for whatever comes our way protects the financial future you are diligently building.

A rule of thumb for the amount of an adequate emergency fund is three to six months of your expenses. There are many factors that go into determining exactly where in that range you fall and we always want to look at your specific needs. Everyone’s plan is different because everyone’s goals and situations are different; but the thing that remains the same is in life there will be challenges. Let’s be ready for them.