Financial Planner Reveals How Much Money Soon-to-be Retirees Should Have In Emergency Funds

Many people save in emergency funds to manage unexpected expenses like medical bills or home repairs or to support themselves during job losses. However, high borrowing costs, stagnant wage growth, and lower-than-expected job openings have significantly strained U.S. household budgets, making it challenging for Americans to save. According to a 2024 Empower survey of over 1,100 U.S. adults, over 20% had no emergency savings, and 37% couldn't afford a $400 emergency expense, mainly due to high-interest credit card debt and rising inflation.

For those nearing retirement, emergency funds may be a lower priority as they focus more on planning for 401(k) and Social Security withdrawals. While financial experts usually recommend an emergency fund covering three to six months of expenses, Mamie Wheaton, a certified financial planner, suggests that retirees should aim for 12 months of liquid savings. This larger cushion can provide added security, particularly during market downturns or when facing unexpected costs that aren't covered by insurance.

Wheaton emphasizes that having readily accessible cash can prevent retirees from withdrawing from their retirement plans during unfavorable market conditions. She also highlights that medical expenses, which may not be fully covered by Medicare or private insurance, can become a significant financial burden in retirement. A well-funded emergency reserve can protect retirement savings from being depleted prematurely, allowing the money to continue growing and maintaining financial stability. (Full story)

In 2011, Charles Coristine transitioned from a high-pressure career on Wall Street to the snack food industry, purchasing the struggling LesserEvil company for $250,000. Despite his lack of experience in the food sector, Coristine was drawn to the brand's mission of healthier snacking and committed himself to reviving it. Under his leadership, the company moved production in-house, experimented with innovative ingredients like coconut oil, and launched successful products such as the Buddha Bowl. Despite facing setbacks, including a 2023 recall due to lead contamination, LesserEvil grew significantly, achieving $62 million in net sales in the first half of 2024 and securing additional funding to expand. Today, LesserEvil thrives with 280 employees, and Coristine, now enjoying a healthier work-life balance, continues to drive its growth and innovation. (Full story)

Chris Donnelly, a social media business commentator, recently highlighted the exploitation of Daisy, an employee burdened with excessive work demands from her boss, James. Despite her late nights, weekends, and pleas for manageable hours, James dismissed her concerns, pushing for more "flexibility." Daisy's complaints to HR about the unsustainable workload led to little action, and she ultimately resigned when her situation remained unchanged. Her experience reflects a broader trend of workplace burnout, where employees face relentless pressure and inadequate support, underscoring the urgent need for companies to address employee well-being. (Full story)

When Karina F. Daves, a relationship coach, began earning four times more than her husband, Terrance, it led to a shift in their relationship dynamics, causing Terrance to experience feelings of insecurity and jealousy, prompting him to seek therapy. Initially, Terrance earned more as an auto technician, but as Daves' career progressed into the tech industry, her income significantly increased, allowing Terrance to accept a lower-paying job to better balance childcare responsibilities. Despite their income disparity, the couple maintained a joint financial approach and prioritised open communication to address their challenges. Their journey underscores the importance of understanding and addressing underlying emotions, such as jealousy, that may arise when financial dynamics shift within a relationship. (Full story)

At the Texas Tribune Festival in Austin on September 8, conservative comedian Alex Strenger, disguised as a Democrat, was escorted away after heckling Democratic Congresswoman Nancy Pelosi about her stock trading activities while she signed copies of her new book. Strenger praised Pelosi's defense of democracy but suddenly asked her for stock-buying tips, calling her the "greatest options trader ever." As he was removed by security, Strenger continued criticizing Pelosi’s wealth, highlighting her significant gains from stocks, which has fueled ongoing criticism of alleged insider trading due to her and her husband’s financial activities. Despite Pelosi's consistent denial of insider trading allegations, she now supports legislation banning Congressional stock trades. Tracking platforms suggest that copying Pelosi's trades could yield high returns, but experts warn of the risks involved, advising caution for average investors.

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