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Question 2

“Three months’ expenses” is a simple target for an emergency fund, but the ideal size varies with job stability, dependents, and access to credit. The fund’s purpose is resilience, not to cover predictable recurring shortfalls.

What is true about emergency funds?

Did You Also Know...

By Wise Wallet

Sequence-of-returns risk means big losses early in retirement can disproportionately hurt a portfolio that’s being drawn down.