By Covestor The rule of thumb for emergency funds is to haveaenough saved to cover six months to a year worth of living expenses in case of a job loss or other financial setback. However, investors approaching retirement may want to consider boosting that rainy-day fund, especially since many Americans are living past 90, says Covestor portfolio manager and Harvest Financial Partners co-founder Jim Wright. Wright tells Consumer Reportsathat augmenting the emergency fund can help those in their 60s nearing retirement ride out market volatility and prevent mistakes that will set them back:
Having a financial cushion means you'll be less tempted to sell your stocks duringaa downturn.
So expand your emergency fund to cover more than a year of expenses,aup to five years, says Jim Wright, a portfolio manager at Covestor, an online asset management company.Harvest Financial Partners, based in Paoli, Pennsylvannia, manages the Domestic Dividend Investment Portfolio.
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