4. Build (or rebuild) an emergency fund
Having an emergency fund is crucial, especially when we are facing the coronavirus pandemic. When it comes to emergency funds, there are some golden rules most people try to follow. For example, some people suggest saving at least three months of living expenses in a liquid account, while others recommend having six or more months’ worth. No matter what rule you want to follow, it’s really hard to achieve that goal, especially when you’re living paycheck to paycheck.
If you’re about to say hello to your golden years, we suppose you already have an emergency fund. An emergency fund of two or three years’ worth of expenses in, for example, a money-market or short-term bond fund could help you weather another crisis while leaving the rest of your retirement portfolio intact. It could save you from being forced to sell investments at the bottom of the market.
