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Saving For Emergencies

Senior citizens should keep an emergency fund based on the regular expenses they incur…

What percentage of assets which includes mutual funds, stocks and term deposits should be provided as emergency fund for a 60 year old with no financial liabilities?
- Vijay Kakkar

Instead of arriving at a fraction of your assets to create and emergency fund; you should work towards an emergency fund which is based on the regular expenses that you incur every month, which could be for routine expenses to run the house. You should consider 3-4 months of expenses to be set aside as emergency or contingency fund. In case you do keep poor health, you should consider setting aside a separate sum for medical emergencies.

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