Now that you’ve retired, your emergency fund might look a little different from your working years, not only in the size of the fund but also for items on which the funds might be used. While working at Lockheed Martin, you had a weekly paycheck. In retirement, you have a monthly pension check.  So, how much should you have in your emergency savings fund?

Your emergency savings fund should still be in place once retired and possibly even larger depending on your situation.  While working, most people have3-6 months of expenses set aside, so they can cover a gap in employment if necessary; however, when retired your pension isn’t in jeopardy but your emergency needs could be much larger if the emergency is a result of a medical, dental or home incident.  If you have one of these emergencies, you need to have the cash on hand to pay for it and still pay for your monthly expenses. So, first, use our calculator found here to calculate your monthly retirement expenses by adding up the following: 

  1. Housing costs for both primary and any vacation homes
  2. Food and entertainment
  3. Utilities, phones & other recurring bills
  4. Auto costs – payments, insurance, maintenance, etc. 
  5. Debt payments if you have any
  6. Health care expenses and medications not covered by insurance or Medicare
  7. Insurance premiums for health, life or long-term care insurance
  8. New hobbies acquired in retirement
  9. Travel
  10. Costs associated with any side business

Once you have these add up, you now know your minimum monthly expenses. Next, determine how many months of expenses you’d feel comfortable with having set aside in a FDIC insured high interest savings account.  Many retirees prefer to have 6-12 months in savings; whereas, other retires like to have a specific dollar amount (ex: $20,000).  After you have decided which you’d prefer and the amount, then it’s time to either start building to that amount or rearranging your current portfolio if you don’t already have that amount in savings.  

Determining the right amount to have in an emergency savings is an important part of living a secured retirement with peace of mind.  Give us a call to speak to a Lockheed Martin retirement specialist who can help you determine the appropriate amount of emergency savings for your situation.  

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!

 

Disclosures*

Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.

 

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