WEBVTT
00:00:08.810 --> 00:00:11.929
Hi everyone, I'm Eric from The Restless Retirement.
00:00:12.330 --> 00:00:15.029
Welcome back to part three of our retirement
00:00:15.029 --> 00:00:20.410
planning course. In this episode, we're talking
00:00:20.410 --> 00:00:24.829
about building a robust emergency fund. Retirement
00:00:24.829 --> 00:00:27.230
sits right around the corner and you've worked
00:00:27.230 --> 00:00:30.269
for decades, you've saved and you've planned,
00:00:30.370 --> 00:00:32.890
but a retirement emergency fund is different.
00:00:33.469 --> 00:00:37.350
It's not just a buffer, it's a fortress that
00:00:37.350 --> 00:00:41.130
protects you. against a world where you no longer
00:00:41.130 --> 00:00:45.350
have this regular paycheck to fall back on so
00:00:45.350 --> 00:00:47.990
today i'm going to break down exactly why you
00:00:47.990 --> 00:00:50.990
need this fund and how to build it in just 12
00:00:50.990 --> 00:01:03.049
months in the working world an emergency fund
00:01:03.049 --> 00:01:07.420
gives you a cushion in retirement it's non -negotiable,
00:01:07.420 --> 00:01:10.680
it's a safety net. But why is your emergency
00:01:10.680 --> 00:01:16.719
fund such a top priority now? Well, first, there's
00:01:16.719 --> 00:01:20.680
the lack of a steady, regular income. Without
00:01:20.680 --> 00:01:23.560
that regular paycheck, a single unexpected expense
00:01:23.560 --> 00:01:28.480
like a major car repair or a sudden dental bill
00:01:28.480 --> 00:01:31.980
can force you to tap into long -term savings
00:01:31.980 --> 00:01:35.500
or even worse. your carefully managed investment
00:01:35.500 --> 00:01:39.799
portfolio. Secondly, an emergency fund protects
00:01:39.799 --> 00:01:44.219
your investments from market volatility. Now
00:01:44.219 --> 00:01:47.200
imagine the market takes a dip right when you
00:01:47.200 --> 00:01:53.159
need to cover a new roof for your home. Without
00:01:53.159 --> 00:01:55.340
liquid cash, you might be forced to sell your
00:01:55.340 --> 00:02:00.939
stocks, permanently damaging your nest egg. Your
00:02:00.939 --> 00:02:04.219
emergency fund acts as a vital firewall keeping
00:02:04.219 --> 00:02:09.120
your retirement savings safe and untouched so
00:02:09.120 --> 00:02:12.240
how do you get this done in just a year well
00:02:12.240 --> 00:02:20.419
here's a simple three -step plan step one set
00:02:20.419 --> 00:02:23.699
your target number forget the old rules of thumb
00:02:23.699 --> 00:02:26.979
your retirement emergency fund should cover between
00:02:26.979 --> 00:02:30.719
six and twelve months of your essential retirement
00:02:30.719 --> 00:02:35.419
expenses This means things like housing, your
00:02:35.419 --> 00:02:39.460
utilities, your groceries and healthcare. Because
00:02:39.460 --> 00:02:42.979
those are the costs you absolutely can't avoid.
00:02:44.259 --> 00:02:47.199
Calculate this number now and make it your mission.
00:02:52.360 --> 00:02:59.819
Now, step two. Start that savings sprint. With
00:02:59.819 --> 00:03:02.509
your number in hand, It's time to get aggressive
00:03:02.509 --> 00:03:07.030
for the next 12 months. Set up a monthly transfer
00:03:07.030 --> 00:03:10.330
from your current account to your emergency fund.
00:03:10.669 --> 00:03:13.650
This makes it automatic and non -negotiable.
00:03:14.430 --> 00:03:17.930
Look back at your budget with a critical eye.
00:03:18.169 --> 00:03:22.090
Can you cut back on any dining out, subscriptions
00:03:22.090 --> 00:03:30.789
or other non -essentials for the next year? This
00:03:30.789 --> 00:03:37.930
is the final push. Do you have a work bonus,
00:03:38.110 --> 00:03:42.349
a tax refund or any other on -time payments coming
00:03:42.349 --> 00:03:46.569
in? If you do, direct it straight into your emergency
00:03:46.569 --> 00:03:53.729
fund. Step three, find the right home for your
00:03:53.729 --> 00:03:58.550
cash. So your emergency fund needs to be in a...
00:03:58.810 --> 00:04:02.810
low risk liquid place this is not for long -term
00:04:02.810 --> 00:04:12.969
investing this is for easy access some of your
00:04:12.969 --> 00:04:16.410
other options may be a high yield savings account
00:04:16.410 --> 00:04:20.709
these offer a better interest rate than standard
00:04:20.709 --> 00:04:23.509
savings accounts and this will help you to grow
00:04:23.509 --> 00:04:26.889
your money with only a slight amount of risk
00:04:28.170 --> 00:04:30.250
Then there's one of my favourites which is the
00:04:30.250 --> 00:04:35.170
money market accounts. These are also low risk
00:04:35.170 --> 00:04:38.089
options that provide easy access to your funds
00:04:38.089 --> 00:04:41.449
and we talk quite a bit about money market accounts
00:04:41.449 --> 00:04:46.389
on this course. The key is that the money is
00:04:46.389 --> 00:04:50.410
safe and instantly accessible. You can't afford
00:04:50.410 --> 00:04:58.029
to wait for a brokerage to sell a trade. Where
00:04:58.029 --> 00:05:01.389
are we trying to get to? Well, peace of mind.
00:05:01.910 --> 00:05:04.730
Let's think about what that emergency fund truly
00:05:04.730 --> 00:05:10.529
brings you. It brings you the freedom to enjoy
00:05:10.529 --> 00:05:13.769
your retirement without the nagging fear of the
00:05:13.769 --> 00:05:18.149
unexpected. It means that when you do get a surprise
00:05:18.149 --> 00:05:21.850
bill or there's a market downturn, your first
00:05:21.850 --> 00:05:23.910
thought's not, oh, how am I going to pay for
00:05:23.910 --> 00:05:27.290
this? But rather, thank goodness that... prepared
00:05:27.290 --> 00:05:35.509
for this. Think of it as like a final gift you
00:05:35.509 --> 00:05:37.970
can give yourself as you step into the next chapter
00:05:37.970 --> 00:05:41.829
of life. So let's start your 12 month sprint
00:05:41.829 --> 00:05:53.810
today. I'll see you on the next episode.
00:00:08.810 --> 00:00:11.929
Hi everyone, I'm Eric from The Restless Retirement.
00:00:12.330 --> 00:00:15.029
Welcome back to part three of our retirement
00:00:15.029 --> 00:00:20.410
planning course. In this episode, we're talking
00:00:20.410 --> 00:00:24.829
about building a robust emergency fund. Retirement
00:00:24.829 --> 00:00:27.230
sits right around the corner and you've worked
00:00:27.230 --> 00:00:30.269
for decades, you've saved and you've planned,
00:00:30.370 --> 00:00:32.890
but a retirement emergency fund is different.
00:00:33.469 --> 00:00:37.350
It's not just a buffer, it's a fortress that
00:00:37.350 --> 00:00:41.130
protects you. against a world where you no longer
00:00:41.130 --> 00:00:45.350
have this regular paycheck to fall back on so
00:00:45.350 --> 00:00:47.990
today i'm going to break down exactly why you
00:00:47.990 --> 00:00:50.990
need this fund and how to build it in just 12
00:00:50.990 --> 00:01:03.049
months in the working world an emergency fund
00:01:03.049 --> 00:01:07.420
gives you a cushion in retirement it's non -negotiable,
00:01:07.420 --> 00:01:10.680
it's a safety net. But why is your emergency
00:01:10.680 --> 00:01:16.719
fund such a top priority now? Well, first, there's
00:01:16.719 --> 00:01:20.680
the lack of a steady, regular income. Without
00:01:20.680 --> 00:01:23.560
that regular paycheck, a single unexpected expense
00:01:23.560 --> 00:01:28.480
like a major car repair or a sudden dental bill
00:01:28.480 --> 00:01:31.980
can force you to tap into long -term savings
00:01:31.980 --> 00:01:35.500
or even worse. your carefully managed investment
00:01:35.500 --> 00:01:39.799
portfolio. Secondly, an emergency fund protects
00:01:39.799 --> 00:01:44.219
your investments from market volatility. Now
00:01:44.219 --> 00:01:47.200
imagine the market takes a dip right when you
00:01:47.200 --> 00:01:53.159
need to cover a new roof for your home. Without
00:01:53.159 --> 00:01:55.340
liquid cash, you might be forced to sell your
00:01:55.340 --> 00:02:00.939
stocks, permanently damaging your nest egg. Your
00:02:00.939 --> 00:02:04.219
emergency fund acts as a vital firewall keeping
00:02:04.219 --> 00:02:09.120
your retirement savings safe and untouched so
00:02:09.120 --> 00:02:12.240
how do you get this done in just a year well
00:02:12.240 --> 00:02:20.419
here's a simple three -step plan step one set
00:02:20.419 --> 00:02:23.699
your target number forget the old rules of thumb
00:02:23.699 --> 00:02:26.979
your retirement emergency fund should cover between
00:02:26.979 --> 00:02:30.719
six and twelve months of your essential retirement
00:02:30.719 --> 00:02:35.419
expenses This means things like housing, your
00:02:35.419 --> 00:02:39.460
utilities, your groceries and healthcare. Because
00:02:39.460 --> 00:02:42.979
those are the costs you absolutely can't avoid.
00:02:44.259 --> 00:02:47.199
Calculate this number now and make it your mission.
00:02:52.360 --> 00:02:59.819
Now, step two. Start that savings sprint. With
00:02:59.819 --> 00:03:02.509
your number in hand, It's time to get aggressive
00:03:02.509 --> 00:03:07.030
for the next 12 months. Set up a monthly transfer
00:03:07.030 --> 00:03:10.330
from your current account to your emergency fund.
00:03:10.669 --> 00:03:13.650
This makes it automatic and non -negotiable.
00:03:14.430 --> 00:03:17.930
Look back at your budget with a critical eye.
00:03:18.169 --> 00:03:22.090
Can you cut back on any dining out, subscriptions
00:03:22.090 --> 00:03:30.789
or other non -essentials for the next year? This
00:03:30.789 --> 00:03:37.930
is the final push. Do you have a work bonus,
00:03:38.110 --> 00:03:42.349
a tax refund or any other on -time payments coming
00:03:42.349 --> 00:03:46.569
in? If you do, direct it straight into your emergency
00:03:46.569 --> 00:03:53.729
fund. Step three, find the right home for your
00:03:53.729 --> 00:03:58.550
cash. So your emergency fund needs to be in a...
00:03:58.810 --> 00:04:02.810
low risk liquid place this is not for long -term
00:04:02.810 --> 00:04:12.969
investing this is for easy access some of your
00:04:12.969 --> 00:04:16.410
other options may be a high yield savings account
00:04:16.410 --> 00:04:20.709
these offer a better interest rate than standard
00:04:20.709 --> 00:04:23.509
savings accounts and this will help you to grow
00:04:23.509 --> 00:04:26.889
your money with only a slight amount of risk
00:04:28.170 --> 00:04:30.250
Then there's one of my favourites which is the
00:04:30.250 --> 00:04:35.170
money market accounts. These are also low risk
00:04:35.170 --> 00:04:38.089
options that provide easy access to your funds
00:04:38.089 --> 00:04:41.449
and we talk quite a bit about money market accounts
00:04:41.449 --> 00:04:46.389
on this course. The key is that the money is
00:04:46.389 --> 00:04:50.410
safe and instantly accessible. You can't afford
00:04:50.410 --> 00:04:58.029
to wait for a brokerage to sell a trade. Where
00:04:58.029 --> 00:05:01.389
are we trying to get to? Well, peace of mind.
00:05:01.910 --> 00:05:04.730
Let's think about what that emergency fund truly
00:05:04.730 --> 00:05:10.529
brings you. It brings you the freedom to enjoy
00:05:10.529 --> 00:05:13.769
your retirement without the nagging fear of the
00:05:13.769 --> 00:05:18.149
unexpected. It means that when you do get a surprise
00:05:18.149 --> 00:05:21.850
bill or there's a market downturn, your first
00:05:21.850 --> 00:05:23.910
thought's not, oh, how am I going to pay for
00:05:23.910 --> 00:05:27.290
this? But rather, thank goodness that... prepared
00:05:27.290 --> 00:05:35.509
for this. Think of it as like a final gift you
00:05:35.509 --> 00:05:37.970
can give yourself as you step into the next chapter
00:05:37.970 --> 00:05:41.829
of life. So let's start your 12 month sprint
00:05:41.829 --> 00:05:53.810
today. I'll see you on the next episode.
