Are emergency funds overrated?

[PetMom]

Monkey Mama I read that you do have a good ef, but also about your father and his COBRA running out and that his health insurance will go up to $30,000.00 per year?

How is that possible. He is obviously below Medicare age where he would get coveraage.

But how do they expect someone to make that kind of money for insurance?

He might be in that 'in between' late fifties group.

Some have retired at city only to find out they have to get work to cover the medical insurance and expenses.

Years ago they had not counted on insurance costing what it does now.

And an ef would not be able to rebuild quick enough to cover a super high ins. premium piled on each year.

[BuckyBadger]

I will keep 2 months worth of funds. Seems like there is no reason for anymore than that.

For you, there may be no reason for more than that. For other people, there may be very good reasons for having more.

The level of your EF is a very personal thing. As long as you have enough to sleep soundly at night, then that's the right amount for you to have.

We personally had 3 months. But then we were hanging onto some extra cash before investing it and I realized that I was a little more comfortable holding onto that extra cash that I felt investing it, so now we're up to about 6 months or so.

[dawnwes]

We feel that it is also dependent on job security. Sure, anything could happen, illness, even death, but overall, my husband's job is quite secure. I am not currently working but probably wouldn't have too difficult of a time finding a position if I needed one.

We currently have about 6 months in a money market account and an additional 2-3 months in a an IRA. We feel confident in that amount and have stopped contributing to that fund as of Feb. of this year. We are now contributing that amount to other funds.....car replacement, college for the kids, that sort of thing.

Dawn

[disneysteve]

what happens if you can't find a job for two years or five years? Those are also common situations in corporate America.

Is it really a common situation for someone to not be able to find a job for 2-5 years? Maybe not the ideal job. Maybe not a job exactly like your old job. But no job at all? No way to earn a living and keep the money coming in. I have trouble believing that to be true.