Emergency Fund 4-6 Months Benchmark: Data Analysis on Cash Allocation
Key TakeawaysOptimal emergency fund: 4-6 months of living expenses as percentage of assets (for $2,000/month spending, roughly $8,000-12,000)During 2008 financial crisis, investors with less than 3 months emergency fund showed +45% forced liquidation probability (Morningstar data)VOO/SCHD with $500/month regular investment: 20-year cumulative return difference of ±3....