ICP064 - Rethinking the emergency fund

In this episode of the Informed Choice Podcast, Martin talks about rethinking the emergency fund.

There's also a roundup of the latest personal finance news and an update from the world of Informed Choice.

Rethinking the emergency fund

All Financial Planners talk about the importance of a cash emergency fund. This is  a  pot of cash put aside to cover any financial surprises in your life.

But why is an emergency fund so important? How much do you need to save? Where should you keep it?

In this episode of the Informed Choice Podcast, Martin answers all of these questions and starts to rethink some of the conventional wisdom about emergency funds.

He describes some scenarios where that old rule of thumb to keep the equivalent of three months committed expenditure in cash is far too little.

Personal finance news update-The price of oil has rallied above $35 a barrel, as support from a weaker US dollar offset investor concerns about oversupply in the oil market.-Average house prices in the UK grew by 9.7 per cent in the year to January, according to the Halifax.-British pensioners overseas could see their state pension income uprated in the future.

-According to a new report, the largest proportion of happy people in England live in Mid Sussex. 

-The charity Age Concern faces an investigation by the Charity Commission, following allegations they promoted unfavourable gas and electricity deals in return for cash. 

-Lloyds Banking Group is cutting 1,755 jobs and closing 29 branches in an attempt to save money. 

Martin and Informed Choice

Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets.

Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement.

“Bamford excels at making even the dullest topics interesting” – Pensions Management

Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter at www.twitter.com/informedchoice.

Follow Martin on Twitter at www.twitter.com/martinbamford or email him at martin@icfp.co.uk.