HDB Loan or Investment

[Temperament]

Emergency sum should be determined by the expense, rather by income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

Ok Noted. Expenses could be a routine sum and not emergency? Since emergency is out of the blue and it can incur up to big sums. I guess different people has varied mindset on this.

Correct me if I am wrong.

Well, I always start a discussion with definition What is the definition of the Emergency Fund, not a generic one, but the one used by most financial planner?

It should not be an emergency fund for medical expenses. In fact, no fund of reasonable amount, is sufficient for medical expenses. Wealthier families like Brunei Royal medical bill costed ten of million dollars. So insurance should be the one to cover it.

It is also should not be an emergency fund for ad hoc big ticket items.

The emergency fund should be for lose of income, due to whatever reasons. It should cover the essential expenses during the budgeted emergency period.

Much appreciated for your comments.

Each person has different perception of Ideal "Emergency fund". For my case it should be at least 3 to 5 years of "Reserve" as you know how i look at investments at my de-accumulation phase. It is definitely harder to invest for people like me.