Emergency Fund: How much is enough?

I want to thank a former guest blogger, Winston Koh, for showing me a video clip by the famous Suze Orman on the topic of "Emergency Fund".



In case we lose our jobs, it could take us a much longer time to get a new job if Singapore goes into a severe recession. Think GFC. Think AFC.

We would need an emergency fund to tide us over and we do not want to be in a situation where we might have to liquidate our investments at depressed prices. The cost of holding an emergency fund is well worth it. There is no question about this.

Related posts:
1. Why a meaningful emergency fund is important?
2. Nobody cares more about our money than we do.
3. Don't see money, won't spend money.

Fukushima and investing in Japanese real estate.

I have real estate investments in Japan through Saizen REIT. So, naturally, I am concerned about whether there is any progress made at the Fukushima nuclear power facility.

Prime Minister Shinzo Abe seems to be doing all the right things to kick start an economy that has been in deflation for 20 years. He has also openly asked for help from the international community to help manage the problematic Fukushima power plant. Is a solution close at hand?


Radioactivity levels at Japan's Fukushima nuclear power plant on Thursday were 6,500 times higher than the previous day's readings. 19 October 2013.

The situation does not seem to have improved.

Although Saizen REIT does not have buildings within a 20km radius of the power plant, the nearest being 60km away in Koriyama and 100km away in Sendai, the inability of Japan to handle the problem in an effective manner raises pertinent questions since earthquakes are likely to occur again. If nuclear plants in other parts of Japan should face the same problem in future, what then?

Having said this, if we believe that the Japanese economy is turning around and if we want to invest in Japanese residential real estate, it would make more sense to invest in a REIT than to invest in specific properties in Japan. This will lower the risk of a total loss due to natural calamities.

Related posts:
1. Saizen REIT: Sendai, Koriyama and Morioka.
2. Invest in Japanese real estate.
3. December 2011 in Japan: Hakone.