How do you view your retirement assets and rainy day fund?

Many of us live for the moment - putting nothing away for retirement and worse still not having an emergency fund to help you weather the storm during those not so good days of the cycle of life.  

As a result of the "Great Recession" instead of adjusting one's standard of living to meet current level of income many of the "underemployed" and "unemployed" have been draining their 401(k) s and IRAs - all in an effort to maintain lifestyles at levels that are not sustainable.  Generally people find it difficult to face their predicament but denial is not a workable alternative either. 

For the "underemployed" it is understandable to either reduce the amount being deferred (put away) for retirement or alternatively you can freeze the contributions for a short while. The best way to avoid dipping into your retirement assets is to ensure you have an emergency fund to cover your expenses while you are not gainfully employed.

Ideally one needs between three and six months of living expenses set aside to fully fund your “emergency fund”.  That is not to say once you reach three or six months you stop - no it would be more conservative in today's world to work around six to nine months. Many have experienced longer and longer gaps between jobs and sometimes you might realize that you need to re-invent yourself to meet the requirements of the current job market.

Edited 10/11/2013