What if unanticipated expenses exceed your emergency reserves? You have options, and I’ve ranked them from most palatable to least.

1. Your own emergency fund/short-term securities

Emergency funds should be held outside of tax-sheltered wrappers and include highly liquid investments like bank savings accounts, money market accounts, and so on. If you’re working, your emergency fund would ideally hold a minimum of three to six months’ worth of living expenses; retirees should target one to two years’ worth of anticipated portfolio withdrawals.

2. Low-risk assets in taxable account

Your next source of cash is other taxable holdings: investments in brokerage accounts, outside tax-sheltered vehicles. When identifying securities you could sell, focus on liquidity, tax consequences, and transaction fees.

In a best-case scenario, you’d have a short- or intermediate-term bond fund to sell. It’s reasonably liquid, and you’d already have paid taxes on most of your gains.

3.…