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re: Emergency Fund

Posted on 2/26/10 at 4:20 pm to
Posted by Cash
Vail
Member since Feb 2005
37251 posts
Posted on 2/26/10 at 4:20 pm to
quote:

If you have to withdraw the money you can't just put it back in when you recover from the emergency.


Which is the biggest reason I vote no for the roth as an EF.
Posted by Dusty Bottoms
Guadalajara
Member since Nov 2006
931 posts
Posted on 2/26/10 at 4:39 pm to
quote:

Which is the biggest reason I vote no for the roth as an EF.


Explain the logic...

You only raid the Roth as a last resort. If you do have to raid the Roth, that means you didn't have cash to put elsewhere OR to max out the Roth. In other words, you're not losing anything because you didn't hit the annual limitation to begin with.
This post was edited on 2/26/10 at 4:49 pm
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