re: Emergency Fund

I understand where you are coming from.


But my rationale is simply that as long as it can spend 5 years + in there, even if I have to withdraw in a down turn the account has still made money for me. So the imaginary losses don't really matter to me. The money I put in is still there.

As long as you can get that you don't ever lose anything.

Remember, the point of putting it in an investment account is to earn money if NOTHING ever happens and it isn't needed. As long as you can pull out what you put it, you didn't incur any losses, no matter where the market is at. Period.


If you invest as part of your emergency fund it is very important that it be by itself, and not just a part of a larger pot.