re: Emergency Fund

quote:

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I kept all cash "working" for me and had a 20k personal line of credit I could tap at any time. Then 2008 came along and the bank cancelled my LOC, a week before I received notice that I was being laid off. It was amazing how fast I went from what I thought was being perfectly set up to the brink of having to liquidate holdings right at the bottom.

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But how much more did you have though by not having had to "set aside" anything? For example, if you put $1000 in a Roth and $4000 in a savings account when you could have put the full amount in the Roth, the latter is still the better choice even if you lose your job, etc.