re: Recent College Grad looking to invest in Rainy Day Fund

quote:

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Any sort of investment fund in the market will go up and down with the market; hence it's not very reliable as a 'rainy day fund'!

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How many years do you plan to have it in play?

More than 10?

Because if so, you can suffer a “loss” of 50% of value and still come out ahead.

It’s all about risk tolerance.

But as far as the OP goes, a guy just starting out looking to park money for DECADES, an intelligently allocated Roth is the way to go.

You simply hold a relatively smaller amount of cash in accordance to your risk tolerance and transition as the Roth/taxable funds money “seasons” at a rate that is tolerable to you.

You just don’t go greedy and commit all of your liquid assets, and you don’t commit that designated amount to a more aggressive allocation.