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Old 18-04-2018, 11:25 PM   #11
Maeda_Toshiie
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Thoughts about this article? https://www.betterment.com/resources...vice-is-wrong/

It states that one should jack up his emergency fund by 30% and then invest it into a 40/60 stocks bonds mix.
Potential conflict of interest aside.



The point of the emergency fund is that you know you have x amount of money available for use when you need it. Consider that the scenario that the economy tanks, which also sees the market tank, and you just got retrenched. Then what? It may not be so painful if your emergency fund has been growing for the past 10 years and its value is still greater than the initial amount even if the market halved. On the hand, what if you only had dumped your emergency money into the market 6 months ago only to see it tank 25% and you need to access it?


Now, I'm not against putting a portion of your emergency stash in something like SSB. That's fine, except that you have to account for the time required before you can receive the money after redemption.
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