xyziop wrote:
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.
I agree with the concept of having funds available for emergency, but the
means of having it in a liquid savings accounts dont appeal to me personally.
For one, I have credit card balance transfer that is fairly cheap (<6% interest), which is less than the expected returns of my ETF portfolio. I also have a stable job, and am a young age with better health than my peers, with hospitalisation insurance coverage. If really need be, I can approach my parents for any "bridging loan“ kind of arrangement, or liquidate my 200k ETF portfolio and get the money in 7 working day tops.
Again, I understand why people have "emergency funds", but I am comfortable with my stance on this matter. Back to the article, I dont know if that line of thought is what I would subscribe to, since I rather not touch my investment portfolio.