this post was submitted on 03 Sep 2023
8 points (100.0% liked)

Personal Finance

3803 readers
1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago
MODERATORS
WandererLagomorph799@lemmy.ml
nieceandtows@programming.dev
nieceandtows@lemmy.ml
8
Stop Loss Securities as Savings/Emergency Funds safe? (lemmy.world)
submitted 1 year ago by Copernican@lemmy.world to c/personalfinance@lemmy.ml
5 comments fedilink hide all child comments
 

Is it safe to treat stocks and ETFs in my brokerage account as savings and emergency funds as long as I have a significant number of lots with a Stop Loss or Stop Limit Order in place? My Savings Account technically doesn't cover 3 months of expense, but combined with my brokerage account it does. Is it safe to be have 1 month in savings and 2 months in stock/ETF with stop loss orders in place that if exercised equate to 2 months of expenses?

you are viewing a single comment's thread
view the rest of the comments
[–] PenIsland@lemmy.world 3 points 1 year ago

I think the conventional wisdom is "no". Cash is king and if you have a legit emergency you want that stability from basic savings.

For me, I work for a company in n NASDAQ (big fucking deal). If the overall market takes a shit both my investments AND my job will be at risk. Liquid emergency savings cover that possibility in a way that stonks and ETFs can't. OFC savings rates kinda suck so there's sort of a loss there too.