this post was submitted on 03 Sep 2023
8 points (100.0% liked)
Personal Finance
3799 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
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
This is generally not advisable, as it would mean you are likely to end up selling during a market downturn, at a significant discount.
Willingness to take risks is one thing but ability to take risks is another one. In you case, since you need the funds in case of emergency, your ability to take risks is 0.
So your options are limited to riskless assets such as CDs, govt bonds, savings accounts, etc.
As you grow your assets and portfolio, naturally, some part of your portfolio will be invested into bonds, and some part into equity. In that situation, you will be able to count the bonds portion, specifically riskless ones, as part of an emergency fund, provided they are liquid and of small duration. But in the meantime, savings account would probably be the way to go