Artsdoctor wrote:You'd probably be best served by defining emergency. … if it's just a matter of taking an unexpected trip to Rome because there's an opportunity that presents itself, I don't really want to pay fees to do that.
Good point. In my case, it is for real emergencies. I'd never dip into the emergency fund for non-emergencies. And unless a close relative suddenly moves to Rome and passes away, I can't imagine ever defining a trip there as an emergency.
Seattlenative wrote:Unless you are appointed by POTUS to a Federal judgeship, there is literally no such thing as a "permanent" job in the U.S.A. Period. Anyone who thinks that they are completely immune from ever losing their job, or having their spouse lose a job, is kidding themselves.
Apologies if what I wrote came across that way. That certainly wasn't my intention. I agree with you. Anything can happen—to you, me, or anyone. My point was simply that in any given year, I am either losing my job or not losing my job. Most years I am not losing my job. So shouldn't I adjust my behavior to match that reality? I've done so and am increasingly happy with my decision to invest half of my emergency fund in a 40/60 portfolio.
As an example, if my fund is 6 months of *necessary* spending — I would be going into emergency budget mode, so it doesn't need to be 6 months of my regular life-is-great budget — then that still gives me 3 whole months to figure out my next move before touching even a penny of the invested funds.
kellyfj wrote:…wondered if I should be buying shotguns and water rather than investing in my 401k
I guess I just refuse to live in that state of anxiety. If things are really so bad that I need to arm myself to survive, then it probably doesn't matter much what my money is doing. I'll sell low to buy a tank and not think twice about it.
kellyfj wrote:Just one thing to notice - these types of questions ONLY ever come up when the market is near a top - I doubt anyone was asking this in the 2007-2009 timeframe
I can't speak for anyone else thinking about this topic, but as I mentioned earlier, I am new to investing. That combined with the fact that I don't watch the markets since I am not trying to time them, means that I would have been asking this same question circa 2008.
I’m a firm believer that good investment advice should remain good investment advice regardless of what the market is doing.
Cheers (to all, including and especially Packet)! I may go to a local brewery here in LA later tonight thanks to this thread. That is an investment I will never regret.
“For wisdom is a defence, and money is a defence: but the excellency of knowledge is, that wisdom giveth life to them that have it.”