Talk:Emergency fund

I don't think that adding a controversial perspective, then linking to a controversial wiki page is appropriate - at least without discussing this first.

Added by Nisiprius, 12:38, 2 July 2013‎: "Controversially, some argue that an emergency fund can also provide security against having to sell longer term investments at inopportune times (e.g. selling equities during down markets); those advocating this approach generally recommend larger emergency funds than those who define emergencies solely in terms of unanticipated expenses. Thus, for example, a U.S. News writer, in an article entitled 'Increase Cash Reserves in Retirement', suggests '3 to 6 months' living expenses for workers, but 'at least a year' for retirees, because 'the average length of a bear market is around a year and a half, so two years worth of cash reserves is likely to be a prudent amount.' This approach is related to the 'buckets' withdrawal strategies, also debated."

--LadyGeek 15:58, 2 July 2013 (CDT)

Reader feedback: Use of an HSA as an emergency fund
LinusP posted this comment on 10 June 2019 (view all feedback).

"I was looking for a section on using an HSA as a 'later tier' emergency fund - specifically, the amount that could be reimbursed due to qualified medical expenses paid out-of-pocket. This is along the same lines as the existing section for Roth IRAs, and I'm particularly curious about which (Roth or HSA) should be withdrawn from first if 'earlier tier' emergency funds are used up."

An HSA is not a true emergency fund because the money must be used solely for medical expenses. A Roth IRA is cash that can be used for any unanticipated need.

If there is an unanticipated need for medical expenses, the decision of ("HSA" or "Roth IRA") to use first may depend on the investor's individual situation.

It may be appropriate to mention that an HSA can be considered as a source for unanticipated medical expenses. I'm not sure if / how this could be added to the page and will defer to the experts. LadyGeek 00:08, 11 June 2019 (UTC)
 * My understanding is that funds for qualified medical expenses that have been paid out of pocket can be reimbursed years after the fact, as long as there's appropriate documentation. So as long as you have the documentation, and don't withdraw more from the HSA than the total of those previously un-reimbursed expenses, it doesn't matter what the source of the emergency is - you can use the reimbursed funds for whatever you want. But I can defer to the experts on this as well. LinusP 05:29, 11 June 2019 (UTC)