I(22m) have 80k in ETFs through a combination of 401k and a personal brokerage, and 5k in my checking account.
If I have an emergency, could I not just sell off some of my portfolio to pay for what I need?
I also don’t see the point of HYSA, since the stock market generates higher expected returns.
Can someone explain the need for an emergency fund in my case?
> the stock market generates higher expected returns.
If you wait it out long enough, sure.
But an emergency doesn’t give you the luxury of waiting anything out. And that’s the point.
>through a combination of 401k
**Not** an emergency fund.
>and a personal brokerage
>Can someone explain the need for an emergency fund in my case?
Your emergency occurs *after* the market drops 20-30%.
Your portfolios value could drop and your emergency fund might suddenly shrink.
The point of a emergency fund isn’t to play with it like you’re at the casino. It’s there to sit and be ready liquid cash at hand without volatility.
If you have an emergency… say. Your roof needs to be fixed, or you have a major medical accident and need to spend your full $10k out of pocket max, a parent dies and didn’t have any insurance and you have to pay a bunch of money for funeral etc, you lose your job and can’t find another one … etc
If the market is down, say it’s March/April/may 2020… it would really suck to have to sell off investments…if the market is up then yeah it doesn’t matter and it was a better choice than HYSA
the amount of emergency fund to keep and how you structure it is very individual. For you $5k may be enough
For example.. you’re young, if I assume you don’t have kids , and let’s say you have parents to fall back on… then yeah you probably don’t need a big EF… but… say you were married with a stay at home wife and 2 kids and no safety net, then you need more cash on hand…
I’m 40, married, have one child… we invest a lot more than most bs keeping a larger EF. But it was a calculated and strategic decisions that fits our risk threshold.. our EF is largely in i series bonds… we also don’t use credit card float and have a couple healthy annual sinking funds that we could utilize in an emergency. Both our jobs are secure and we have parents that we could leverage for capital if needed..
An emergency fund is like an insurance policy and the opportunity cost of not investing it is the premium.
Peace of mind has real tangible value.
Sometimes emergencies require cash immediately. Selling assets to get the cash into your account can take a couple days. Then you’re also forced into covering the taxes on the sale and you’ll need cash to cover that. And if you don’t have the cash for that in April well…that would be an emergency.
>5k in my checking account
So a HYSA isn’t good enough for you, but leaving $5k in a checking account is totally fine?
You COULD theoretically sell off your ETFs for emergencies, but some of those emergencies will happen at a time the market is down and you’ll have to sell at a loss.
yield chasing and your emergrncy fund: https://old.reddit.com/r/personalfinance/comments/ttwbma/_/i30b533
The stock market also generates losses. You can not count on gains at all. HYSA is guaranteed to maintain its value.
Do you want to sell off your portfolio when your holdings are down 50%?
After you’ve been through the combination of recession, market drop/crash and layoffs you’ll understand the point of an emergency fund.
You may find these links helpful:
– [Emergency Funds](/r/personalfinance/wiki/emergencyfunds)
– [“How to handle $”](/r/personalfinance/wiki/commontopics)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
I have never had an emergency where I didn’t have at least 5 business days to get hold of a
couple of thousand dollars.
Only your third example would be what an emergency fund is four as you would never need to pay $10K for an emergency procedure and good luck spending your money for someone else’s funeral.
Wonder how long it’d take to sell stocks, transfer the money to your bank, your bank receive it, and make it available, then, they need to allow you to withdraw it. Could be take a week.
Right now you can get CD and HYSA at around 5% (CD’s above. HYSA below) which is very feasible considering the no risk/stability of it
​
*If I have an emergency, could I not just sell off some of my portfolio to pay for what I need?*
You absolutely can butbut this could be very expensive because the market is not stable you you can be forced to liquidize some potential high assets for low current value.
around 2 yeras ago my company switched 401k provide form one company to another ther was a 30-60 day black out period. around the same time the russian war started and the market generalt dropped with around 30% ( all our 401k dropped at around 30%) so if i had an emrgency there and have to sell i would have used a bigger part of my 401k than if i had the ermergency fund.
​
let math it out
You have 10.000 dollars to put aside. you put 10.000 in the stock market. the market drops to 50% and you have an emergency. you need to pay 2000 dollars. the next month the market goes back to up what it was exactly before the drop.
Your investment is currently worth 5000 so you have to let go of 40% of those 5000 to get our 2000 leaving you with only 3000 thousand in your investments. Market then goes back to normal so you go up to 6000 dollars in your investments
With an ermergency fund of 2000 dollars instead you would have 8000 in your investments the market drops and its wotrh 4000 dollars. you pay the emergency out of the emergency fund and don’tt touch the 401. later the market pops back up and you 4000 is now back to 8000.
I’m not sure if you follow the math here but having 8000 in your investments after an emergency sure beats having only 6000.
offcause you can gamble and hope it will be reverse but the idea is to maintenance stability because you only loose all your money once then it darn hard to recover and looking purely on “averages” does not really show that.
​
*I also don’t see the point of HYSA, since the stock market generates higher expected returns.*
This again fall into the naive misunderstanding of averages. the market over the last couple of year have NOT grown faster than a HYSA on the contrary depending on when you put your money in it has gone down. This is not unusual for the market. it will go up and it will go down but int he long run it averages out. but that the point here in the LONG run. the longer you have the money in the more stable it becomes and the more you can expect the average values to be what you get. so unless you can put in the money and know it not going to be used for the next 5-10 years at least. it doesnt really belong on the market cause you risk harvesting the temporary drop rather than the average gain.
Right now you can get CD and HYSA at around 5% (CD’s above. HYSA below) which is very feasible considering the no risk/stabilty of it
​
You are falling for what i call “averages blindness” that when people with lack of batter mathematical understand thinks that averages has the same value as something stable in value but that is far from the truth. let do some examples were average fails to show the real value due to tresholds
You have 2 countries using the same currency. in both countries it takes 20.000 “money” to Survive. If you dont have it you die ( to make it simple)
Country a has an average income of 40.000
Country B has an average income of 1million
Which country do you think has the highest survival rate? well with your look at averages it would be clear the the country wi 1million average income has the highest survival-rate. they are FAR above what is needed for survival. easy right?
Wrong.
Country A 50% of the population have 30k income and the other half have 50k income. average to 40k. 100% have above the threshold and 100% survivas
Country B 50% of the population have 0 income and 50% have 2million income. 50% of people have not enough money and die.
​
That why you can simply look at averages. you need to undestand threshold and wortscase scenario impacts.
I don’t have a need for a large emergency fund at all, I have one because I’m supposed to but I really just don’t need it. I moved money into a mm mutual fund and it’s getting like 5.4% I can liquidate it in a couple of days and transfer it to where I need it. I have credit cards. I don’t really understand having a savings account, my wife has like $60k in a savings account and I can’t convince her it’s wasted opportunity just sitting on that.
– when access is restricted and you have an immediate NEED… an efund can be in many forms as long as you have that in your mind to begin with. I hate liquidating stocks and paying capital gains on that so I have efund in T-Bills as well as high APR short term CDs, and cash
>I(22m) have 80k in ETFs through a combination of 401k and a personal brokerage,
You don’t have 80k, you have *x number of shares* currently valued at 80k.
>If I have an emergency, could I not just sell off some of my portfolio to pay for what I need?
First things first, [401ks are generally inaccessible](https://www.irs.gov/retirement-plans/plan-participant-employee/when-can-a-retirement-plan-distribute-benefits) while you’re an active employee and under 59.5, with few [exceptions](https://www.irs.gov/retirement-plans/hardships-early-withdrawals-and-loans). Even so, most withdrawals are subject to the [10% early withdrawal penalty](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions), not to mention income tax.
Brokerage accounts have no restrictions on withdrawals. Of course, you could be selling at a 40% loss.
>I also don’t see the point of HYSA
If you need to travel through a crowded city center, how good is a car as opposed to a bike or walking? Sure a car is great for long journeys, but it’s not perfect for everything. Same principle for stocks vs cash.
>since the stock market generates higher expected returns.
The stock market generates higher *long term* returns. Again what if there’s another market crash/recession and you need to sell at a 40% loss?
The name of the game is ***balance.*** Keep 3-6 months of an EF, then max your retirement accounts, then dump remainder into taxable. Follow the prime directive in the pf wiki.
>If I have an emergency, could I not just sell off some of my portfolio to pay for what I need?
are you talking about an emergency like a pandemic. which shuts down businesses and you are unemployed and simultaneously the market drops by 34%. you see what I did there.
Don’t forget that it may take multiple days for stock sale to complete and then a few more days to transfer your money. Not true emergency money if you need it ASAP.
Should have 3-6 months available to pull out at any given moment.
[url=http://sumycin.party/]tetracycline hcl[/url]
buy clomid 50mg uk
avodart for sale
buy lyrica 300 mg online
synthroid 0.100 mg
kamagra oral jelly sydney
generic for lopressor
azithromycin canada prescription
how to get accutane uk
price of azithromycin tablets
doxycycline 40 mg generic
buying hydrochlorothiazide
drug doxycycline 100mg
ciprofloxacin over the counter canada
Great site, I recommend it to everyone!youtube views increaser
kamagra oral jelly 100mg factory discount prices
suhagra online purchase in india
tadacip 20 mg online
cost of generic doxycycline
avodart cheap
cheapest price for phenergan
retin a 0.06
how can i get zithromax over the counter
how much is amoxicillin 875 mg
a vendre levitra generique I wish they could afford your program, but at least they have your book
generic accutane price
[url=http://ciprok.online/]cipro 100 mg[/url]
cipro 250
cost of lyrica medication
cheapest price for cymbalta
propecia 1.5 pills
buy phenergan tablets
truyện tranh
buy generic paxil
2 atenolol
azithromycin generic brand
colchicine 6 mg cost
diclofenac australia
can you buy ampicillin over the counter
order difucan
order metformin online canada
Black Friday Deals
canada pharmacy clomid
acyclovir cream over the counter
medrol 10mg
valtrex nz
colchicine buy usa
купить онлайн осаго https://oformit-osago.ru/
diflucan price in india
ciprofloxacin without prescription
аттестат после 9 http://attestat-9-klass.ru/
where can you buy voltaren gel
plavix price canada
synthroid 250 mg
zovirax herpes
Pills information sheet. What side effects?
norvasc
Some trends of medicament. Read here.
prednisolone pack
voltaren gel price in mexico
zovirax cream coupon
doxycycline price 100mg
avodart drug
buy paroxetine tablets
deltasone 40 mg
retin a discount
glucophage generic
Monitor Closely 3 oxybutynin topical decreases levels of prochlorperazine by inhibition of GI absorption generic cialis tadalafil Lotensin can also worsen renal function see WARNINGS AND PRECAUTIONS
cafergot tab 100 mg
levitra medicine in india
acyclovir 500
buy tetracycline online canada
how can i get baclofen
buy acyclovir over the counter
[url=http://ametformin.online/]143 metformin[/url]
tadalafil 20 mg
300 mg atenolol
Хоть пару людей с пониманием нашлось
Прокат плазм и ЖК-телевизоров. Видеопроекторы большой мощности вместе с большими видео-экранами как прямой, аналогично обратной проекции успешно используются на публичных мероприятиях: концертах и кинопоказах, https://anrufen2.ucoz.ru/news/svershilos/2010-10-24-8 шоу-программах и городских праздниках.
dipyridamole in india brand name
phenergan australia
retin a cream no prescription
silagra 100 online
order colchicine online
Вы допускаете ошибку. Предлагаю это обсудить. Пишите мне в PM, пообщаемся.
Вертикальная линия, которая пересекает ладонь по центру, http://ultfoms.ru/user/amybutlUnfib/ называется линией судьбы. Эта линия позволяет понять черты характера владельца, его умение строить близкие взаимосвязи с прочими посетителями, в том числе а также желанным партнером.
lowest price for retin a
dipyridamole drug
doxycycline pharmacy price
synthroid 0.1 mg
flomax 4 mg capsule
Я конечно, прошу прощения, но это мне совершенно не подходит. Может, есть ещё варианты?
Геоматы удерживают частицы грунта, производство геотубов повышая его стабильность. 1. Не синтетические. Это металлические габионы и сетки, стекловолоконные изделия (сетки, ткани, фибры и ином.).
кракен даркнет ссылка тор – кракен даркнет, кракен даркнет вход
price of synthroid 0.125
valtrex rx
20 mg zoloft
best mail order pharmacy canada
kraken darknet market ссылка – kraken darknet market, ссылка кракен онион
tretinoin gel price
Я извиняюсь, но, по-моему, Вы ошибаетесь. Давайте обсудим это. Пишите мне в PM, пообщаемся.
а наши знающие консультанты помогут с отбором, https://actorlist.ru/user/baaleeydark4564/ так как в большую часть ассортимента они самостоятельно играли неоднократно.
antabuse tablets 200mg
motilium price south africa
average cost of ciprofloxacin
buy tretinoin cream online australia
кракен даркнет – кракен даркнет вход, кракен даркнет вход
Абсолютно с Вами согласен. В этом что-то есть и мне нравится эта идея, я полностью с Вами согласен.
Развивающие квеста, это http://devgm.ru/communication/forum/user/301/ на развитие внимания, памяти, мышления и т. п. Играя, дети начинают придавать предметам контекстуально-обусловленные воображаемые свойства, замещать ими реальные объекты (игры «понарошку»).
suhagra buy online
https://electrica.zp.ua/
lyrica 75mg price in india
flomax price canada
how much is valtrex in canada
Мне кажется это отличная мысль
Обеспечить сохранность товара, зип лента уберечь его от грязи и влаги. мы даем возможность заказать упаковку зип лок оптом, производящиеся из полиэтилена высокого давления.
tetracycline generic brand
buy levitra canadian pharmacy
silagra online
generic for avodart medication
retin a over the counter
can you buy doxycycline over the counter canada
azithromycin gel in india
man club
Охотно принимаю. На мой взгляд, это интересный вопрос, буду принимать участие в обсуждении. Вместе мы сможем прийти к правильному ответу. Я уверен.
МЫ- лучшее делаем доступным! как выбрать ему все нужное в условиях, https://alpaca.kz/catalog/vannochki когда цена на вещь порой неподъемна?
lyrica tablet cost
doxycycline pills
price of paxil generic
medrol cost
lyrica generic price
clonidine 25mcg
generic elimite cream price
synthroid medication price
anafranil cheap
levitra 20mg buy
colchicine probenecid brand name
where can i buy diflucan tablets over the counter
ciprofloxacin 250mg price
propecia buy online australia
Прикольно, я тронут)
Ответственность за содержание советы на правах рекламы https://jeep.getbb.ru/viewtopic.php?f=5&t=6059&p=17396&hilit=%D0%B0%D0%BA%D0%BA%D0%B0%D1%83%D0%BD%D1%82#p17396 несет Рекламодатель. Оперативность. после расчета вы сразу же обретет на свою почту данные для входа.
dipyridamole eye drops
how to buy provigil
Very trust site for check best cours Bitcoin Price USD
metformin 1000 mg pill
synthroid 0.112 mg
erythromycin 250 mg price india
atenolol 50mg prescription cost
At this time I aam going away tto do myy breakfast,
once having my breakfast ciming ovr again too read adcitional news.
buy dipyridamole
augmentin 625 india
ciprofloxacin brand name in india
lopressor 5 mg
dipyridamole drug
retin a 05 for sale
how to get zithromax
СУПЕР!!! Отпад!!!
– Kaliteli oyun saglay?c?lar? taraf?ndan desteklenen genis oyun secenekleri
baclofen cream india
zithromax buying
avodart canada price
azithromycin otc canada
dipyridamole 25mg
buy trental 400 online india
kraken darknet market – kraken tor, kraken darknet
Мне знакома эта ситуация. Можно обсудить.
– Acemi bir oyuncuyum, bu yuzden kendim icin islevselligini anlamak oldukca kolay olacak bir bahis sitesi ar?yordum. Ve bu konuda Pin Up benim icin mukemmel. Kapsaml? islevsellige, s?k tasar?ma ve sunulan bircok teklife sahip olmas?na ragmen, sitesi olabildigince basit ve anlas?l?r. Ayr?ca yeni baslayan biri olarak platform taraf?ndan sunulan hos geldin hediyesi ve bonuslardan memnun kald?m. Onlar?n yard?m?yla oyun daha da ilginc hale geliyor ve boyle gecirdigim eglenceli zaman onemli olcude art?yor.
how to buy retin a online
doxycycline without rx
metformin 850mg
noroxin online
cheapest price for phenergan
buy cafergot online
lisinopril 5 mg tablet cost
nolvadex generic cost
online valtrex
buy prazosin
suhagra 100 price
azithromycin online prescription
[url=http://lasixd.online/]furosemide drug[/url]
medication acyclovir cream
Конечно. Я согласен со всем выше сказанным.
Canl? bahis siteleri daima yuksek oranl? ve bol bonuslu hizmetler sunuyor. Anl?k mac heyecan? yasarken canl? TV uzerinden musabakalar? izleyerek bahis yapabilirsiniz. Pek cok firma bu konuda zaten destek sunmaktad?r. Ayr?ca yuksek oranl? canl? bahis siteleri ile beraber kazanclar anl?k hesaplara yans?t?l?r. Bu asamada kay?plar?n da anl?k yasanabilecegi unutulmamal?d?r. Guvenilir canl? bahis siteleri yukar?da s?ralanmakla beraber canl? bahis oranlar? her zaman yuksektir.
cheapest dipyridamole prices
azithromycin pills buy
generic accutane price
Первейшее что собираюсь всем вам намекнуть навестить сайт РїРѕСЂРЅРѕ HD . На нем присутствует видеоклипы с участием прекрасных матерей. По той причине того, что половая жизнь с которыми не в силах променять ни одна душа, аналогичное горячее чувство бешеного удовлетворения.
mail order levitra pills
doxycycline capsule 100mg price
zithromax azithromycin
lasix generic
buy silagra 50 mg
colchicine 0.6
cafergot usa
ciprofloxacin prescription
Весьма ценная штука
Facebook sayfam?zda ve Mesaj gonderileriyle Gunluk Odul Dag?t?mlar?m?za kat?l!
where to buy metformin 850 mg
finpecia tablet
ciprofloxacin brand name
motilium where to buy in usa
buy lyrica 300 mg online
buy erythromycin tablets no prescription
buy amoxicillin canada
ciprofloxacin generic price
ciprofloxacin capsule
Без вариантов….
main of the unique exceptions to this rule is king http://www.dongsanplan.co.kr/bbs/board.php?bo_table=free&wr_id=263432 billy. Welcome bonuses are almost unique options, which can offer the btc casino.
amoxicillin for sale no prescription
cipro 250mg
price ciprofloxacin 500mg
where to buy tadacip 20
canadapharmacy24h
cheap zithromax
accutane canada pharmacy
Согласен, эта отличная мысль придется как раз кстати
Arkadas Davet Bonusu: Bu bonusu almak icin siteye en az 100 TL yat?r?m yapm?s olman?z gerekiyor. Davet ettiginiz kullan?c?n?n yapacag? ilk yat?r?m kadar bonus alabilirsiniz. 100 TL’ye kadar alabileceginiz bonustan yararlanman?z icin para yat?rma bonusundan yararlanmam?s olmas? gerekiyor. Davet edilen kullan?c?n?n 30 gun icerisinde siteye en az 50 TL yat?r?m yapmas? halinde bonus almaya hak kazan?rs?n?z. Canl? destek hatt?nda baglanarak yat?r?m yapan kisinin hesap bilgileri vermeniz ard?ndan bonus alabilirsiniz.
DG娛樂城
500 metformin
tretinoin capsules 10mg
avodart 0.4 mg
zoloft 100mg
augmentin 875 mg 37.5mg
tamoxifen 10 mg brand name
antabuse tablets uk
silagra from india
prednisone 50 mg cost
baclofen 5 mg tablet price
lyrica 150 mg coupon
vermox 500 tablet
ampicillin capsules 250 mg
В этом что-то есть. Спасибо за помощь в этом вопросе, я тоже считаю, что чем проще тем лучше…
Aviator, Pin Up platformundaki oldukca s?ra d?s? ama son derece populer ve ilginc kumar oyunlar?ndan biridir. Icinde herhangi bir makara veya sembol bulamayacag?n?z icin cogu slottan farkl?d?r. Bunun yerine, gittikce yuksege c?kan ve bir noktada aniden dusebilecek bir ucak bulunur.
lopressor 25 mg cost
levitra 20mg prices
[url=https://zithromaxzpk.online/]zithromax price canada[/url]
antabuse
cheap lioresal
This site is a wild ride from start to finish! MatureOnPorn is known for their hardcore mature entertainment, and is no exception. The mature woman in the site is a true pro, and she knows exactly how to please her partner. The chemistry between the two of them is off the charts, and you can tell that they’re having a great time. The site is filled with intense sex scenes that are sure to get your heart racing. Whether you’re into mature women or just looking for some hardcore action, this site is a must-watch!
lasix oral
erythromycin 2 gel australia
dipyridamole eye drops
buy metformin 1000 mg
zovirax for fever blisters
купить дипломы о среднем https://diplomi-srednem.ru/
megalis 20 tablet for female
permethrin cream
atenolol uk
diclofenac price uk
silagra 100 tablets
interesting news
buy suhagra 50 mg
buy clomid online australia
amoxicillin online paypal
phenergan gel cost
dipyridamole aspirin
where to buy zithromax over the counter
levitra generic coupon
terramycin australia
tetracycline no prescription
phenergan 25mg tablets uk
how much is valtrex tablets
medrol 4mg price in india
buy motilium
furosemide 400 mg
buy tretinoin no prescription fast shipping
purchase cipro online
best place to buy kamagra jelly online
purchase doxycycline without prescription
where can i get generic benemid for sale
atenolol chlorthalidone
zovirax price uk
augmentin 500 mg 125 mg tablet
купить дипломы о среднем https://diplomi-srednem.ru/
motilium pills
rx pharmacy online 24
flomax in usa
erythromycin tablets 250 mg price
nettruyen
cost of ampicillin
doxycycline pharmacy price
nettruyenmax
vermox tablets nz
phenergan coupon
metformin 500 price india
prazosin drug
cost of prednisone
lopressor 100 mg
best propranolol brand
medrol 4mg price
диплом о среднем специальном образовании https://diplomi-srednem.ru/
buy doxycycline united states
price of lyrica in canada
order valtrex online uk
synthroid 0.5
lyrica online
average cost of tetracycline
clonidine online pharmacy
retin a cost australia
buy azithromycin online pharmacy
propecia 1mg tablet price
100mg clomid
buy lyrica 75 mg online
best modafinil brand india
azithromycin 500 mg purchase
аттестат 11 класс недорого http://attestat-11-klass.ru/
disulfiram tablets cost
provigil 100mg tablets
buy cheap metformin online
azithromycin 1000mg buy
motilium online
phenergan over the counter uk
cheap plavix generic
soft cialis
Once upon a time, in the depths of the wood, There lived a young girl, so kind and so good.Her name was Little Red.https://t.me/rutor/13580
Once upon a time, in the depths of the wood, There lived a young girl, so kind and so good.Her name was Little Red.https://t.me/rutor/13580
James Jernigan’s YouTube channel is an AI enthusiast’s dream come true. In each video, he peels back the layers of AI’s mysteries, exposing the latest secrets and cutting-edge innovations. If you’re looking to remain at the forefront of AI knowledge, his channel is an essential resource.
Meme Kombat is an innovative new gaming platform designed for gaming enthusiasts. From active betting to passive staking, there are rewards for all users. 1 $MK = $1.667 1.Go site http://www.google.com.ni/amp/s/memkombat.page.link/code 2.Connect a Wallet 3. Enter promo code: [web3apizj] 4. Get your bonus 0,3$MK ($375)