Stop Loss Securities as Savings/Emergency Funds safe? (lemmy.world)

submitted 1 year ago by Copernican@lemmy.world to c/personalfinance@lemmy.ml

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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?

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[-] jubilationtcornpone@sh.itjust.works 3 points 1 year ago

One of the benefits of an emergency fund is instant availability. I can access those funds almost immediately if needed. If my house burns down or gets wiped out by a tornado, I would rather not have to deal with liquidating investments and waiting for the funds to clear. At that point there will be more pressing issues to deal with.

Earning a return on my emergency fund is secondary to availability in terms of importance, to me at least. There are plenty of good options out there for high interest savings accounts.

this post was submitted on 03 Sep 2023

8 points (100.0% liked)

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