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Originally Posted by SteveR
The danger with this logic is emergencies outside of the work place. Health issues (cancer, heart attack, stroke) or accidents can upset even the best laid plans. If one of you were to become disabled would you still be OK without touching your emergency funds for the next 4.X years? What if one of you were killed by a health issue or accident? How would that affect your finances? I see no reason to necessarily have these funds in an isolated account as long as you consider the money there as an emergency reserve that is only to be used in a true emergency. How you have it invested is not as important as having it.
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Exactly.
How you choose to handle emergency funds aside, don't overestimate your invulnerability. It is rare for a catastrophic things to happen in a predictable way.
I have seen 20-somethings become paraplegic overnight. I have seen 30-somethings develop weird and serious illnesses that not only require tons of care and expense, but can only be handled at a few specialty facilities far from home. I've heard of civil lawsuits outside of work where the defendant's coverage is denied by their umbrella carrier because they claimed the action was negligent or illegal or some other legal exclusion. How about a nasty divorce?
I'm not addressing whether you keep your emergency funds separate or mixed with your main portfolio, just a cautionary note that stuff happens. And sometimes in bunches. And often in a way that you never saw coming.
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Rich
Tampa, FL (ESR-bound. Really. I mean it. Seriously.)
As if you didn't know..If the above message happens to contain medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any medical purpose whatsoever. Consult your own doctor for all medical advice.
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