September 16, 2013 at 6:58 AM
Using a Roth IRA as a backup-emergency fund
Use a Roth IRA as both an emergency fund and retirement savings? [“Roth IRA can be a backup emergency fund,” Business, Sept. 8.]
That is unwise. Folks who take that advice are likely to liquidate investments when the market is down to fix the car.
That will lead to disappointment. Disappointment will lead to an abandoned retirement plan. Sure, you could leave enough of the Roth IRA in cash to cover emergencies, but that is no solution.
In the long run, everyone needs a separate emergency fund in addition to a retirement plan that is invested for long-term growth.
Brian Wright, Seattle
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