Using a Roth IRA to Build An Emergency Fund



One universal piece of investing advice is that everyone needs an emergency fund. Without one, a financial hardship could result in high-interest credit card debt, foreclosure/eviction, ruined credit, or a long list of other issues. The problem with emergency funds is they are traditionally held in savings accounts, not being put to their intended use: making you more money. That’s why my advice to many financial beginners is to invest their emergency fund into a Roth IRA.


First Things First…


If you take any one thing from this site, make sure it’s this: in order to have long term success investing, you should invest in funds with low fees. In most cases, the best place to get low fees with solid returns is in index funds. This is the simplest way to invest wisely and outperform most investors, including investment advisers.