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CoolCly
02/24/21 2:04:51 PM
#406:


I really hate the idea of using your emergency fund to cover a margin call. The most likely time to need to do that is in a steep market decline - which is a time when you can't liquidate market holdings without locking in losses if you need cash to support yourself IRL if something bad is happening like you've lost your job (which can very naturally be correlated with a steep market decline).

Putting extra money you have on hand into the stock market during a decline isn't a bad idea because it's a good time to get some discounts, but being *required* to do it for a margin call at a time when might need that cash for something else is dangerous. The cash flow is going the wrong way!

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