Since you can pull the original contributions out of a Roth IRA, we've been thinking of using this rather than a regular savings account for our emergency fund. After all, we only plan on using it for emergencies. We're still keeping a small amount in a regular savings account for unexpected expenses (though we've generally been able to just pay these with income) and I'm fully insured for life/disability/etc. through my job (we live off of less than my income, my husband's is smaller but we could make that work in an emergency).
My Roth is currently w/ Vanguard. I'm trying to come up with a couple of funds to contribute to that would give some security in the event of an emergency, + another index tracker so that the Roth can still perform in the event there are no emergencies (say 3 funds total). The idea would be if I need to pull money out, pull it out of the fund that is not currently losing money (or losing the least).
Does this make sense? Any suggestions for a 3 fund mix?
(And if there's another thread on this, happy to just read that, but didn't find one in a search.)
Thanks!