Christine Benz provides tips to quickly access emergency funds, including liquid investments and home equity.

From Yahoo Finance: 2025-06-09 16:30:00

Morningstar’s Christine Benz provides a valuable checklist for accessing emergency funds quickly when needed. She advises using highly liquid investments like bank savings and money market accounts, but warns against dipping into tax-sheltered assets. Consider taxable accounts with minimal penalties for withdrawal, like taxable bonds and high-dividend stocks.

For more efficient cash access, look to municipal bonds, individual stocks, and equity ETFs. Roth IRAs and traditional 401(k) accounts offer different options for quick money, including loans and hardship withdrawals. Life insurance policies can also provide emergency cash through withdrawals or loans against the cash value.

Homeowners with at least 15-20% equity can tap into a home equity line of credit for emergency cash. Be cautious of high interest rates and credit requirements when considering this option. Overall, it’s essential to have a plan in place for accessing funds in case of emergencies.

Read more: Need Quick Cash? Christine Benz’s Top 5 Tips to Boost Your Emergency Fund