ETF vs savings for 5 years: how to decide

At 5 years, ETFs may be more reasonable for some people. Use scenario testing to compare.

5-year horizon: time helps

More time reduces the chance you’re forced to sell during a downturn — but volatility still exists.

Is an ETF always better than savings?

No. Savings is often safer for short timelines and emergency funds. ETFs may be reasonable for long horizons.

What timeline suits ETFs?

Many people prefer 5+ years, but it depends on volatility and your flexibility.

How do I compare properly?

Use the same contributions and timeline in the ETF vs Savings calculator and compare outcomes.

Does this include tax/fees?

No. Treat results as estimates and use conservative assumptions.

What’s the simplest next step?

Run a conservative savings scenario and a conservative ETF scenario, then compare.