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If I have a mortgage and investments and they both decrease in value and I lose my job, do I have to worry about losing my house?

I would label this as "it depends." A couple of ways I reduce risk are: a fully funded emergency fund that has the equivalent of 6 months of living expenses, and having 25% of my taxable investments in bonds so it isn't as volatile as an all stock portfolio. I would also label it as unlikely that a diversified large caps stock portfolio would go all the way down to zero, thought a deep drop isn't unheard of (e.g., DJIA drop of 80% from 1928 to 1932).

A multi-year period of no income and stock market decline at the same time could cause me to lose my place to the mortgage company.

But then again if I don't have the money for property tax because I paid down my mortgage and don't have liquid assets, and I don't have a job so I cannot get a loan, I could lose my place to the county tax collector.

Either way, there can be risk involved, whether the mortgage is paid off, or whether the money is used for a diversified portfolio. Which way really has more risk? I really don't know.
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