Is this money ready for the market?
Separate emergency and near-term money from capital that can tolerate market losses.
Can this money tolerate a loss?
Equity prices can fall when the money is needed most. Separate emergency and near-term obligations from capital with time to recover.
Use this as a decision check
Can you explain both the purpose of the money and the downside without relying on a recent return?
Time does not remove risk
A longer horizon creates room for recovery; it does not guarantee one. Loss capacity and emotional tolerance are different questions.