Risk, time and your ability to stay invested
A temporary loss feels different when the money has a near-term job.
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.