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What are you using for your liquid cash/emergency fund

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  • What are you using for your liquid cash/emergency fund

    I have been using amex savings 1.55% taxable for years.  I recently transferred a 5 figure sum to vanguard with the purpose to invest in municipal money market with sec yield today of 1.54%.  I started also looking at short term tax exempt (1.66% sec) and limited term tax exempt funds (1.96%) as well, for at least part of the money.  Seems like these funds don’t have more than a 5% drawdown in recent times which I could tolerate.   Still undecided.

  • #2
    For EF, I just use Ally.  In an emergency, you just want the money to be there.  Missing out on 0.5% growth on a few months' expenses just isn't going to make or break you in the long run.

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    • #3
      I just put it in my savings account.  It's easy.  My efund is like 1% of my net worth, so I don't worry about it.  If I did I would be thinking about opportunity cost every time I went to a nice restaurant on out on vacation or needed to do a home repair.  Not worth it to me to worry about these things.

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      • #4
        1) Usually extra money sloshing in my checking account

        2) Payroll/credit card float

        3) VMSXX

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        • #5
          i use int term TE and ltd term TE as TLH partners for my 2nd tier EF.

           

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          • #6
            Ally

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            • #7
              MMF at Vanguard.

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              • #8
                amex has an online personal savings also at 1.55%; capital one 360 has cds with 12-month rates over 2%.  That's where I put the bulk of mine.

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                • #9
                  dollarsavingsdirect

                  1.8% online savings, FDIC insured

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                  • #10
                    First, I don't subscribe to the term "emergency" fund. I prefer the concept of "contingency" funds. Not all needs are immediate or solely for emergencies.

                    I have always used tiers for this purpose. From longer term to immediate access; municipal bond funds, CDs, I-Bonds, online savings, B&M savings and cash.

                    You can use, but should never rely on credit as it may go away when you most need it. In the "Great Recession" my HELOC was cut to the current balance and several credit card credit limits were severely reduced.

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                    • #11
                      I have about 3 months of expenses in a savings account. Between a personal line of credit and a credit card, I have enough credit limit to supply 8 months of expenses if I get in a real crunch. Also, I have about 6 months of expenses covered by the bond portion of my taxable investment account. I feel fairly confident that those should get me through whatever crisis develops.

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