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where to park emergency funds

Posted by wigardenerwannabe (My Page) on
Wed, Oct 20, 10 at 23:07

Just hoping for some input on where (ie. types of investments) to put 'emergency funds' as you gradually add to them. I'm talking about in the $10,000 to $22,000 range, but still have reasonable access to it in the event of an emergency need.


Follow-Up Postings:

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RE: where to park emergency funds

The Money Market is a safe investment that gives you immediate access, but an interest rate that runs less than inflation. Otherwise, I'd recommend you find a Certified Financial Advisor to look at your financial situation and help you put together an investment plan to give you 'enough' liquidity, but also some potential for earnings.
JMHO


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RE: where to park emergency funds

Altho the price can fluctuate a little, look at Ginnie Mae funds at Vanguard or Fidelity. Morningstar is the standard for mutual fund ratings. You'll get a better rate of return than with money market funds even with a very slight price fluctuation.

I'll also recommend Bob Brinker's radio program and website. Lots of great information.

http://www.bobbrinker.com/

Here is a link that might be useful: Morningstar ratings


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RE: where to park emergency funds

Hi wigardnerwannabe,

I would *NOT*& recommend putting emergency reserves in *ANY* non-insured account. (period!)

There are good high-yield checking accounts on offer, fully FDIC insured. Yield is in the high 3%s to low 4%s.

Google 'high yield checking' and choose among several specialty websites that do nothing by gather these kinds of accounts to shop amongst.

Luck!
Dave Donhoff
Leverage Planner


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RE: where to park emergency funds

For emergency funds, they should be:

A) 100% liquid
B) 100% Safe

Obviously, a higher interest rate is good, but not at the expense of A or B.


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RE: where to park emergency funds

'Ready' funds? Six months to a year's living expenses. Likely more than $20K. So...where to put $50K? (In a *checking account*? Really? Those I've seen advertised have some strage requirements. I don't use a debit card or need to access pay-per-service cash machines.)


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