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Subject:  Re: Emergency Fund Date:  10/2/2007  4:47 PM
Author:  Tredos1 Number:  21772 of 35930

Hedge wrote:
<i>Due to the potential fluctiations of bond fund NAVs, it's probably not a good idea to put emergency money in a bond fund - you may come up short when you really need it.  The same is probably true of a money-market fund.</i>

I'd like to understand more about the risks of a money market fund you allude to. I keep my emergency fund in an Insured Money Market Account at the credit union. This account gives me acceptable interest (4.25%) and is insured. What can go wrong? I know I can get more interest in CDs but I like the liquidity of just doing an electronic transfer to the checking account if I need it.

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