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Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Emergency Fund||Date: 10/2/2007 4:47 PM|
|Author: Tredos1||Number: 21772 of 35498|
<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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