No. of Recommendations: 1

I keep mine in passbook savings where I can do a transfer on the web or over the phone quite easily. I am not concerned with it not earning money. I would be concerned having it in a bond fund since NAV goes up and down and you may lose liquidity for trade settlement.

You can create a ladder(CD/bond) or use a cash and near-cash method. I use the latter. I keep 6 to 12+ months in passbook. I have an old IRA insurance annuity that pays very decent interest with 5+ years in it. It would take 3 days to get cash transferred from this account. I have not used it since retiring 8 years ago. I have refiled cash from trimming stock and dividends.

If I didn't have the old IRA, I would look at a couple TIPS, short-term and/or intermediate-term bond funds/ETFs to put the longer term money into. If you have it spread across a couple funds with different investing horizons, you can pick and choose which one to grab money from if needed. You'll have a better chance of not selling something low.

There could be price pressure on longer term bond funds. The shorter term funds will change-out quicker and hopefully not get hit as bad.

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