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Ok, I know this is not for everyone but hear me out.

I do not wish to keep 6 months in a "safe" harbor. But, I do keep one thousand cash in the bottom of my checking account. The excess (not for investing) I keep in what I call an alternative investment.

HOLD ON FOOLS, not *that* kind.

I buy dividend stocks (Merck, Pepsi, Power Utils) in an account with my bank. If I ever lose my job I have an agreement where I can borrow against the stocks at arounf 8% (not great, not lousy). This helps shield me from a dip in the job and stock market, while helping my get a better return thana lousy CD or savings.

About the transaction fees...

I read where people may wish to keep the E-fund in CDs. Well, if you cash out a CD prior to term you still get hit with penalties.

Thoughts, suggestions on my strategy?

Background: I'm 24, college degree, enough computer certs where I can at least get a helpdesk if I ever get laid off. I maxed out my IRAs and 401K and as much as I am comfortable with in insurance "investments" [half scoff, half chuckle])
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