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Greetings, Radardeb, and welcome.

<<I agree about not keeping 3 months' income as emergency funds. I'm a single mom, so I'm more vulnerable than most, but I also need to maximize my gains for retirement, and I just can't stomach the thought of 3 month's salary sitting out there earning even money market rates. So I keep mine in my discount brokerage account and figure that my paid off credit card is my insurance against a rainy day. I'd rather pay the interest for 3 or even 4 months on the credit card while I waited to convert some stocks to cash than keep those funds out of the market. Assuming true "emergencies" don't come up all that often, I think I come out ahead this way.>>

And there's absolutely nothing wrong with that as long as you're comfortable with it. Some folks don't like the volatility of anything beyond that of money market funds or short-term bonds and CDs. Others are content to run the risk of stocks or stock funds. It's just one of those personal choices we all have to make.

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