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Subject:  Re: emergency fund Date:  11/3/2003  12:50 PM
Author:  MarleneN Number:  8789 of 36468

ORIGINAL QUESTION: I'm looking for someplace to keep my emergency fund -- the fund with three to six months' of living expenses stashed away in case of unemployment, catastrophy, etc. (Not a place to save for a car or anything like that. Hopefully I'll never have to access these funds.)

Went out to Morningstar and looked up Vanugard Inflation-Projected Securites. they liked it very much (5 star) BUT pointed out that it has been more volatile than the Intermediate Bond funds. They compared it to FGMNX, STVSX, VFIIX, VIPSX.

I did the cost analyzer screen and VIPSX looked really good. Its costs on $10000 are running at $22. That helps it give a better rate of return to the investor over even a three year period. Current year to date return is over 7%.

This looks to me like a nice place to park some intermediate cash. I would like to hear other views on this.

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