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As true "emergency" money, consider a home equity credit line, if you are in a position to get one and currently have minimal credit debt. That way, you're "free" to invest your extra cash in the manner you're comfortable with.

The problem with a HELOC as one's emergency plan is that if one's income stops for whatever reason (e.g., layed off), the HELOC can also disappear. And if one doesn't already have a HELOC, one won't be able to get one without some sort of income. (Some people think banks will loan based on the collateral. Reality is that banks loan based on one's ability to pay back, foreclosing on the collateral being a recourse if payments aren't made.)
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