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I was curious what is the best why to invest money into a emergency fund...Do you think that money market would be the best place to stash a couple thousand just in case? Or would it be better to invest that money if a couple of strong stocks and let it grow and take it out when you need it?

Also, being 20, in college, and I do not have kids of my own (at least for 5 more years or so) what would be the best way to go about an IRA?

Okay I just remembered one more question from my now a bad time to invest in lets say the vanguard 500 fund because the market is low? I feel that it could be a great time because prices are a bit lower???

I just so many great responses last time I posted a question that I thought I would try it again! Thanks for all the time you guys put into responding

Dear sheliac101,

Actually, emergency money shouldn't be in stocks. The stock market fluctuates too much for someone to depend on it in a real emergency. Imagine if someone had invested emergency money into something that declined 30-40%? That wouldn't be a good thing!

If you would like to *really* learn some great ideas, I'd suggest you look into one of our new Crash Courses, either 'Where to Stash Your Cash' located at


the 'Financial Self Defense' course, located at:

Crash Courses are a new product from the Motley Fool. They're like mini-seminars that you can complete in 60 minutes, and geared towards investors like yourself with very similar questions and situations.

Fool on!

Karen Kosoy
TMF Karen
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