Skip to main content
No. of Recommendations: 0
i'll volunteer to be the crazy person :

my Emergency Fund is in the RP4
[not suitable for all investors] --

Small emergencies, write a check against Margin (cheaper
than CC)

Big emergencies, liquidate part or all of the stocks,
immediately or over time.

Downside (BIG) -- may have to liquidate in a down market.

Upside --possibly earn significantly above MMF.

i prefer RP4 for this instead of other stocks because,
try as i might, i get emotionally involved with my
others and it would Hurt to sell before i was ready.

but one has to seriously consider the possible emergencies and
each of their likelihoods.

(note that the Downside decreases over time -- 3 or
4 years of +20% and the market will have to seriously
tank to get you back behind MMF rates. otoh, a serious
drop in the first year could cause much heartburn)

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.