No. of Recommendations: 1
Why do you need a cash position? Most emergencies can be handled with a credit card. Then you have until the end of the billing cycle to decide where to come up with the needed cash. Perhaps you have stocks that can be sold at a profit? Or cash coming form other sources etc.

When you have assets and available credit you have many choices and cash position is much less necessary.

I would interpret that cash position as a fixed income requirement. A CD is a good choice. When the need comes up, you can decide if its worth it to pay the early withdrawal penalty. You can also do several of them with staggered maturities so hopefully you won't have to cash more than one to cover your cash need.
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