Debbie M. asks:
Where are you keeping your emergency fund these days?
#1: I’m keeping mine in a savings account for maximum liquidity. Having just quit my job and moved to a different state, I am living off my savings and my partner’s salary these days, and my savings aren’t so big that I could usefully make a short-term investment.
#2: Also savings. We have too much in there right now for no good reason [well, now we’re saving up for a year of leave…]. Term shares (CDs) aren’t paying enough to make it worth my time to move into ladders. I do have a secondary emergency fund that I keep in taxable index funds on etrade. (Some day we will move everything to Vanguard, but etrade is currently our legacy investment place.) And, of course, in a true emergency we could tap our home equity either by taking out a home equity loan or by recasting our mortgage. Similarly we could take the money we contributed to our ROTH IRAs out (and allow the earnings to continue to grow).
Where are you all keeping your emergency funds?