[anonymous_saver]

I would honestly keep the 6 months of an emergency fund in a normal high interest online savings account. My reasoning is that an emergency fund is not only if you happened to lose your job, or became disabled, or something like that, it can also be in the chance that you have a major thing go wrong with your house or car (for example, what happens if it's winter and your furnace broke down, you would immediately need that money to fix the furnace or buy a new one). If you had 6 months of expenses, you would likely be able to cover this within a day or two. If you had your money elsewhere, it would likely take you longer. Plus, is your money in your mutual funds and stocks set aside for retirement? If they are, this is a bad idea to take money out from there for reasons such as losing your job, that is kind of the point of an emergency fund in the first place.

You said that you would like to put that $600 or so of interest every year to "do something with" such as putting it into stocks, or a mutual fund. I disagree with this strategy slightly. Let's say inflation goes up every year by 4%, then the emergency fund that you had 2007 would not be worth as much as it would be worth in 2008 if you took out the interest every year. You could maybe take out a $100 or so, but then it probably wouldn't be worth it.

Just my two cents. I do however, congratulate you on what seems to be good financial planning! =)