We usually only have a couple thousand in our checking, but the rest of our EF is invested in a few individual stocks and some mutual funds. I just don't see the point of having that much money in a money market, etc... I have yet to have such a huge emergency that we couldn't take care of it with the few thousand dollars we had on hand. Seriously, if we needed 20K for a new roof or something like that, we'd sell some stock or a mutual fund.
I find the concept of emergency funds really interesting. I agree that for people that are scraping by they are good thing - but they usually can't save enough to fund them. But, for people that have been saving and built up a cushion of, wouldn't you just be able to liquidate? An emergency for some people ($300 for tires on the car) is probably a nuisance for others.
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