I have about 2 months of expenses in my online MMF. I have about another 1-1/2 months in a CD. The rest is spread around a number of places including small amounts in 2 other money market funds (one in my brokerage account and one in my insurance account) but otherwise invested in the market. We also have some Series I bonds, but I'm planning on cashing those in this summer to pay for our daughter's Bat Mitzvah expenses. And yes, we do keep physical cash on hand for immediate needs if the banking system is offline, like in a natural disaster.
One thing that I think people often forget is that you won't ever need your 6-months worth of expenses all at once. You'll need it gradually over a 6 month period. It doesn't all need to be instantly accessible. Plus, you can always use a credit card until you retrieve your money and then pay off the account.
Someone asked about using a HELOC for an EF. Here's my problem with that. You have some major emergency - a job loss, a serious illness, etc. If you have to borrow to cover expenses, how will you make the payments?
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Steve
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
* The world is a book and those who don't travel read only one page.
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