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Old 03-28-2007, 06:45 AM
TheMetetron TheMetetron is offline
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Join Date: Oct 2004
Location: Blog Updated Dec 1st
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Default Re: Emergency Fund: Why Money Market??

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Put it in a bond fund like the one below?

https://flagship.vanguard.com/VGApp/...FundIntExt=INT

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I keep most of my spare ready-to-go cash in an ultra-short bond fund. The above is just a short-term bond fund so it may have more fluctuations. Doesn't make it bad, though. Just realize if interest rates twitch the fund price may twitch the other way a bit more in a short-term fund than an ultra-short fund. Something like, say, MWUSX.

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Yeah, I'd be pretty comfortable with small fluctuations in an emergency fund short term. I think the worst year ever was like -.1% for the fund which is acceptable.
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