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Reply to "Why not put emergency funds in a mutual fund?"
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[quote=Anonymous]This is essentially what we do, in that we don't keep a chunk of money outside our investments and label it "emergency fund." If we needed a lot of cash, we would simply cash out mutual funds. However, we have a lot of money invested outside retirement accounts, so we know there will always be enough there to meet a need. If your emergency fund is your only money saved outside retirement accounts, it should be in a cash equivalent to protect principal.[/quote]
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