The Motley Fool on emergency funds
Friday, November 17th, 2006
Categorized as: Savings Bonds and competitive investments
One of the mantras you’ll see over and over again on this web site and in my book is that Series I Savings Bonds are a great choice for the low-risk portion of your investment portfolio.
Everyone should have enough money to live at least six months in an emergency fund. The best place for your emergency money is an investment that’s liquid. Liquid means that you can cash in the investment at any time with no chance that you’ll get back less than you put in.
Investments based on traditional bonds or the stock market don’t work for this. If the market’s down when you need the money, you have no choice but to take the loss.
The Motley Fool is a well-known investment web site that’s mostly about those traditional stock and bond investments, but yesterday even the fools took investors aside to talk about I bonds as a good place for your emergency fund in the article Inflate Your Savings.