I went with VSB as my emergency fund, able to cash out if I ever really need to, with lower risk of losses. Short term bonds have less interest rate risk if I hold them for thier duration.
Thanks for the tips on using bonds as an emergency fund. I have never really had what I consider an emergency fund. I always keep few K bank balance, so I pay no fees, combined with the overdraft, that is probably about 3 months emergency fund. I also have a "squishy" debt LOC that I could use.
However, I would really hate to pay fees &/or interest to cover an emergency.
But thinking of bonds as an emergency fund is a good idea, and for that they may deserve a bit more attention in my allocation.
Ie Save equally in bonds and equities until bonds reach 20K or my asset allocation % whichever is greater.
Thanks