I keep $1-5k in checking and then another $20k in savings account with 1% interest
Net of credit card balances this is about 6 months of expenses saved up.
Other factors: I have liability only car insurance and HDHP...thus a more conservative approach to EF
Today I got to thinking about bonds replacing a bulk of the $20k savings account. In general, if the stock market is going bananas I could sell equities as needed, and if we have a correction bonds could be sold (which would be purchased from this $20k allocation). I guess the danger is a 2008 situation where nothing was safe for a period of time. I've looked into HELOC for springy debt, but short story I don't think it's for me personally.
So, is this a good or terrible idea? What would be the best hedge to a double whammy of bad stock performance & personal hardship? Vanguard TIPS, Vanguard muni (since it would be a taxable account), or regular ole BND? Or am I chasing yield and deserve a mustachian face-punch?