Funds that hold Treasury securities or highly-rated corporate bonds that mature in one to three years would be suitable. As with bond funds, you risk that the market will be down just when you need the money. Others say keep some of your money in these investments if you're trying to build a longer-term fund. Odds are you won't need the money for an emergency, and meanwhile you could be building a future college or retirement fund. A financial emergency can be devastating to most individuals and families.
Emergency planning is essential.
I advise you to consult with a financial planning professional and develop a full financial plan. As in the past, I am happy to offer the readers of the Route 422 Business Advisor a free consultation. If you are interested in taking advantage of this offer, please contact me directly. Planning Prevents Poor Performance. John A. Paciello is a Certified Public Accountant and Certified Financial Planner.