Municipal Bond Forum
Better off leaving emergency funds in cash
Q
You missed the whole point of laddering. For retirees, it gives you the cash reserve to cover emergencies if there should be any. If there are no emergencies or you don’t need the cash, you can reinvest it. Retirees live on bond interest and do not accumulate interest to cover emergencies.
A
James A. Klotz responds:
If you work the numbers you will find you would be and would have been better off leaving your emergency and transactional funds in cash while earning 100% to 300% more on your investment dollars.
Start here.
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