36yo with emergency fund built up that covers 1 year of expenses (and is about 4% of investable assets).
I built up to a full year when I was working on a contract to contract basis. And while the work was high demand, I wanted to make sure I had a solid emergency fund in place just in case. As such, the emergency fund has been in a high yield savings account for maximum peace of mind.
Now I’m in about as solid an employment position as one can be in this time (knock on wood), and haven’t touched the emergency fund since it’s been saved (about 6 years).
Mentally, I still like treating the emergency fund separately from my AA (80/20). I’m wondering if I should consider investing the emergency fund in something like a Vanguard Wellesley to still keep the money pretty conservative while also hoping to do a better job of beating inflation.
Curious if anyone has thoughts (or input based on what there doing) on either other funds or just asset types (Municipal Bonds, treasuries, etc) that might make sense in this type of scenario? Or is this juice even worth squeezing?
You may need or want a cash position, but the first line of your post suggests you are by all accounts financially independent. If your AA calls for cash, put some money in cash. But I don't think anyone that is financially independent needs an emergency fund.
Statistics: Posted by Pepper11 — Tue Sep 30, 2025 4:32 pm — Replies 11 — Views 418