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How To Define Your Investment Strategy

Strategy For An Emergency+Fund

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Hold your Emergency+Fund in investments in which you can access the cash immediately and that have no risk of losing principal. You don't want to have to cash in an investment at the moment when it is not a good time. Use bank accounts, short-term CDs (certificates of deposit) and money market accounts. (For some guidance on how large your Emergency+Fund should be see Emergency+Fund).

Don't put any money into other types of investments until you have what you consider to be an adequate emergency fund.


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