From: "DC" 
Newsgroups: misc.invest.financial-plan
Subject: keeping cash on hand for emergency
Date: Fri, 10 Dec 2004 03:59:24 CST
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	=t1Yr

Most financial advice says to keep some cash on hand for emergencies,
somewhere between 3-12 mos spending. My question is, can a bond ETF like AGG
be considered as "emergency cash"? It's definitely very liquid, and there's
no penalties for early withdrawal like CDs, only a very minimal commission
fee.

Performance-wise, it's pretty unlikely to lose value (unlike stocks). Even
worst case, it could probably only lose 5% in a year. If I remember
correctly, the Lehman Aggregate index has only been negative twice in the
last 20 years or so, and the worst was only -3%.

In my thinking, I'd rather have my emergency cash invested in a bond ETF
rather than sitting in a pitiful bank account. But I just want to check with
other people out there if I overlooked something.