From: zxcvbob 
Newsgroups: misc.invest.financial-plan
Subject: Re: Emergency cash options...
Date: Fri, 28 Jul 2006 21:22:22 -0500
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	=BUMI

joetaxpayer wrote:
> When I last refinanced in April 04, to a 5.25% 15 year mortgage, 
> interest rates were low and I looked at my 'emergency money', the 
> classic 6 month's income, and I decided to emerge with little cash, but 
> a much lower mortgage payment, the result of the lower rate and lower 
> principal. Along with that I included an HELOC. The warning, of course, 
> is the HELOC is tied to the prime rate and would now cost far more than 
> two years ago, but I do believe the answer to your question is a 
> qualified 'yes'.
> There are those for whom the 6 month emergency fund simply isn't needed. 
> The well off person with a diversified portfolio who can just sell a bit 
> if they need quick cash, for instance.
> JOE
> 

I have a ladder of three 3-month T-bills; one rolls over every month, 
and I siphon the some interest off for beer and beef jerky etc. money 
;-)  I have more than enough signature credit available (credit cards) 
to float for a month while I wait for the next T-bill to mature.  I also 
buy a 6-month $1000 T-bill whenever I have a spare $1000 (that's where a 
lot of the accumulated interest goes.)

I'm sure I could get a little better rate, but this works for me, and 
it's simple.

Best regards,
Bob