Emergency Funds

Life is uncertain, that much we all know. A broken water heater, an unexpected medical bill - you just don't know when you might need extra cash. A good rule of thumb is to have three to six months' worth of living expenses saved for emergencies.

You may want to consider investing this money in a checking, savings or other liquid account, a short-term CD or a similar investment. Investments like these are more liquid, which makes them a potentially smart choice for unexpected, short-term needs. This also allows you to avoid dipping into your long-term investments at a moment's notice.

To see how an emergency fund can be incorporated into your current investments, contact your local financial advisor for a portfolio review.