QUESTION:  How much
should I keep in liquid accounts for an emergency fund?

ANSWER:  Financial
advisors use the following rule of thumb:  for 2 wage earner families,
keep 3 months of living expenses in liquid accounts as an emergency fund. 
For one wage earner families, or retirees, keep 6 months in such
accounts.  Emergency funds are used for those UNPLANNED expenditures that
pop up from time to time.  LIQUID accounts are cash, checking &
savings accounts and other investment accounts which can be converted to cash
quickly- within 21 days- and easily with very little loss of value.  Why
within 21 days?  If an emergency arises, consumers can use a credit card
to satisfy immediate cash needs, and then liquidate emergency funds within 21
days to pay off the credit card before interest accrues.

NOTE: 
Financial planning advice such as the above is general in nature and cannot be
used for all situations.  Before applying this to your own unique
circumstances, we recommend contacting your financial advisor to double-check
how to apply the information to your situation.