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Location of Your Emergency/Comfort Fund

Location of Your Emergency/Comfort Fund

May 08, 2024

Majority of people do not have an emergency/comfort fund, but for those that do, the next thing to consider is where to place it.

That is a popular question so let’s dive in.

Your Safety Net…A.K.A your Emergency/Comfort Fund

Where should you keep it so that is accessible, safe, and not being eaten away by inflation?

Avoid keeping it in your typical checking or savings account because inflation eats it away or you may be more likely to spend it.

Options to consider:

  • High-yield savings accounts
  • Brokerage account
    • Not investing it, but using money market funds, as an example, to earn higher interest
  • Money market accounts at the bank
  • Credit union accounts

Depending on what you utilize will also factor in how you are taxed.

Remember the key is accessibility without risking the loss of your principal or reducing your purchasing power due to inflation. Evaluate your options based on fees, interest rates, account requirements, and convenience. Taking advantage of high interest-bearing accounts allows for more peace of mind.


Retirement Planning Solutions, LLC is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Retirement Planning Solutions, LLC by the SEC nor does it indicate that Retirement Planning Solutions, LLC has attained a particular level of skill or ability. This material prepared by Retirement Planning Solutions, LLC is for informational purposes only and is accurate as of the date it was prepared. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Advisory services are only offered to clients or prospective clients where Retirement Planning Solutions, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Retirement Planning Solutions, LLC unless a client service agreement is in place. This material is not intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Retirement Planning Solutions, LLC is not an accounting firm. Please consult with your tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.