Cash reserves for ?

I realize that funds are 'long' term holdings, but the can be converted to cash if sh*t happens.  I use cash reserves to manage a cash flow problem, not a safety net just in case something happens.

okay, I had an employment situation last summer and had to shed some funds to manage a cash flow problem, I took the paper loss to help my end of yr gains that would be coming in dec.  so, if I wasn't so invested in the market I wouldn't have had to sell some funds.   Then net effect was to reduce the gains at the end of the yr.

So, since I'm treating the mmf as cash flow management, the emergency is the balance of my taxable portfolio.  I still managed to keep way ahead of the mmf returns for money that most likely would not be utilized.  I then argue that having 10-20% in emergency, not counting cash flow in this, results in lowering your annual returns by 3-7% for your entire portfolio.

my $0.02 + interest