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title: Emergency Funds & Two Short-Term Uses description: [AFW S.2.21] Investment Principle #21 published: true date: 2026-06-30T08:10:23.406Z tags: editor: markdown dateCreated: 2021-08-31T05:24:34.448Z

Watch AF MKOM 1685 - Emergency Funds & Two Short-Term Uses VIDEO

Watch Emergency Funds & Two Short-Term Uses VIDEO


Three Purposes

  1. Emergency fund.
  2. Short-term goals, such as a "fun fund".
  3. Holding tank while deciding what to do with the money. but client must be willing to wait at least one year.


Recommended Fund

Consider using the American Funds Tax-Aware Conservative Growth and Income Portfolio (TAIAX) for emergency funds and short-term goals.

With exposure to a diverse mix of stocks from dividend-paying companies and tax-exempt, fixed-income securities, seeks to help investors pursue current income, a portion of which is exempt from regular federal income tax, and long-term growth potential.

  • Inception: 2012
  • Issuers: 2,154
  • Assets: $5.9B
  • ROR since inception to 2025-Oct: 7.54%
  • A-share expense ratio: 0.64%
  • C-share expense ratio: 1.36%
  • C-shares have a one-year CDSC of 1%, but this is only applicable to the principle. The dividends, capital gains, and share-growth are not subject to CDSC.


1-Year Rolling Periods Since 2012 (C-Share)