if you think you’re covered there, option 5 would be a stock mutual fund / index fund…still very liquid if you need the cash, but has the possibility to rise more than a CD or T bill (but also has the possibility to fall).

but again, if you still think you will need access to that cash anytime soon, a stock fund is not a good short term place to park your money…they’re for long term investing.

so, its your call….but if in doubt, i would go with the T bills on treasury direct

seriously, if you’re ill and think you’ll need the cash in a relatively short period of time, DO NOT pay extra on either mortgage

It’s like stuffing that cash in the walls…you’ll never be able to access it. especially if you start working only part time…try getting a HELOC with a part time / no job…won’t happen.

I’m a safety nut, so i recommend the safe side.

you’ve got 4 options:

– under the matress (not recommended)
– high yield online savings account (good)
– CD (better)
– treasury bills (best)

personally, Im a Tbill fan, I would recommend a 3 or 6 month bill (or 1 month, depending on your situation)…remember, the rate is state-tax free, so the actual yeild is a little higher than you think

http://www.treasurydirect.gov

its really easy

anyway, just my 2 cents…remember, my wife thinks I’m a moron though… 😉