Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

What percent of your portfolio should be in a money market account?
I would disagree with your analysis.  To me there are two purposes for a money market (MM): Your emergency fund should be from 3 to 6 months of expenses.  Think of it of an insurance policy against Murphy.  You may want to have some money designated for big expenses, or even sinking funds.  For example, I keep some money in a MM for a car as both the wife, daughter, and I driver older vehicles.  I may need to replace them. If you were planning on making a larger purchase car, house, boat, engagement ring I would put the money in a MM fund so you are not subject to the whims of the market.   After that you are free to invest all your money.  Its likely that you should have some money outside of tax advantaged funds so if you want to start a business you will not have to do high cost withdrawals.