During a meeting with your clients, Janet and William, you discuss the subject of emergency funds. You suggest that they maintain four months of living expenses. Based on the CFP Board curriculum, which of the following securities are most appropriate for emergency fund reserves?
(1) Checking and savings accounts
(2) Certificates of deposit
(3) Individual bonds or open-end equity fund
(4) Stock portfolio
(5) Individual municipal bond (10 year maturity)
(6) Home equity line of credit
(7) Borrowing from cash surrender value of permanent life policy