"It will never happen to me." What if it should happen one day? Then, die lah. OK lor. Reader: Don't believe in emergency funds. Better to put money in bank preference shares or perpetuals. AK: Well, let's hope you never meet with an emergency which might force you to liquidate your investments at prices not of your own choosing. Reader: DBS preference share, at any price, still provides a return many times that of a FD. In a situation where the preference shares cannot maintain a payout, is the FD much safer? While it sounds logical, how often do people who actually set aside an emergency fund found it useful? Having an emergency fund in a FD is a big opportunity cost. AK: I think you could say that you don't have an emergency fund but to say that you don't believe in having an emergency fund boggles the mind......