What is the best way to transfer my Yahoo mail account email, email folders and contacts to Mac Mail?

A new version of Yahoo Mail has unexpectedly been dumped on long time users a few days ago, leaving many of us with functions that no longer work and are unstable. There was no announcement of a Beta or a possibility of retaining the old Yahoo Mail. It was like "Here it is, like it or not. We don't care."
My son said "Why don't you use another email client?". I thought of Mac Mail immediately. I have found a lot of instructions as to how to move my Yahoo mail components, and they sound pretty easy, but what I haven't found is what happens to my Inbox email, my archived email and my contacts. Do I have to move all those components to Mac Mail manually, and if so, will they now reside on my hard drive? Maybe I'm getting in over my head here. Some of the instructions say all I need is just my Full Name, Email address and Password. I guess I'm a cynic. It just sounds too good to be true. What happens to the stuff that was on Yahoo?
I have a couple of other reputable email accounts, but I would have to go through all my friends and businesses and inform them of the changed email addy.
Any help would be greatly appreciated.
ktaggart

I've never bothered w/Yahoo Mail latest upgrades or updates. 
You can switch back to the old version of Yahoo Mail by going into your Yahoo Preferences and/or check the top right hand corner of its website.

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