EF in 3 Parts - US$, Precious Metals & Foreign $$

[princessleia]

I have been reading Jerry Robinsons 5 levels of Financial Freedom and he talks abt having a diversified liquid financial reserve (Emergency Fund) and dividing the reserves into 3 parts - US Dollars, precious metals and stable foreign currencies. I am beginning to think he has it really right and it protects you from the ravages of inflation. What do all of you Ymers think? Anybody doing it this way or have been doing it for a long time?

[achelois]

nah.

diversified investments. Ef in dollars

Designated ef is small--1000 dollars.

[Nazgul Girl]

We keep our true emergency fund in American dollars in a savings account. It varies from $5k to $15k, depending on what unexpected expenses we may have. Right now, it fluctuates a lot due to our ongoing legal issues with the nutbag ( see post "Court Day" ). We have some precious metals also, which can be quickly liquidated, but they aren't quite that convertible (within a day ), unless they're taken to a pawn shop or dealer. As far as foreign funds, if you need your cash quickly, what good would having your money in a foreign currency do for you ? I'm not quite following the reasoning on that.

[princessleia]

Sb mentioned in other threads that you can open a foreign-currency with US banks here (like Everbank), so I would assume that with a ATM card, you would be able to access it anytime.