I'm a pretty cautious person (one might even say
risk averse), so I've thought a fair amount about how to provide for my family in case of accident or injury. While preparing firewood this year (as I do
each year), I dropped a large log on my left hand. For about two weeks, I wasn't able to type with my left hand. It made me think a little bit harder about providing for my family in the case of disability.
Disability insurance is much too expensive. My goal is to have disability savings worth at least 6 months living expenses. I could save that money in a
money market fund, but I know myself and that's too easy to spend. Wherever I put this savings should meet the following criteria. It must:
- be difficult to spend
- safe through inflation
- be easy to sell at any time
- predictably retain value
- have a low cost of ownership
CDs don't meet the second or third criteria. Stocks don't meet the fourth criteria over short time intervals. Corporate bonds don't seem to meet the second or fourth criteria. I'm morally opposed to
Treasury securities. Gold and silver have a fair amount of market volatility, so they might not meet the fourth criteria in the short term either. Precious metals don't seem inclined to the dramatic price swings of stocks though, so they seem a little bit better for what I have in mind.
My current inclination is to use the savings to buy
gold bullion from a reputable online dealer. If push comes to shove and I need the money to pay living expenses, I'd sell it piece meal on eBay. That's because the
eBay price is routinely
higher than the spot price.
So what do you think readers, is that a good way to go? Have I overlooked something important?
