what to do if you have only cash?
xayide: Gold worries me these days.  It's gone up so much lately that I think it's overvalued.  Of course, I discouraged my husband from buying up gold when it was much cheaper a year ago for this same reason and he still hasn't forgiven me.  For a civilization collapsing catastrophe, I still think we're better off with the bags of rice and bottles of bourbon we hoarded instead.I'm not a fan of index funds.  At the risk of going against popular wisdom, I think it's better to put your money in a fund that is actually managed by a financial professional.  Index funds follow the general market hell or high water, and even though their fees are generally lower since it doesn't take any brains to manage one, you'll never maximize your returns (or these days minimize your losses) with one.  The key phrase to look for is 'no load mutual fund'.  These funds will generally minimize fees at the time of your deposit and withdrawl.  I've been happy with the Muhlenkamp Fund overall, of course they're in the gutter like everyone else at the moment.The thing to remember is that the price of both gold and funds will fluctuate, and in either case you wouldn't be able to get at your money right away.  I keep an HSBC high interest rate savings account for emergencies.  There's enough money in there to pay my insurance deductibles if I crash my car into my house and both burn down.  I contribute monthly to pay my semi-annual insurance premiums plus a little extra to give me that deductible buffer.  It's probably around 2 months living expenses, which is within my risk tolerance, but you might want to sock away at least 3 months worth before investing the rest.