Thanks, Brian,
The thumb drive would be for the LAST backup. The automated ones would be the rotating ones. I usually tell my clients to keep a backup for each day of the week, giving them a 5 (or 6 or 7) business day rotating backup to catch any problems. Monthly archives are good too as a back-stop
The encrypted thumb drive means not having to run an encryption program - which will give your thumb drive the same security without the extra step every day.
V.