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Worried about inflation killing my savings
the_commander
Posts: 77 Forumite
Hey all, I have built up some reasonable savings and am worried that inflation will kill them if inflation increases soon.
I have looked at Gold but it already seems pretty expensive.
Anyone got any suggestions?
Cheers
I have looked at Gold but it already seems pretty expensive.
Anyone got any suggestions?
Cheers
0
Comments
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inflation is unlikely to rise for a couple of years - in fact deflation is more likely. Why not inflation protected savings by NS&I if you are worried0
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If you're not saving for a specific purpose, why don't you spend some on making your life more comfortable? Garden redesigned for ease, an unplanned holiday, buying something you always wanted but would never allow yourself to purchase?
If your life is VERY comfortable with lots of savings, what about a charity donation to a local one? Enjoy your money and know that your problem is one a lot of people would like to have." The greatest wealth is to live content with little."
Plato0 -
lilac_lady wrote: »If you're not saving for a specific purpose, why don't you spend some on making your life more comfortable? Garden redesigned for ease, an unplanned holiday, buying something you always wanted but would never allow yourself to purchase?
If your life is VERY comfortable with lots of savings, what about a charity donation to a local one? Enjoy your money and know that your problem is one a lot of people would like to have.
Are you serious?? I'm glad you're not a financial adviser!!0 -
:rotfl:Am not overly keen on gold here myself, as I think it has gotten ahead of itself. If you are just looking for inflation protection then as gozomark has suggested there are inflation protected savings available from NS&I, ans the Leeds BS used to do something similar, another option would be Index linked Gilts may well be worth a look as inflation is not a major fear currently, so they may be reasonably priced, not sure, someone familiar may comment on this. I have taken a position in the US equivalent known as TIPS.the_commander wrote: »Are you serious?? I'm glad you're not a financial adviser!!Hope for the best.....Plan for the worst!
"Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown0 -
lilac_lady wrote: »If you're not saving for a specific purpose, why don't you spend some on making your life more comfortable? Garden redesigned for ease, an unplanned holiday, buying something you always wanted but would never allow yourself to purchase?
If your life is VERY comfortable with lots of savings, what about a charity donation to a local one? Enjoy your money and know that your problem is one a lot of people would like to have.
A government adviser if ever I heard one
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Lol, Thanks guys, I am worried about the inflation to come in a couple of years. The banks interest rate is so abysmal that it may not keep track with inflation. I will check out the recommended cheers.
I may also take a toke of Lilac_lady's pipe!0 -
My own personal view is that inflation will be a very real concern about 2 yrs out, so looking into the best means of protection now would be prudent, as if you do it via the market, the markets will start to anticipate it at any signs of a recovery or even stabilization of the current crisis.the_commander wrote: »Lol, Thanks guys, I am worried about the inflation to come in a couple of years.Hope for the best.....Plan for the worst!
"Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown0 -
You need a good mix across a range of assets - equities, cash, oil, bonds, commodities etc. Interest rates are so low & stocks so cheap, its time to diversify. Especially if you dont have a set period to invest and the money is merely 'savings'.Living the good life spending all my money but loving it!!0
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Can you recommend any good reading to understand how to invest in oil/bonds/commodities?0
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If you like precious metals, silver is relatively cheap compared to gold right now if you consider factors such as the gold:silver ratio. It's been around the 75-80 lately whereas it was around 50 when silver was trading around $20.
If you're looking to buy physical it might not be a great deal though since you have to pay VAT and the premiums over spot are particularly high right now. You can buy close to spot with an ETF such as PHAG.
http://www.etfsecurities.com/msl/etfs_physical_silver.asp
Silver is much more volatile than gold though. If you have a lump sump then consider phasing the money in over 12-24 months.
Diversified funds holding commodity futures are also worth looking at. In the long run you can expect returns similar to stocks from the futures markets. And they're positively correlated with inflation.
Some options:
http://www.etfsecurities.com/csl/fwd/etfs_all_commodities_f3.asp
http://www.h-l.co.uk/funds/security_details/sedol/B195JD8
Be aware that these are long-term investmensts (min 5 years).0
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