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  • FIRST POST
    • lluzers
    • By lluzers 9th Oct 17, 3:45 PM
    • 116Posts
    • 13Thanks
    lluzers
    losing the value of cash savings
    • #1
    • 9th Oct 17, 3:45 PM
    losing the value of cash savings 9th Oct 17 at 3:45 PM
    Most people here suffer from the "Dunning Kruger effect"

    The people putting their monies in cash , think they are smart and earning a profit , they don't know that their 0.5 % interest income has been losing buying power for the last 45 years .45 years ago the printing presses for money printing started , same home you bought for £15,000 in 1972 , you will pay £1m for it .The buying power of your money is going down.

    Pensioners have been screwed by governments for last 45 years , nowadays they borrow from pensioners via gilts at 0.25 %???.The buying power of your cash will keep going down.

    £100k invested in cash today will be worth £15k buying power in 20 years.
    Last edited by lluzers; 09-10-2017 at 4:21 PM.
Page 2
    • lluzers
    • By lluzers 9th Oct 17, 7:49 PM
    • 116 Posts
    • 13 Thanks
    lluzers

    You seem to be ignoring all the posts about investments not cash savings. It is after all the Savings AND Investment forum.
    Originally posted by jimjames
    Why should anyone take advice on investments which could be duds , if they turned out to be duds , when he is trying to keep hold of what he has.
    • atush
    • By atush 10th Oct 17, 12:21 PM
    • 16,381 Posts
    • 10,136 Thanks
    atush
    cash savers like pensioners have their money in cash.
    Well there is no reason that pensioner cant invest- and I plan on being one of them who does so. I have a lot of cash, but I have more in investments. Most being collective investments and not single shares.

    If you choose to keep all your money in cash, that is your problem.

    Or you could move to a country that pays higher interest on your cash.
    Last edited by atush; 11-10-2017 at 11:05 AM.
    • Malthusian
    • By Malthusian 10th Oct 17, 3:20 PM
    • 3,449 Posts
    • 5,281 Thanks
    Malthusian
    Why should anyone take advice on investments which could be duds , if they turned out to be duds , when he is trying to keep hold of what he has.
    Originally posted by lluzers
    Because they might learn something and gain access to the knowledge they need to invest their money sensibly to deliver long term capital growth. And wouldn't have to spend their life watching their pile of cash dwindle in value, while shouting at the bins on an Internet forum.
    • Eco Miser
    • By Eco Miser 10th Oct 17, 4:34 PM
    • 3,224 Posts
    • 2,989 Thanks
    Eco Miser
    The people putting their monies in cash , think they are smart and earning a profit , they don't know that their 0.5 % interest income
    Originally posted by lluzers
    ½%? I've been getting 5%.
    has been losing buying power for the last 45 years .45 years ago the printing presses for money printing started , same home you bought for £15,000 in 1972 , you will pay £1m for it .The buying power of your money is going down.
    Originally posted by lluzers
    Why 45 years? My parents bought their first house for £800 (they couldn't afford a thousand) in 1951.
    Pensioners have been screwed by governments for last 45 years , nowadays they borrow from pensioners via gilts at 0.25 %???.
    Originally posted by lluzers
    Only if the pensioners buy gilts. I don't.
    The buying power of your cash will keep going down.
    Originally posted by lluzers
    So don't keep lots of cash.
    £100k invested in cash today will be worth £15k buying power in 20 years.
    Originally posted by lluzers
    So invest instead.
    Eco Miser
    Saving money for well over half a century
    • lluzers
    • By lluzers 10th Oct 17, 5:22 PM
    • 116 Posts
    • 13 Thanks
    lluzers
    ½%? I've been getting 5%.
    .
    Originally posted by Eco Miser
    How where what investments?
    • Eco Miser
    • By Eco Miser 10th Oct 17, 5:35 PM
    • 3,224 Posts
    • 2,989 Thanks
    Eco Miser
    The 5% in current accounts and regular savers (used to be 10% not so long ago).
    My actual investments have been getting rather more.
    Eco Miser
    Saving money for well over half a century
    • moneyfoolish
    • By moneyfoolish 10th Oct 17, 6:27 PM
    • 453 Posts
    • 262 Thanks
    moneyfoolish
    As a matter of interest, I'd be interested to know which people on here over 70 invest in equities and bonds and which people use only interest bearing savings accounts or ISAs and their rationale for doing each?
    • Eco Miser
    • By Eco Miser 10th Oct 17, 6:49 PM
    • 3,224 Posts
    • 2,989 Thanks
    Eco Miser
    I'm not 70 yet, but I don't expect to be changing my investment strategy between now and then, nor probably for the following 20 years that will take me to my fathers age at death.
    Why? You can't get inflation beating interest on hundreds of thousands of pounds.
    Eco Miser
    Saving money for well over half a century
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