losing the value of cash savings
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lluzers
Posts: 133 Forumite
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.
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.
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Pensioners have been screwed by governments for last 45 years
I strongly object to this insinuation.
It shouldn't be the job of government to act as an investment bank. It certainly shouldn't be the job of government to subsidise people's savings.
People are perfectly capable of making their own investments.0 -
I think people are quite aware that their money is losing value as you could buy a bag of chips or make a phone call for 4d in the 1950s/60s and in the 1920,my mum told me she used to buy a 'poke bag' (about 4oz) of sweets for a farthing (quarter of an old penny) and a large loaf of bread for 1d.
Houses are much dearer now, but not as dear when you consider that incomes were much much lower in the 1970s. I earned about £100 a week as a teacher and this was huge compared to the £12 I earned as an unqualified teacher three years previously.
Is your post meant to make people miserable or to imply that you know of better ways of dealing with money ?0 -
steampowered wrote: »I strongly object to this insinuation.
It shouldn't be the job of government to act as an investment bank. It certainly shouldn't be the job of government to subsidise people's savings.
People are perfectly capable of making their own investments.
Governments control interest rates , they borrow from savers , cash savers like pensioners have their money in cash.If savers really have a level playing field and controlled the interest rates , I would agree in a free market.
The governments use borrowings to pay off past debts , with new debts , the past debts at today's buying power of the cash borrowed, is another tax on cash savers.0 -
Houses are much dearer now, but not as dear when you consider that incomes were much much lower in the 1970s. I earned about £100 a week as a teacher and this was huge compared to the £12 I earned as an unqualified teacher three years previously.0 -
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aroominyork wrote: »Conclusion: a prime sector to invest in is companies specialising in equity release.
But this sector makes money by screwing the pensioners with property , leaving their homes in the hands of these sector.0 -
lluzers, are you a pensioner with cash savings which are reducing due to inflation?
This site and the wise people on here can give you some excellent pointers if so.Save 12 k in 2018 challenge member #79
Target 2018: 24k Jan 2018- £560 April £26700
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