Rampant inflation, what do i do?

WelshGlyndwr

My partner and i have 56k in savings. In a range of easy access and one year bonds. We don't plan to spend this any time soon. What shall we do about inflation?  Should we look to spend or invest it? or use it to put down on the mortgage?

nyermen

I'd be curious to hear as well.  No where near that amount, but I do have something to put aside each month.  right now I'm throwing it all at the mortgage, and will continue to do so until I find something with a better rate than the mortgage.
I already have some aside (a years mortgage payments) in case of job change/loss etc.

Albermarle

WelshGlyndwr said:

My partner and i have 56k in savings. In a range of easy access and one year bonds. We don't plan to spend this any time soon. What shall we do about inflation?  Should we look to spend or invest it? or use it to put down on the mortgage?

To get a sensible answer you need to provide more info;
Age ? employed? pension provision? size of mortgage and interest rate etc etc
Also you could read through the forum as similar questions get asked every day  .

WelshGlyndwr

Albermarle said:

WelshGlyndwr said:

My partner and i have 56k in savings. In a range of easy access and one year bonds. We don't plan to spend this any time soon. What shall we do about inflation?  Should we look to spend or invest it? or use it to put down on the mortgage?

To get a sensible answer you need to provide more info;
Age ? employed? pension provision? size of mortgage and interest rate etc etc
Also you could read through the forum as similar questions get asked every day  .

28, employed on 36k salary, DB pension contribute 5.5%. Fixed rate mortgage with 3 years left at 2.34%. 175k still to pay mortgage. Already overpaying by £400 a month

Alexland

nyermen said:

right now I'm throwing it all at the mortgage, and will continue to do so until I find something with a better rate than the mortgage.

We used to do that as you say until we found something with significantly better long term return prospects than the mortgage by making sensible S&S investments using tax efficient wrappers.

eskbanker

WelshGlyndwr said:

Rampant inflation....

I think most would categorise sustained sub-1% inflation as barely discernible rather than rampant....

Alistair31

Rampant inflation? 

WelshGlyndwr

inflation may become rampant soon. How do i shield my savings against it?

justworriedabit

WelshGlyndwr said:

inflation may become rampant soon. How do i shield my savings against it?

Morning
It could well do and if anyone can grantee it can't, then IMO the can time travel.
Nothing is guaranteed, other than the obvious. 
If you feel like that, then do not put you money into anything fixed, therefore when it becomes "rampant," you can move to another platform, then another until you fell it is time to fix for 12/18 months or whatever for a better return.

Croeso69

WelshGlyndwr said:

inflation may become rampant soon. How do i shield my savings against it?

Not totally convinced about that. However the best rate currently available are premium bonds and you can put up to £50k per person into those

steampowered

The obvious hedge against inflation is to invest in assets.

Sensible, diversified stocks & shares investments through a stocks & shares ISA is the easiest way of doing this. 

Keeping large amounts of money in savings accounts or premium bonds for a long period of time is madness. Due to the fact that (1) inflation eats away at savings over time and (2) investing over a long time period reduces the risk, savings accounts pose a higher risk to capital than investments when you start looking at longer time periods.