Rampant inflation, what do i do?

Costabit

Rampant?
What do you know that I don’t ?
Having lived through the late 70s , you and I probably define rampant a bit differently.

sevenhills

Alistair31 said:

Rampant inflation? 

With £56,000 in a savings account earning very little interest, the OP could be losing £400/£500 every year.

WelshGlyndwr

The inflation of the 70s may not be far away.

Costabit

WelshGlyndwr said:

The inflation of the 70s may not be far away.

Am interested in this as I am in a similar position, holding cash in my portfolio along with some capped (at +3% ) income streams
What do you know that should make me nervous?

trickydicky14

WelshGlyndwr said:

The inflation of the 70s may not be far away.

But then again, It could be.
Don't panic Mr Mannering
If you remember that, you did live through the bad times of the 70's

Prism

WelshGlyndwr said:

The inflation of the 70s may not be far away.

Well the way of dealing with it in the 70s was cash and short term savings and bonds. However that only worked when the interest rates started to rise. Sounds like you are in the right place then.

HansOndabush

WelshGlyndwr said:

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

Gold. Gold has always been the hedge against currency debasement and inflation.

Prism

HansOndabush said:

WelshGlyndwr said:

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

Gold. Gold has always been the hedge against currency debasement and inflation.

Maybe to a degree but only against expected inflation and rising inflation. After that you can have high inflation for years and falling gold prices. Hard to know if it will work next time.

WelshGlyndwr

Prism said:

HansOndabush said:

WelshGlyndwr said:

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

Gold. Gold has always been the hedge against currency debasement and inflation.

Maybe to a degree but only against expected inflation and rising inflation. After that you can have high inflation for years and falling gold prices. Hard to know if it will work next time.

so having 60k in one year bonds and cash isas is a waste and i should be spending it.

Prism

WelshGlyndwr said:

Prism said:

HansOndabush said:

WelshGlyndwr said:

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

Gold. Gold has always been the hedge against currency debasement and inflation.

Maybe to a degree but only against expected inflation and rising inflation. After that you can have high inflation for years and falling gold prices. Hard to know if it will work next time.

so having 60k in one year bonds and cash isas is a waste and i should be spending it.

Thats your call. Having the savings is the important thing - the return you might get on them is secondary. I have more than 60k in cash and one year bonds without worry, for times like last year when I had little income. My situation is likely different than yours.