beating inflation

Money, investing, mutuals etc

beating inflation

Postby planteria » Tue Jun 13, 2017 9:10 am

inflation is currently 2.9%.. Savings and Investments need to be making some ground to cover that and then provide a return.

http://www.bbc.co.uk/news/business-40259392

what are people here doing to try to ensure a real return? :think:

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Re: beating inflation

Postby pabenny » Tue Jun 13, 2017 9:58 am


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Re: beating inflation

Postby planteria » Tue Jun 13, 2017 10:32 am

that's one method.. if you win :problem:

but Savings/Investments?

Current Account Interest/Rewards, Regular Savers, Direct Equities, Investment Bonds?
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Re: beating inflation

Postby Thunderfog » Tue Jun 13, 2017 11:23 am

planteria wrote:that's one method.. if you win :problem:

but Savings/Investments?

Current Account Interest/Rewards, Regular Savers, Direct Equities, Investment Bonds?


imutual Cashback Investment Club.
[Secretary] imutual Cashback Investment Club (CIC)

I'm making a profit of -11.5%...

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Re: beating inflation

Postby expressman33 » Tue Jun 13, 2017 12:03 pm

I've got over 50% of my savings in a Prudential Prudence Bond which is on track this year to make over 7% , since I took the bond out in 2002 it has averaged about 5%

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Re: beating inflation

Postby pabenny » Tue Jun 13, 2017 2:54 pm

planteria wrote:Current Account Interest/Rewards, Regular Savers, Direct Equities, Investment Bonds?


The current account options are well known - Santander, TSB, Tesco
Ditto regular savers - HSBC, First Direct, M&S - all require a current account

Equities...
There are quite a few shares with above inflation yields. You could buy, say Royal Dutch Shell, yielding more than 6%. But you would need to dig a bit deeper to understand why the historic yield is up there.

Note dividend yields are generally expressed as historic dividend as a % of current share price. Why is that important? Mostly because any bad news is factored into the share price - eg expected lower profits and potential lower dividend. There may have been share repurchases, announcements of rights issues, etc.

With equities, your capital is not preserved. So, worst case, you lose it all. If you'd bought RBS in 2007, your shares would now be practically worthless. If instead, you'd bought Barclays, your shares would be worth about half what they were then.

And then there is the question of diversification (all investment theory says you should not hold shares in one company or sector, but should spread your risk across different companies and sectors).

Oh. And dealing costs - ie the charges to buy and sell shares.

Corporate bonds
Best avoided as rises in interest rates will reduce the capital value. And given current levels, interest rates are only moving in one direction.

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Re: beating inflation

Postby pabenny » Tue Jun 13, 2017 2:58 pm

expressman33 wrote:I've got over 50% of my savings in a Prudential Prudence Bond which is on track this year to make over 7% , since I took the bond out in 2002 it has averaged about 5%



Prudential wrote:This product is no longer available to new customers.
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Re: beating inflation

Postby planteria » Tue Jun 13, 2017 9:53 pm

where did that reply appear ??
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Re: beating inflation

Postby planteria » Tue Jun 13, 2017 10:09 pm

I have a TSB current account, along with a Lloyds account which pays some useful interest.

I have the HSBC and M&S regular savers, along with one with Nationwide.

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Re: beating inflation

Postby chrisking66 » Tue Jun 13, 2017 11:09 pm

i currently have the

3% from TSB on £1500 (£45 a year)
3% from tescos on 2 sets of £3000 (£182 a year)
£3 a month from halifax (£36 a year)

when i can fully fund it will open a nationwide for the 5% on 2500 (£127), IF its still around when i could fully fund it, *when the m&s ends*

until then doing the m&s saver 3 months in to it to get the 3% on £250 pay pcm with really aint worth anything is it *current accounts are much better than pay monthly savers* (£41 a year, tho as it tops up they card i guess i could count that in then its worth a bit more)

and the dailys here .55p when everything tracks more like .40p really tho (£146 a year)
and qmee *another survey site, tho pays more for the effort vs swagbucks, i found anyways YMMV* at about £10 a week for 3 weeks now, so if stays that if not will see over time (£520 a year) *so the best thing im doing for easy extra money, aint even with banks, imutual bets all but 6K in tescos that not everyone can get both accounts now, and qmee is set to beat all if i stays are the avg i have been getting*

and ofc besides those things, buy to cex phones, when EE and CPW are silly enough to do ones for £10.99 / 100% return, for cashback £5 or better on offer + phone at cex about £5-£8 each, more depending on who the credit is for as its combi-able *only 02, and way to much live chat but oh well* all to one sim then pay by mobile gambling well not really as betting a set amount on zero red and black in roulette again gambling is it lol *for a return of £38.60 of £50.40 on a £40 or 4 x £10 sims*
Last edited by chrisking66 on Wed Jun 14, 2017 10:47 am, edited 2 times in total.

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