beating inflation

Money, investing, mutuals etc
planteria
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Re: beating inflation

Post by planteria » Fri Sep 15, 2017 10:41 am

i'm glad you have found it to be useful Frank :thumbup:

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Re: beating inflation

Post by expressman33 » Sun Sep 17, 2017 11:04 pm


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Re: beating inflation

Post by expressman33 » Tue Apr 02, 2019 6:11 pm

Nationwide to withdraw its 5% Flex Regular Online Saver
Nationwide says it will be closing the account at the end of the business day on 5 April.
If you are an existing customer will be able to continue to save into the account until it reaches its maturity date.
https://www.moneywise.co.uk/news/2019-0 ... m_content=
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Re: beating inflation

Post by AAAlphaThunder » Wed Apr 03, 2019 9:10 am

expressman33 wrote:
Tue Apr 02, 2019 6:11 pm
Nationwide to withdraw its 5% Flex Regular Online Saver
Nationwide says it will be closing the account at the end of the business day on 5 April.
If you are an existing customer will be able to continue to save into the account until it reaches its maturity date.
https://www.moneywise.co.uk/news/2019-0 ... m_content=
Good whist it lasted.
[Secretary] imutual Cashback Investment Club

Boro Boy
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Re: beating inflation

Post by Boro Boy » Wed Apr 03, 2019 9:37 am

pabenny wrote:
Tue Jun 13, 2017 3:54 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.
You missed the effects of time... A very important factor!

Also these vehicles:
Unit Trusts
Insurance Linked Investment Bonds
Investment Trusts
Gilts
PIB's
Offshore Bonds
Derivatives
Pensions
Property
RIETs
Investment Linked ISAs
Etc...

No simple answers, no wonder people get confused and leave it in the bank/building society deposit - probably the worst place for long term money as in

over time that arrangement doesn't out perform inflation. In other words, it's spending power diminishes over time (that word time again - an important factor!)...
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planteria
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Re: beating inflation

Post by planteria » Wed Apr 03, 2019 10:52 am

i got into a new Flex Regular Online Saver last week.. fortunately. there is still time to get into one for anyone here that wants to and can take the time to set it up. it's a good account, so sorry to see it go. my further concern here would be that this leaves only HSBC(andM&S) as a provider paying 5%, so i wonder if they will follow Nationwide in scrapping the account, or at least lowering the rate.

good points from BoroBoy further to pabenny's.. ultimately, we need to Invest our money to give it a chance to beat inflation - excepting a relatively small number of Cash Savings accounts, such as mentioned in my previous paragraph.
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Re: beating inflation

Post by Sarah » Wed Apr 03, 2019 11:31 am

I have Santander Regular Esaver issue 6 paying 5% too however after renewal issue 7 will only be 3%. Still acceptable but not great!

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Re: beating inflation

Post by macliam » Wed Apr 03, 2019 11:55 am

Truth is, the various savings schemes are very limited - and the only way to gain an inflation-beating return is to risk your capital. Large investment schemes know this, so keep a far larger margin of any profit made - and any scheme that claims to pay above the pathetic norm needs to be looked at very closely. Risking capital by way of equities is better than being scammed by an unregulated "scheme", as many sorry tales support..... but risk is risk and loss is loss.

Getting a deal that edged inflation used to be easy, but the financial crisis saw a turnaround in the share of profit given to investors, the "easy money" (for the Banks) meant that they no longer needed to compete for funding and the instability of markets due to various issues (Brexit amongst them) has ensured that returns have not even come close to a return to the old ways. Personally, I have a cynical view that this is the way the "Big Boys" like it - drive up personal debt and swallow personal savings, because being in debt limits your options for complaint.....
Just because I'm paranoid, it doesn't mean they're not out to get me

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