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How To Protect From Inflation

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Hi a friend has £175K in savings and is at a loss as to what to do with it to protect it from inflation.

My gut feel is he should invest it in a house as its a real thing and he will always get a rent. (as long as its let out.)

Others suggest shares but I can't help feeling we are in for a crash.

If he leaves it put ( in high interest account I'm guessing ~2% ) then inflation is going to erode it.

Anyone got any suggestions?

Thanks,

TP

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Hi a friend has £175K in savings and is at a loss as to what to do with it to protect it from inflation.

My gut feel is he should invest it in a house as its a real thing and he will always get a rent. (as long as its let out.)

Others suggest shares but I can't help feeling we are in for a crash.

If he leaves it put ( in high interest account I'm guessing ~2% ) then inflation is going to erode it.

Anyone got any suggestions?

Thanks,

TP

whereas you don't think houses will crash too....

trolling are we?

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I don't think anyone really knows the answer. Some will say buy physical precious metals, others will say invest in bricks and mortar or shares. The rules are constantly changing. Pay off any debt is good advice and then diversify into cash (maybe USD), PMs, shares. Buy some tinned food and a baseball bat!

Do a search, this has been discussed many times before.

Edited by GloomMonger

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85k in santander 2.75% instant access savings account (or whatever the compensation limit is), 10k in gold and 5k in shares. I tried foreign currency and the rates my bank gave were poor to say the least. Is it wise to buy property before an inevitable rate rise?

Edited by scrappycocco

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85k in santander 2.75% instant access savings account (or whatever the compensation limit is), 10k in gold and 5k in shares. I tried foreign currency and the rates my bank gave were poor to say the least. Is it wise to buy property before an inevitable rate rise?

If your friend is goings for some PMs as a hedge against currency debasement (not a bad move, IMHO) then he should balance it with investments that are cheap now and would do well if the inflation tsunami doens't come (though I think it will) - some retail is cheap at present.

The thing about protecting and hedging is that, of course, it's different from speculating - a balanced basket where he will lose on some if others gain and vv. is the way forward in my opinion.

Good luck to him - it's a difficult job at present :)

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Hi a friend has £175K in savings and is at a loss as to what to do with it to protect it from inflation.

My gut feel is he should invest it in a house as its a real thing and he will always get a rent. (as long as its let out.)

Others suggest shares but I can't help feeling we are in for a crash.

If he leaves it put ( in high interest account I'm guessing ~2% ) then inflation is going to erode it.

Anyone got any suggestions?

Thanks,

TP

invest it in a house? Hello....have you really been on this site over 4 years?

Quick reminder of what could go wrong - voids, tenant not paying/trashing place, expensive maintenance. house prices dropping therefore eroding value of his capital, new tax laws taxing BTL

Advice is always to spread risk - hence look at a wide range of asset classes and spread risk.

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Hi It's started,

You are talking about a lot of money there and i would suggest the last thing you do is take advice from an internet chat room !

Unless you friend has a background in investment then it will be worth the sum paid to talk to an independent financial advisor.

Every investment carries an amount of risk, and your friend needs to consider many options.

There is no other answer, look for a good FA in your area.

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When I first read this thread it seemed like the investment was a 100k, either I'm losing my fricking mind or inflation is everywhere.

Well anyway I'm playing it safe regardless of inflation, waiting for house prices falls and keeping speculative stuff to a minimal.

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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