Frank Hovis Posted February 26, 2011 Share Posted February 26, 2011 I usually invest long term but am in the position of accumulating cash at the moment and want somewhere to put it for two years. Ideal would be NS&I RPI tax free but they're still not available. I want to be able to take it out in two years without having lost anything. Various sources inclduing maturities: £30k now, another £40 or £50k at the end of the year, another £50k or £60k next year so that's well over £100k with nowhere great that I can see to put it. At the moment I can't see anything really appealing over sticking it into a cash bond and paying the tax but I know I'm losing money there because of inflation. Anybody have any better ideas? It won't be a house (that's what the two year horizon is) or gold. Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted February 26, 2011 Share Posted February 26, 2011 I usually invest long term but am in the position of accumulating cash at the moment and want somewhere to put it for two years. Ideal would be NS&I RPI tax free but they're still not available. I want to be able to take it out in two years without having lost anything. Various sources inclduing maturities: £30k now, another £40 or £50k at the end of the year, another £50k or £60k next year so that's well over £100k with nowhere great that I can see to put it. At the moment I can't see anything really appealing over sticking it into a cash bond and paying the tax but I know I'm losing money there because of inflation. Anybody have any better ideas? It won't be a house (that's what the two year horizon is) or gold. Stock market. In the event of printy printy you'll do ok. If it falls, it's likely that house prices will plummet. Easy and cheap to buy into a tracker as well. Quote Link to comment Share on other sites More sharing options...
Guest_ringledman_* Posted February 26, 2011 Share Posted February 26, 2011 Everyone with lots of cash seems to hate gold but if it was me I would put 5% in precious metals as an insurance policy. It just seems natural to me to have 5-10% of ones wealth in precious metals as a hedge, insurance, uncorrelated asset (to an extent). Not there to make you money but help you not lose too much in a future crash, devaluation, negative rates, deflation (for balancing ones stocks). May be worth looking at a 2 year fixed bond. Get around 3.6% and accept that inflation will most likely erode the value to an extent. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted February 26, 2011 Share Posted February 26, 2011 Everyone with lots of cash seems to hate gold but if it was me I would put 5% in precious metals as an insurance policy. It just seems natural to me to have 5-10% of ones wealth in precious metals as a hedge, insurance, uncorrelated asset (to an extent). Not there to make you money but help you not lose too much in a future crash, devaluation, negative rates, deflation (for balancing ones stocks). May be worth looking at a 2 year fixed bond. Get around 3.6% and accept that inflation will most likely erode the value to an extent. Have you got a graph of the DOW/FTSE/gold price since March 2009? It seems like everything is in the same bubble due to QE. Do you think that if the stock markets fall gold won't? Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted February 26, 2011 Author Share Posted February 26, 2011 Looking like some cash bonds then. I agree with stock market long term but I can see it might dip significantly within the next two years. Thanks for the input. Quote Link to comment Share on other sites More sharing options...
Take Me Back To London! Posted February 26, 2011 Share Posted February 26, 2011 (edited) Have you got a graph of the DOW/FTSE/gold price since March 2009? It seems like everything is in the same bubble due to QE. Do you think that if the stock markets fall gold won't? Will money pile out of the stock market into the safe haven of the US dollar, like in 2008, I think not. Gold is now the world's reserve currency again. Edited February 26, 2011 by Take Me Back To London! Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted February 27, 2011 Share Posted February 27, 2011 Will money pile out of the stock market into the safe haven of the US dollar, like in 2008, I think not. Gold is now the world's reserve currency again. Have you got the chart I asked for? DOW/FTSE/Gold since March 2009 Quote Link to comment Share on other sites More sharing options...
Guest_ringledman_* Posted February 27, 2011 Share Posted February 27, 2011 Have you got a graph of the DOW/FTSE/gold price since March 2009? It seems like everything is in the same bubble due to QE. Do you think that if the stock markets fall gold won't? I'm not sure what a Dow/FTSE/gold graph is??? As a long term investor the benefits of an allocation to gold is clear, the last 10 years has shown what an excellent uncorrelation it has with stocks. Gold will probably bottom around 1-2 times on the dow then it will be a sell. Quote Link to comment Share on other sites More sharing options...
Lagarde's Drift Posted February 28, 2011 Share Posted February 28, 2011 (edited) I usually invest long term but am in the position of accumulating cash at the moment and want somewhere to put it for two years. Ideal would be NS&I RPI tax free but they're still not available. I want to be able to take it out in two years without having lost anything. Various sources inclduing maturities: £30k now, another £40 or £50k at the end of the year, another £50k or £60k next year so that's well over £100k with nowhere great that I can see to put it. At the moment I can't see anything really appealing over sticking it into a cash bond and paying the tax but I know I'm losing money there because of inflation. Anybody have any better ideas? It won't be a house (that's what the two year horizon is) or gold. You could put it in RBOS index-linked bonds instead of NS&I ones..... Depends on whether you are an inflationista or deflationista, or if you want to hedge a ratio of both. Commodity shares are really well geared so a fund holding a mixed spread of commodity stocks would be good. Some funds are thieving bastards though. My Merril Lynch Gold & General (as much touted in the MSM and Moneyweek) has only gone up by 20-25% in the last couple of years, whilst my other PM type holdings and funds have done anywhere between 40-80%. ETF charges are cheap but don't return anywhere close to what they should for various reasons. Have you thought about a SIPP? Excellent tax relief, and most products can be wrapped with it. Oh, if you ask on the Gold forum they will say have 5-20% of your total wealth in physical. I make it a point to have 10% in physical, it is easy to row and trek to Switzerland with it if all else fails. Edit: I wrote all of that without reading your last two words! Er, inflation, er, commodities, er, gear it with commodity companies - money money money. Edited February 28, 2011 by Cash with Nowhere to Go Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted February 28, 2011 Share Posted February 28, 2011 Here's the Dow versus Gold since March 2009: Thanks for that. The two look correlated to me in that timescale. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted February 28, 2011 Share Posted February 28, 2011 Thanks for that. The two look correlated to me in that timescale. Um, pretty weakly. But it seems to show shares firmly beating gold, and we didn't even have to count in the dividends! Both assets appear to be rising because the measure (paper money) is losing value. Quote Link to comment Share on other sites More sharing options...
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