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frugalfool

Erosion Of My Ftb Fund: Safety, Inflation Proofing, Etc.

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Hi All,

Long, long time lurker and studier of all things HPC.

I have an FTB fund of 155K, "divvied up" as follows:

25K mini cash ISA (5.2% net)

20K income tax relief savings (6.2% net)

45K Index linked savings certs (currently all paying around 4.2% net)

20K Gold bullion (physical)

25K limited w/drawal savings (5.5% gross)

20K instant access savings (5.15% gross)

50K Regular savings accounts (range from 5.65% to 10% gross)

This all adds up to 205K, however please note I have borrowed circa 50K from a few credit card companies. This all needs to be paid back in the new year, which I can do by emptying my 45K in instant and limited access savings, and by knowing that more than 5K will be released by maturing regular savers accounts between now and then.

Actually, 25K of the 50K in my regular savers will be released by the new year by maturing accounts, so with 5K committed to refunding credit cards...

What should I do with the remaining 20K I have spare to allocate shortly?

Physical / allocated PM? Wait for another index linked savings cert issue and in the mean time keep it as interest-earning cash savings? Diversify into a basket of interest-bearing foreign currencies (Euro, etc.)? Stock market (energy and miners, etc.)? Keep it as instant access and use it as a funds pool to pay into more regular savers accounts?

I'm interested in safety / inflation proofing. I know that's impossible with the current CPI "lies", but as you can see, I'm having a damn good go at trying to limit loses even though I'm basically all cash.

Plenty of respected financial-savvy people on this board with long histories of insightful postings. Leap in inflation predicted at least a year early, the gold rise predicted at least 2 years early, etc. etc...

Advice and opinions welcome.

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Woah. That's some deposit you have.

Maybe it's worth going to see a chartered financial advisor? If you're thinking about different investments, try Dr Bubbs site: www.greenenergyinvestors.com

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I'm interested in safety / inflation proofing. I know that's impossible with the current CPI "lies", but as you can see, I'm having a damn good go at trying to limit loses even though I'm basically all cash.

No current safe investment AFAIK will shield you from real inflation (10%+) - bung some of it in the lottery/premium bonds...

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Woah. That's some deposit you have.

Maybe it's worth going to see a chartered financial advisor?

Wouldn't I just get the same short-sighted claptrap every other badly informed economist trotts out these days? Hence the reason for posting here - this seems to be where the real knowledge is to be perfectly honest.

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Wouldn't I just get the same short-sighted claptrap every other badly informed economist trotts out these days? Hence the reason for posting here - this seems to be where the real knowledge is to be perfectly honest.

There is real opinion here and some of it might even be right.

But you are always best to see a professional financial adviser on these matters.

To be honest if you've gotten that sum together, youre a damn sight better off than most people and more financially savvy than you seem to be giving yourself credit for.

FWIW, I come to these sites to read different opinions but I always make up my own mind.

best of luck

Edited by needle

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How about puting 20K into Soybeans? they are a useful commodity the cost of producing them should keep pace with inflation etc etc.

soybean market looks dull dull dull its only 10-20% off its 10 year floor price. the price of beans seems to be normally quite dull but every few years the market goes into a panic for a few months and you can sell out for a nice profit. also speculators/funds are pretty short of them at the moment....

just a thought...

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I think you've got it bang on. Unless your a gambler (which is bad) keep it exactly as is. You even have a small allotment of gold as an inflation hedge.

It's odd but in a different time I'd be saying you should put 30K in property. But since 30K gets nothing but the worrying property funds don't bother.

I'd state two things to consider:

1) Add to your pension as a bulk sum. But only if you started your pension late and then only drip fed in over 6 years to the tune of 5K/yr.

2) A japanese index tracker. I've toyed with this myself but now feel the time to plunge in, is 2 years from now.

Well done on the savings though i'm guessing you was an early BTLer who's got out or got a good inheritance.

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