So how do I protect my savings?
Discussion
Hi, apologies if this has been covered elsewhere, but I couldn't find it.
My question is how do I make my life savings as safe as possible in case the brown stuff hits the fan? I am not worried about interest rates, only that, if the world banking system goes tits up, my life savings will be safe.
For example I have some money in NS&I premium bonds, these are sold as 100% safe as your money is government backed. Is this correct? ( I mean the 100% safe bit)
A while ago I was chatting to a financial consultant ( at a party, not professionally) who passed the comment that if we do go over the precipice the £85,000 guarantee the banks give out, won't be worth a jot when the first bank has a run and the Gov are not in a position to bail it out. Hopefully this isn't going to happen, but if it did and bank after bank start to topple when people start trying to get their money out, an awful lot of people stand to lose an awful lot of money.
Short of buying gold ingots and burying them in the garden, what is the safest bet for a natural born worrier like me?
My question is how do I make my life savings as safe as possible in case the brown stuff hits the fan? I am not worried about interest rates, only that, if the world banking system goes tits up, my life savings will be safe.
For example I have some money in NS&I premium bonds, these are sold as 100% safe as your money is government backed. Is this correct? ( I mean the 100% safe bit)
A while ago I was chatting to a financial consultant ( at a party, not professionally) who passed the comment that if we do go over the precipice the £85,000 guarantee the banks give out, won't be worth a jot when the first bank has a run and the Gov are not in a position to bail it out. Hopefully this isn't going to happen, but if it did and bank after bank start to topple when people start trying to get their money out, an awful lot of people stand to lose an awful lot of money.
Short of buying gold ingots and burying them in the garden, what is the safest bet for a natural born worrier like me?
Edited by rand hobart on Tuesday 2nd August 00:56
Classic cars but fezza's, Jags etc, good investments at the mo.
You will need a place to keep them though!
Start here:
http://www.pistonheads.com/sales/list.asp?s=&p...
And here but only if you have the time:
http://www.pistonheads.com/sales/3077013.htm
Don't restore the above Jag and keep it dry for 10 years, then see a possible return of over £100k
You will need a place to keep them though!
Start here:
http://www.pistonheads.com/sales/list.asp?s=&p...
And here but only if you have the time:
http://www.pistonheads.com/sales/3077013.htm
Don't restore the above Jag and keep it dry for 10 years, then see a possible return of over £100k
Edited by Bebee on Tuesday 2nd August 05:35
Buy gold but not contracts or whatever. I mean actual physical stuff and bury it in your front garden. Come the apocalypse, do you think rocking up to the bullion website's office with your piece of paper will get you the gold you own? They'll have taken it as their own and buggered off to a fortified building, ready to shoot anyone who comes within 100m of it.
Which reminds me, buy tins of food and weapons.
Which reminds me, buy tins of food and weapons.
In inflationary times you need to invest in things which you think will inflate. With inflation at 5% and interest rates very low, cash is often a bad place to be in terms of return. It should be secure though if put in the right places.
Inflation at 5% and base rate at 0.5% highlights the government's solution to this economic crisis. Namely, let the savers and pensioners pay for the problems while bankers and the financial services industry carry on helping themselves to everybody's money just as before.
- Personally I won't touch premium bonds because the average rate of return is now pitifully low. Probably only around 1-2%. As this link warns,
- Have a look at NS&I current "index-linked" issue. It's RPI plus 0.5% and tax free so well worth considering. Details on link,
- Shares in decent companies should inflate but there are never any guarantees about the actual share price. However, companies trade in the real world so any profits and dividends will always be in today's money.
Inflation at 5% and base rate at 0.5% highlights the government's solution to this economic crisis. Namely, let the savers and pensioners pay for the problems while bankers and the financial services industry carry on helping themselves to everybody's money just as before.
Anybody think gold still has some way to go? I have the same concerns as the O.P.
Something my cousin said to me the other week really hit home, that going out right now with a £20 in you wallet feels the same as it did going out 5 years ago with a £10 in your wallet. I think he's right, for me anyways.
Something my cousin said to me the other week really hit home, that going out right now with a £20 in you wallet feels the same as it did going out 5 years ago with a £10 in your wallet. I think he's right, for me anyways.
98elise said:
Gold if you think the currency will tank
If you don't think it will tank, then get a mortgage off set account. As long as you owe them more than your savings then they are protected.
Are you sure about that?If you don't think it will tank, then get a mortgage off set account. As long as you owe them more than your savings then they are protected.
If you have a £250k mortgage but £86,000 in the offset account, I'd assumed you are covered by FSCS for the £85k but you wose lose the £1k additional in the offset account as it is treated as savings.
Puggit said:
Split your money as much as you can - ISAs etc
Yes, the ISA "wrapper" is not to be missed, especially for shares IMO. If you're not familiar with share dealing then people like these may it all very simple,http://www.hl.co.uk/investment-services/isa
Chainguy said:
Something my cousin said to me the other week really hit home, that going out right now with a £20 in you wallet feels the same as it did going out 5 years ago with a £10 in your wallet. I think he's right, for me anyways.
At steady 10% inflation the value of money HALVES in about 7 years. It can feel tougher than that depending on the particular things you are buying.oyster said:
98elise said:
Gold if you think the currency will tank
If you don't think it will tank, then get a mortgage off set account. As long as you owe them more than your savings then they are protected.
Are you sure about that?If you don't think it will tank, then get a mortgage off set account. As long as you owe them more than your savings then they are protected.
If you have a £250k mortgage but £86,000 in the offset account, I'd assumed you are covered by FSCS for the £85k but you wose lose the £1k additional in the offset account as it is treated as savings.
Puggit said:
Split your money as much as you can - lots of eggs in lots of baskets. Gold, currency, shares, property, ISAs etc etc etc
But if it does all go over the edge as the OP asked, any currency or paper based investment will not be worth the erm, paper it's printed on.Tangible assests will be the only items "worth" anything and only then if it can be protected against looters and other scum when the rioting starts.
over_the_hill said:
oyster said:
98elise said:
Gold if you think the currency will tank
If you don't think it will tank, then get a mortgage off set account. As long as you owe them more than your savings then they are protected.
Are you sure about that?If you don't think it will tank, then get a mortgage off set account. As long as you owe them more than your savings then they are protected.
If you have a £250k mortgage but £86,000 in the offset account, I'd assumed you are covered by FSCS for the £85k but you wose lose the £1k additional in the offset account as it is treated as savings.
They told me that they would be counted as one account, ie I couldn't lose the savings and still owe the mortgage. If the savings were held with another bank then that could happen.
Ozzie Osmond said:
Chainguy said:
Something my cousin said to me the other week really hit home, that going out right now with a £20 in you wallet feels the same as it did going out 5 years ago with a £10 in your wallet. I think he's right, for me anyways.
At steady 10% inflation the value of money HALVES in about 7 years. It can feel tougher than that depending on the particular things you are buying.Gold it is then for the long term?
Chainguy said:
Something my cousin said to me the other week really hit home, that going out right now with a £20 in you wallet feels the same as it did going out 5 years ago with a £10 in your wallet. I think he's right, for me anyways.
Which in itself means nothing because it only takes into account part of the equation.F'rinstance, in terms of beer, your £20 will buy the same amount as 12s/6d (62.5p) would at the the time of decimalistion. But in those days, I was coining it in at £21 a week, and you could buy a decent house for £3-£4k.
You get my drift I presume?
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