to think savings will be worthless?

[HopelessLayout]

So governments are printing money hand over fist to cover all the Covid bailouts. Isn't this going to cause hyperinflation when it is all over?
I have modest savings put away for my retirement in a few years' time, but perhaps I should just blow the lot now.

Please tell me if I am misunderstanding the situation.

Another fearmongering thread just for a change

I don’t know much about investing but have a stocks and shares ISA with Aviva called Wealthify. I’d had it about a year and it was running at about 7% before COVID. It allows you to transfer your investments into cash temporarily which I did at the beginning of March, when it was obvious what was going to happen to the stock market. I transferred the cash back to stocks and shares last week when I thought it was safe to do so.
You can choose your level of risk.
Worth a look.

Forgot to say you can see what’s happening with your investment as the app is updated daily.

@Washyourhandsyoufilthyanimal what a horrible, pointless comment. OP is worried about her retirement funds - it's not scaremongering - not everything is all about you! If you're knowledgable about finance and have an optimistic outlook why not say something reassuring.

We're living in strange times and people are worried about all kinds of things. It's not scaremongering to discuss completely legitimate concerns.

If there is going to be inflation (like the 3 years at 20% - 60% overall) I remember in the 1970s best to get a job as there would be likely to be some wage inflation too and big mortgage might feel smaller over time as well.

Interesting thread. I have money in ISAs which is failing dismally. I would like to invest in gold or silver. How do I start?

I got a letter the other day saying my savings account interest was going down from 0.75% to 0.25%

RosesandIris here is a recent article that gives you a good overview. You can actually take possession of gold in various forms and stick it in a safety deposit box or buy shares in gold.

www.thebalance.com/should-you-buy-gold-3140477

The usual suggestion from experts is to have minimum 3,6,12 months equivalent emergency savings

Plus some provision for old age & retirement

Plus no debt

It's no fun with no employment and benefits are minimal

So I'm all for savings, even with low interest rates, they should increase over time

Buying & selling gold is not tax free

But I believe that gold coins are tax free

Do your research

I would like to invest in gold or silver. How do I start

Silver, about an 11 on a risk score 1-10
Gold, not much better for the average retail client.

Unless you know what you’re doing and when it’s a volatile and expensive way to lose money. The prices move FAR FAR more than the stock market.

Op if you actually want useful financial advice from strangers on the internet this probably isn't the place. You should probably state your savings value, your private pension value, your salary, your time to retirement, your desired income in retirement etc. Something like Reddit uk personal finance forum would give you more systematic advice if you made a detailed post.

I defo wouldnt buy crypto currencies.

I also have savings and I expect interest rates will drop like a stone. The best thing is to try to diversify if you can so maybe buy some shares. If the index is low now it could be a good time buy? But make sure you do some research before you leap in.

One area I would definitely invest in is your health. "Health = Wealth" if you need to throw money at a procedure or similar to improve your physical and mental health and you would see long term benefits I would consider that an excellent investment. Also grow and strengthen your community relationships and networks so you can enjoy life and have people to turn to in times of need. Of course, within reason and do your research to find the most affordable options. Taking care of dental work for example. Gum disease can actually lead to heart disease and inflammation generally. What's the point in having money that you can't enjoy because you neglected your health. Lose weight and exercise daily, both of which are excellent investments in your health.

Avoid debt (unless affordable mortgage debt) and get rid of any high interest debt asap.
Don't "invest" in grown children. As much as you may love your children never destabilize your own financial health to bail out a younger relative. They have decades to recover and you do not. Also the best gift you can give your children is a financially secure parent that they don't need to worry about.

Zilla1 Thanks. Only because I don't know what premium bonds are, exactly, but a few people recommended them so I thought I'd look into it. I'm making myself a list.

Floatyboat agreed. The bottom line is never invest in anything you don't understand and especially you must know and understand the risk you are taking on. So educate yourself and take financial responsibility for your future.

Martin Lewis doesn’t seem to think much of premium bonds.

Here’s the link to Wealthify

www.aviva.co.uk/investments/investment-products/wealthify/

"So I'm all for savings, even with low interest rates, they should increase over time"

Unfortunately not. If your savings are not keeping pace with inflation you are actually LOSING money. Inflation has been running at about 1.80% a year for 2019/early 20 in the UK, so if you are earning less than 1% on your savings your money is LOSING value. Most Vanguard index funds on the other hand were making about 8% a year for the past few years (some more, some less). Stocks are on a dip at the moment, if you are decades away from retirement invest. The equivalent is buying a house and renting. Prices may go up and down but historically over decades house prices steadily rise and keep pace with inflation. If you rented for the first 10 years or so you may be paying about the same to rent or buy but over time rent prices go up, while the house buyer is paying down their mortgage and building equity. I wouldn't necessarily recommend someone buy a house and hold it for 5 years but it would most likely be a good investment over 30 years, and of course gives you shelter and an emotional home so has a practical value too. You could maybe make money by renting our rooms as well.

There is talk in Italy of Banca d’Italia-enforced public investment in the country.
Meaning that people’s current accounts with a cash balance over a certain amount would be skimmed of x% to be repaid (with interest) at a date decided by the central bank.

Nobody knows the amount, the percentage or the period.

Sounds like something Boris and Co. might think up.

For those interested in researching Vanguard (full disclosure, I am just a bod on the internet, I recommend Vanguard because of their very low fees and staightforward investment vehicles that are easy to understand. I do not make any money personally by recommending them and you do not need an "advisor" of any sort to set up an account with them).

www.vanguardinvestor.co.uk

I think a way forward would be "negative interest" - money in savings accounts actually decreases, to encourage spending and boost the economy when things can reopen.

This is a great way to encourage more reliance on Universal Credit when people lose their jobs.

For those with tiny rates, nobody needs to be on 0.01%. Marcus are doing 1.2% easy access and Shawbrook are something like 1.15%. Obviously both of those are still crap, but they would give a better rate of return for a 6 or probably even 12 month expenses fund than some of you are getting.

Re stock market, I haven't checked my depressingly low pension fund but I have noticed my stocks and shares ISA has recovered. It lost about 10% of value when the market tanked last month but is now at about 3.6% since I opened it a couple of years ago.

womanly

Can you tell me more about Vanguard index funds please?

Don’t bother with crypto currencies unless you understand them. The golden rule is whether you could explain an investment to a child.
Regarding wheelbarrows of money to Tesco the only thing that is different now is that all major economies are effectively bankrupt and just rely on confidence in the system. In past periods of hyperinflation the affected country was at a major disadvantage to others.
Two things are certain though. First there will be inflation. All these companies that have been shafted by the Government’s crisis mis-management have got to get their finances back in order somehow. If they can’t increase volumes they will raise prices. Simple economics of survival.
Second, if you have looked after yourself, worked hard and saved hard then you will be shafted as usual.

I use plum savings and I’ve opened a stocks and shares isa through them. I put a chunk of money into their tech fund when lockdown was announced as the market had plummeted and I’m up 15.6% on my investment so far. Going to leave it to sit for another month or so then shift to something more stable