Savings And Investments

[lupestripe]

With inflation outstripping interest rates on nearly all savings accounts and ISAs perhaps now is the time to look at other ways of maximizing returns.

I have never turned to the markets but I may have to study this more in-depth. Investing in BP or banking may be a good idea after recent events but the current climate makes things uncertain in both sectors (Middle East unrest in one, Portugal's crisis and new tax levies on the other). I have never been a fan of risk so where is best - commodities?

Pensions is another thing I am considering but I simply do not trust them. Governments and financial authorities seem to make the rules up as they go along and I feel this is a big black hole in which to pour money on the off chance I survive to whatever the retirement age will be in 40 years time. The BoE can't predict the financial situation next year accurately so who is to say what the state of the world will be in 2050? These are gut feelings rather than ones of any education so I do need to look into this further.

Aside from that, what else is there? Megadog linked me to a bond which looks interesting and I may consider locking money away for an extended period of time to gain higher interest. I don't have loads of spare cash but it would be nice for it to do some work for me rather than devaluing over time.

Posted via LiveJournal app for iPhone.

Comments

[slinkat.livejournal.com]

Exactly what I've been doing. Nice store of value, tangible and collectable, if you go for bullion coins rather than 1oz art bars. Very easy to buy, and you can build a nice litle collection of Britannias, Silver Eagles, Maples and Philharmonics for not much outlay. Only drawback (in the UK at least) is you pay VAT. Gold is free of such drawbacks, but a 1oz Kruggerand is a somewhat heftier proposition, and the fractional gold coins are too small when you get down to affordable levels.

Would be wary of savings bonds. The rates might be better, but you have to tie your cash up, so you lose flexibility. What about a shares ISA? Average in each month and it's inexpensive as long as you keep an eye on the charges, although that's not an issue with trackers. All manner of commodity funds and ETFs out there, from sensible (FTSE all share etc) to hugely volatile (junior miners, junior oil E&P etc). Also have the likes of BullionVault and Gold Money which are worth a look, although the storage fees are a bit high for low values. You can buy gold in a SIPP now, which is an interesting idea.

[lupestripe.livejournal.com]

Shares ISAs are only really good if you know what you are doing. In that case, I would have to consult a financial advisor. With bonds, I think not much will change in the next three years so perhaps this is a small risk worth taking.

I'll check the other links soon - where would you store bullion and the like. Surely not in your own home?