Bitcoin Forum
July 16, 2019, 01:04:48 AM *
News: Latest Bitcoin Core release: 0.18.0 [Torrent] (New!)
 
   Home   Help Search Login Register More  
Pages: [1] 2 »  All
  Print  
Author Topic: Recommend me some low-risk inflation beating investments.  (Read 2127 times)
protokol
Legendary
*
Offline Offline

Activity: 1188
Merit: 1011



View Profile
June 16, 2014, 07:12:12 PM
 #1

I'm looking to invest £5k into something that will outperform inflation. I already own BTC, and want to diversify into something low-risk, low-return - anything above 5%/year would be OK.

I'm not convinced with the PM markets, they seem to be highly manipulated and bearish right now.
If I had 50x the money I would invest in a house, but unfortunately I'm too poor for that.

I'm thinking along the lines of certain stocks (tech companies like Google/Tesla?), maybe more obscure PMs like Platinum/Palladium? Any suggestions?

cheers  Smiley



Guess I'll make that my sig, all the cool kids have one...
1563239088
Hero Member
*
Offline Offline

Posts: 1563239088

View Profile Personal Message (Offline)

Ignore
1563239088
Reply with quote  #2

1563239088
Report to moderator
1563239088
Hero Member
*
Offline Offline

Posts: 1563239088

View Profile Personal Message (Offline)

Ignore
1563239088
Reply with quote  #2

1563239088
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1563239088
Hero Member
*
Offline Offline

Posts: 1563239088

View Profile Personal Message (Offline)

Ignore
1563239088
Reply with quote  #2

1563239088
Report to moderator
1563239088
Hero Member
*
Offline Offline

Posts: 1563239088

View Profile Personal Message (Offline)

Ignore
1563239088
Reply with quote  #2

1563239088
Report to moderator
1563239088
Hero Member
*
Offline Offline

Posts: 1563239088

View Profile Personal Message (Offline)

Ignore
1563239088
Reply with quote  #2

1563239088
Report to moderator
gentlemand
Legendary
*
Offline Offline

Activity: 2058
Merit: 1823


Baby Blue Panties


View Profile
June 16, 2014, 07:21:33 PM
 #2

In these chastened times 5% and above is considered risky. As you used a £ sign I assume you're in the UK. Have you looked into a stocks and shares ISA? I stuck a bit into the Fundsmith one and it's performed well.

protokol
Legendary
*
Offline Offline

Activity: 1188
Merit: 1011



View Profile
June 16, 2014, 08:24:42 PM
 #3

In these chastened times 5% and above is considered risky. As you used a £ sign I assume you're in the UK. Have you looked into a stocks and shares ISA? I stuck a bit into the Fundsmith one and it's performed well.

Yeah I thought 5% might be pushing it...  Cheesy

Didn't know you could get stock+shares ISAs, cheers. I'll check some out.

Guess I'll make that my sig, all the cool kids have one...
IIOII
Legendary
*
Offline Offline

Activity: 1156
Merit: 1012



View Profile
June 16, 2014, 08:45:43 PM
 #4

I'm looking to invest £5k into something that will outperform inflation. I already own BTC, and want to diversify into something low-risk, low-return - anything above 5%/year would be OK.

Buy forest. It has predictable returns overall (in decades) above inflation (even if not managed intensively) and is really low risk if bought at reasonable prices. However you have to have knowledge in forest management.
It also offers recreational benefits.
practicaldreamer
Hero Member
*****
Offline Offline

Activity: 770
Merit: 500


View Profile
June 16, 2014, 09:05:57 PM
 #5

Index linked gilts,bonds and savings certificates are a safe bet. NS&I are backed by HM Treasury.
ShakyhandsBTCer
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250


It's Money 2.0| It’s gold for nerds | It's Bitcoin


View Profile
June 16, 2014, 10:14:46 PM
 #6

Quote
want to diversify into something low-risk, low-return - anything above 5%/year would be OK

You are not going to find any investment that is low risk that will pay 5% interest/growth/return

Your best bet would probably be to invest in investment grade corporate bonds with a 5-10 year maturity. I don't think you would get quite 5% but it would be pretty low risk. When interest rates rise the market value of these bonds would fall, but your principle would be repaid when the bonds mature assuming the issuer does not default
Scott J
Legendary
*
Offline Offline

Activity: 1792
Merit: 1000


View Profile
June 16, 2014, 10:19:06 PM
 #7

Something like this would be a good option:

http://www.partnershipbond.com/content/jlbond/home.html
DurbanPoison
Member
**
Offline Offline

Activity: 111
Merit: 10


View Profile
June 18, 2014, 10:34:05 PM
 #8

I'm looking to invest £5k into something that will outperform inflation. I already own BTC, and want to diversify into something low-risk, low-return - anything above 5%/year would be OK.

Buy forest. It has predictable returns overall (in decades) above inflation (even if not managed intensively) and is really low risk if bought at reasonable prices. However you have to have knowledge in forest management.
It also offers recreational benefits.

What a great suggestion! I'd definitely take a piece of forest over stocks/bonds/paper promises any day as well.

The great thing about a piece of land like a forest is that not only will you have a retreat if/when shit hits the fan, you can also sell firewood! Each tree is like a stack of bills  Grin
keithers
Legendary
*
Offline Offline

Activity: 1386
Merit: 1001


This is the land of wolves now & you're not a wolf


View Profile
June 18, 2014, 11:50:51 PM
 #9

If you can get hooked up with a good financial advisor who can just invest whatever you can afford (per month), spread across stocks, mutual funds, bonds, equities, etc. you should be able to beat inflation.

Having money automatically deducted from your bank account also forces you to save money, because that money is basically spent and just disappears from your bank every month.  It adds up quicker than you think, and if you do it with a comfortable amount, you almost don't even notice that it is gone...
ShakyhandsBTCer
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250


It's Money 2.0| It’s gold for nerds | It's Bitcoin


View Profile
June 19, 2014, 12:01:56 AM
 #10

I'm looking to invest £5k into something that will outperform inflation. I already own BTC, and want to diversify into something low-risk, low-return - anything above 5%/year would be OK.

Buy forest. It has predictable returns overall (in decades) above inflation (even if not managed intensively) and is really low risk if bought at reasonable prices. However you have to have knowledge in forest management.
It also offers recreational benefits.

What a great suggestion! I'd definitely take a piece of forest over stocks/bonds/paper promises any day as well.

The great thing about a piece of land like a forest is that not only will you have a retreat if/when shit hits the fan, you can also sell firewood! Each tree is like a stack of bills  Grin

In order to sell your trees you will need to spend some amount of money in order to cut down, transport and sell the trees.
wachtwoord
Legendary
*
Offline Offline

Activity: 1960
Merit: 1029


View Profile
June 19, 2014, 12:03:45 AM
 #11

A wide low fee index fund. Buy the S&P500 or something.
protokol
Legendary
*
Offline Offline

Activity: 1188
Merit: 1011



View Profile
June 19, 2014, 01:28:31 PM
 #12

Thanks for all the suggestions! Looks like I've got some research to do, also need to think how liquid I need the investment to be...

The forest idea sounds fun, I had thought of buying land, but ruled it out as most standard plots of land (big enough to build a house on) are too pricey for me. On the topic of novel investments, I spoke to a guy the other day that bought a few bottles of old French wine (Bordeaux I think) at auction, and sold them a few years later for about 5x what he paid for them. Risky as hell, but an interesting idea, and there can be capital gains benefits as well.

Guess I'll make that my sig, all the cool kids have one...
ShakyhandsBTCer
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250


It's Money 2.0| It’s gold for nerds | It's Bitcoin


View Profile
June 20, 2014, 12:53:00 AM
 #13

A wide low fee index fund. Buy the S&P500 or something.

I would not call the stock market "low risk"
Anon136
Legendary
*
Offline Offline

Activity: 1666
Merit: 1211



View Profile
June 20, 2014, 12:59:19 AM
Last edit: June 20, 2014, 01:46:53 AM by Anon136
 #14

The safest investment in the world might be nickels. Also there are pre-1982 copper pennies. You can buy one of these http://www.ebay.com/itm/2014-RYEDALE-SIDEKICK-PENNY-SORTER-/171342840837 and pick up a box of pennies on the way home from work every day from a different bank. Pre-1965 us coinage is 90% silver. This is my preferred choice. Food with a long shelf life is smart. Ammo is smart. Anything thats based on paper registered at the DTCC is not safe imo but just because it isnt safe doesnt mean its always a terrible idea if you know what you are doing.

Rep Thread: https://bitcointalk.org/index.php?topic=381041
If one can not confer upon another a right which he does not himself first possess, by what means does the state derive the right to engage in behaviors from which the public is prohibited?
IIOII
Legendary
*
Offline Offline

Activity: 1156
Merit: 1012



View Profile
June 20, 2014, 01:52:24 PM
 #15

In order to sell your trees you will need to spend some amount of money in order to cut down, transport and sell the trees.

Yes, but such costs are only significant if your stake of forest is really tiny. People tend to underestimate the value of natural wood - at least in Europe prices have surged greatly. Even simple firewood is valuable - and you don't have to cut down entire trees to collect that.

Thanks for all the suggestions! Looks like I've got some research to do, also need to think how liquid I need the investment to be...

The forest idea sounds fun, I had thought of buying land, but ruled it out as most standard plots of land (big enough to build a house on) are too pricey for me. On the topic of novel investments, I spoke to a guy the other day that bought a few bottles of old French wine (Bordeaux I think) at auction, and sold them a few years later for about 5x what he paid for them. Risky as hell, but an interesting idea, and there can be capital gains benefits as well.

Normally building areas are much more costly than farmland or forest. If you want an even cheaper option and have lots of patience you can also buy forest clearance areas to regrow forest on them - if available.

I would not invest in luxury goods. These are high risk speculations and greatly depend on economic cycles.

wachtwoord
Legendary
*
Offline Offline

Activity: 1960
Merit: 1029


View Profile
June 20, 2014, 11:45:08 PM
 #16

A wide low fee index fund. Buy the S&P500 or something.

I would not call the stock market "low risk"

I would. The index will provide you an 10% APR over a 100 year period.
Swordsoffreedom
Hero Member
*****
Offline Offline

Activity: 1008
Merit: 1000


★YoBit.Net★ 1400+ Coins Exchange


View Profile
June 20, 2014, 11:46:44 PM
 #17

In these chastened times 5% and above is considered risky. As you used a £ sign I assume you're in the UK. Have you looked into a stocks and shares ISA? I stuck a bit into the Fundsmith one and it's performed well.

If you can find some good bonds in the bond market you might get offered 5% but strangely enough even that amount if return is considered risky at this point.

In my opinion your best bet is to buy a bank stock with a solid dividend to its shareholders.

Erdogan
Hero Member
*****
Offline Offline

Activity: 896
Merit: 1000



View Profile
June 21, 2014, 12:01:11 AM
 #18

A wide low fee index fund. Buy the S&P500 or something.

I would not call the stock market "low risk"

I would. The index will provide you an 10% APR over a 100 year period.

100 years, nice, but there are problems with the index when stocks go in and out, splits, joins, buybacks, dividends, mergers and so on. The effect is that if you have a mix of stocks exactly proportional to the index weights, you will still not get a profit equal the index gain.



░░░░░░░██████████████████████████████████████████████████████████████████████████████████████████░░░░░░░
████████████████████████████████████████████████████████████████████████████████████████████████████████
████████████████████████████████████████████████████████████████████████████████████████████████████████
░███▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀███░
░███░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░███░

      ████      █████████▄ ▀██████████▀  ▄████████▄       ▄█████████▄     ████ ████       ███             
     ██████     ███    ▀███▄   ████    ▄████▀  ▀█████   ▄████▀   ▀████▄   ████ █████      ███             
    ████████    ███     ████   ████  ▄███▀             ████  ▄███▄  ████  ████ ██████▄    ███             
   ████  ████   ███    ▄███▀   ████  ████             ████           ████ ████ ███ ▀███   ███             
  ▄███    ███▄  █████████▀     ████  ████             ████  ▀▀▀▀▀▀▀  ████ ████ ███   ███▄ ███            ▀
  ███  ██  ███  ███  ███       ████  ████▄             ████  ▀███▀  ████  ████ ███    ███████   ▄█████▄█ ▄
 ████ ████ ████ ▀███  ███▄     ████   ▀████▄    ▄█████  ▀████▄   ▄████▀   ████ ███     ▀█████   ██    ██ █
████        ████ ▀███  ████    ████     ▀██████████▀      ▀█████████▀     ████ ███       ████ ▄ ▀█████▀█ █

░███░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░███░
░███░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░███░
████████████████████████████████████████████████████████████████████████████████████████████████████████
████████████████████████████████████████████████████████████████████████████████████████████████████████
░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░██████░░░██████░░░██████░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░
░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░█████░░░░░████░░░░░█████░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░
░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░████░░░░░░░██░░░░░░░████░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░
░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░███░░░░░░░░░░░░░░░░░░███░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░

██
████
██████
████
██
WEBSITE
▬◎▬◎▬◎▬◎▬
TWITTER

██
████
██████
████
██
FACEBOOK
▬◎▬◎▬◎▬◎▬
INSTAGRAM

██
████
██████
████
██
LINKEDIN
▬◎▬◎▬◎▬◎▬
MEDIUM

██
████
██████
████
██
Dalmar
Hero Member
*****
Offline Offline

Activity: 742
Merit: 500


What I forgot > What you know


View Profile
June 21, 2014, 01:33:32 AM
 #19

Stay away from precious metals. They are in a long term bear market. Buying now could be equivalent to buying PMs the early 80s and having to bag hold for decades just to keep up with inflation.

There will be many bull traps along the way, but the overall trend is down for probably a decade.

STT
Legendary
*
Online Online

Activity: 2142
Merit: 1132


CyberDice - Best Bitcoin Dice Game


View Profile WWW
June 21, 2014, 02:18:19 AM
 #20

In the early eighties they raised rates to 20% before they managed to undo the nixon overhang of weaker currency.    You really want to tell me you think they can do that now.

Thats about equal to calling oil bearish as they invent the motorcar.   Never before have we had this much crap and upset in the monetary system, its an epidemic. Maybe metals arent it but it sure is a possibility and if nothing else they'll outlast cheques or bonds

Theres land and theres gold, everything else is risky business and hard to say.  A share should last in theory and thats my preference but as above some will argue bearish tenancies and higher dollar worth in future will retard company gains and finance 

Pages: [1] 2 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!