Recommend me some low-risk inflation beating investments.

[protokol]

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 

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[gentlemand]

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]

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... 

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

[IIOII]

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]

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

[ShakyhandsBTCer]

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]

Something like this would be a good option:

http://www.partnershipbond.com/content/jlbond/home.html

[DurbanPoison]

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 

[keithers]

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]

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 

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]

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

[protokol]

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.

[ShakyhandsBTCer]

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

I would not call the stock market "low risk"

[Anon136]

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.

[IIOII]

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]

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]

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]

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.

[Dalmar]

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]

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