How to protect your savings from being eroded by inflation
Accept certain inalienable truths:
– Prices will rise
– Politicians will philander
– You too will get old
And when you do… you’ll fantasize that:
– Prices were reasonable
– Politicians were noble
– And you invested in stocks and shares to offset inflation
History shows that investing in stocks and shares is one of the best ways to win the battle against inflation.
Just take a look at the below graph. It shows the real returns (i.e. after inflation) of different investments over the past 120 years.
(Source – JP Morgan)
There’s nothing wrong with keeping some money in cash to cover short-term or unexpected expenses.
But there’s no place for cash in your long-term investment strategy.
All the best,
James Mackay, Independent Financial Adviser in Bristol
P.s – if you want a little more help with navigating your investments, check out the 7 Simple Steps to Investment Success. It provides you with a proven process to help you avoid costly mistakes and tilt the odds in your favour. You can get a copy by clicking here.