What peopl in their 60's and upward need to do most is protect what they have. This probably applies to all savers but applies much more to those that are no longer earning or are about to retire.
I have recently cashed in my funds and most shares so as to protect against the next downward trend which may or may not come soon but will definitely come. The problem is inflation may eat away my capital and there is nowhere really with any real return.
in 2010 I will continue to shop around for a bargain only buy what I need mostly in the sales or in discount outlet stores . Also I will save any extra money that I earn, and reduce my current mortage by making overpayments.
And keep shopping every fortnight I spend less and I am time richer and keep a strict eye on my finances. But also have fun.
Totally agree Marlene.Just a pity that people who have overstretched themselves financially, realise,only now, that when you CONTINUALLY overspend, the day of reckoning always arrives.
Remember what Dickens said about how to be happy - 20 pounds a year - spend 19 pounds 19 shillings and sixpence and you will be happy,a shilling spent the other way and you will be wretched and unhappy. Great wisdom particularly today!
Dave,I agree in part but as you say,if you are totally in cash you arent risk free are you.If inflation picks up again your wealth will fall in value in real terms.Thats the risk with holding cash - great with falling prices but not so good the other way round.If you hold some of your assets in shares or funds,these can be a hedge against rising inflation.
If youre looking for income consider an equity income and/or a corporate bond fund-at least for a small part of your investments.
I have always learnt - dont put all your eggs in one basket and that includes a cash holding.
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