I have been saving (trying to) for 50 years and I reckon that the money I have saved is worth about a third due to inflation,
The bankers with there wizard schemes smoke and mirrors more like. Apart from property has anything else matched inflation over the last 50 years.
Categorized | Affiliate Marketing 101
Long Term Inflation Proof Saving?
Posted on December 25, 2012.
Overall the stock market has outpaced inflation. Your problem appears to be you have not invested in blue chip stocks that hold there value over the long run. The secret is buy and hold. Don’t try to time the market or day trade. Don’t invest in schemes that sound to good to be true and most importantly, don’t listen to stock tips from Uncle Joe!
You could put your money into savings (which you did, it seems) or into bonds or stocks. A lot depends also on how much risk you are comfortable with. For long term, both bonds and stocks have done well versus just inflation, but over time stocks generally outperform bonds. Even over the last 90 years including the Great Depression and other recessions, 2 out of 3 years stocks went up. You easily could have had a lot of growth, even with taking inflation and taxes into consideration.
So it appears now you are elderly, and want a better return. Generally stocks are for a time horizon of at least 5 years (or perhaps 3 if the economy looks like it’s going up and you invest in a solid blue chip corporation). Now interest rates are extremely poor for savings and not much better for bonds, but you might look into some bond funds with a better return, or some stock-bond hybrid mutual funds.
Once you get a bit of money saved up, consider opening a brokerage account.
There will be someone that can advise you on this.
For now, just keep working hard on having at least 5 months of income in savings.
And know that being debt free is part of retirement.
This means mortgage debt free.
Stocks.
If prices go up, you need to own pieces of companies that sell stuff that’s going up in price.
In 1972, one share of WalMart stock cost $32. With all the splits, you’d have 800 shares by now, each at $68.25
Gold
Equities
Good claret
Art
Index-Linked Gilts
Bonds when interest rates wer high (did you miss that?)