Recession proofing cash

There's some good research into how very wealthy families keep their wealth for generations in the Jim Rickards book, The Road to Ruin.
He looked at European families that had preserved wealth for hundreds of years, through wars, famines and financial collapses.
The two assets that always prevailed were fine art and gold.
Fine art is often overlooked, but you can buy small, original, Picasso sketches from £500, so its not completely out of reality to own some.

>>1792258
You would be sensible to switch some GBP for gold and enjoy sterling sinking lower. I bought at £700 last year and it's now around £1000. This is more to do with sterling sinking over Brexit fears than for gold rising.

Don't get meme'd by the retarded gold bugs >>1792269 >>1792273.

Gold is a great way to lose money. It doesn't hedge against the dollar. Just look at its performance over the last seven years.

You're also worrying too much any recession. The guy that invested everything in the s&p the day before the 08 crash would be sitting way up right now.

You want something that generates income to smooth over bumps during a recession, such as rental property or a cas business.

>>1792258

If your investment horizon is 40 years than timing is largely irrelevant, mainly because all the money you put in later on in life will dwarf what you stand to earn by buying low. Better idea is to just reduce your contribution now and spike it during the recession.

If you're trying to time the market though, just go all in with stocks/options and make a killing after the recession. Saying you want to time the market and then going for mutual funds is counter-intuitive. It's like trying to swim with a life jacket on--yeah you won't drown but if you trust your swimming ability you won't drown anyways, and you'll swim faster without the jacket.

>>1792258
Do you mean "safe" or do you mean "profitable"?

If you're actually after safety then you can just have £85000 (per financial institution) sitting in savings accounts guaranteed under FSCS protection. Or any amount held with NS&I.

If you're after profit, why would you want to trade forex with such a weak pound?

Calm your tits and sit it out. Preferably look for opportunities to buy undervalued stocks amidst all the Brexit/Trump scaremongering.

>>1792258
By the way, what savings account is giving 1% these days?

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>>1792519
https://www.gsbank.com/en.html

>>1792532
Thanks, that's interesting. But as OP is a britfag I was asking about UK accounts.

>>1792302
>>1792514

I was after something that has a greater chance of holding value than sterling over, but I guess you're right - I'll just keep being patient.

Post Office offer 1.01% for 12 months, after which I plan to transfer to sainsburys who offer 0.95%.

>>1792575
* You've got to keep your money with them for a year.

>>1792575
How much are we talking here? Are you already using Santander, Tesco etc to earn interest on current account balances? If you're looking to just stay in cash and you're talking five figures or less that's probably the way to go.

>>1792603
£110k - don't have a high interest current account at the moment but will open one soon.

I'm not necessarily looking to stay in cash if there is an option that has a higher chance of retaining it's value than the pound during a recession.

Am I just being retarded trying to time the market, or am I being sensible not investing now whilst the markets are are so high?

>>1792258
>recession proofing cash

cash.
cash.
cash.

cash is already the safest place during a recession, that or treasuries.

unless you have over a a million in cash, try a putting them in several bank accounts

>>1792258
>Would I be sensible to exchange all my GBP for USD?

yeppers. the dollar is the only solid currency on earth. it could double from here, believe it or not.

>>1792625
Interest paying current accounts generally have attractive headline rates but a relatively low cap on how much you can earn interest on. Therefore if you're going that route you may have to game the system by opening multiple accounts. If you check Martin Lewis' website there's a frequently updated list of which banks are offering what. Somebody even made a calculator that you input your cash value into and it tells you which accounts to open and what balance to maintain them at to get the optimum interest.

Anyway, that should easily get the first 40-50k of your money beating inflation.

As for the rest - well, it's a little odd you haven't considered stocks and shares yet. A cheap (low fee) portfolio of whole-market funds held in an investment ISA will comfortably beat inflation mine years out of ten. If you were to max out this tax years ISA allowance, and again on the 6th of April, that would be another £35000 invested.

It's time in the market, not timing the market. What makes you think the market is expensive at the moment? It's an expensive time to be trading the weak pound against other currencies but buying stocks, in sterling, on a UK investment platform will not be directly affected by that. The ftse has been doing fantastically since the Brexit vote, in part *thanks to* the weak pound. Get in there.

Just remember the FSCS limit is £85k so spread your cash and investments between at least two providers and you're covered for anything short of a nuclear holocaust.

And that's not even mentioning risky high-yield shit like peer-to-peer. If you were willing to expose a few grand to P2P you could be making over 10% on that, further raising your average return over inflation.

Up to you though mate. Do some research. But £110k is far too much to be languishing in a 1% account.

>>1792258

Index funds. Or gold stocks.

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>>1792289

>anyone who says anything remotely positive about metals is a white nationalist paramilitary doomsday prepper gold bug

It's performed well. Gold isn't volatile, the dollar is. Prices are also manipulated downward.

If you don't have any gold or silver after 103 years of the Federal Reserve, 16 years of Bush and Obama and now fucking Trump, then you're lost and damned.

>>1792532
Wtf this is too good to be true
Higher than Navy Federal which is what I use now
What's the catch?

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>>1793000
>What's the catch?

Just doing business with and trusting Goldman Sachs.