Whiskey and Water - What is your water?

[keylime]

I've been reading this book called Smarter Investing. It's a UK book and as such, the author is able to list a whole range of possible investments for his readers. In NZ, we're a lot more limited. But, as an investment strategy, and as a drink, Whiskey and Water sounds appealing.

The author points out the risks of holding cash as a defensive asset, as inflation can wipe it out. He recommends "assets that naturally protect against inflation" - which sound amazing.. but what do we have like this in NZ? Options in the book are: 'inflation-linked securities' - 'UK index-linked gilts, index-linked National Savings Certificates or globally issued inflation linked bonds'.

So, what is your water? I'll buy you a drink.

[cyclist]

I can't answer your specific question, but my thought is that the advice may not be as appropriate to a NZ environment anyway. Even now, our deposit rates after tax still mostly keep up with inflation I would have thought. On the other hand, you would be hard pressed to find somewhere in the UK to stick your cash, and have it earning 4%.

[kiora]

I've been reading this book called Smarter Investing. It's a UK book and as such, the author is able to list a whole range of possible investments for his readers. In NZ, we're a lot more limited. But, as an investment strategy, and as a drink, Whiskey and Water sounds appealing.

The author points out the risks of holding cash as a defensive asset, as inflation can wipe it out. He recommends "assets that naturally protect against inflation" - which sound amazing.. but what do we have like this in NZ? Options in the book are: 'inflation-linked securities' - 'UK index-linked gilts, index-linked National Savings Certificates or globally issued inflation linked bonds'.

So, what is your water? I'll buy you a drink.

Infratil. I like Gold label :)

[macduffy]

Inflation adjusted government bonds are available in NZ, keylime. Talk to your broker about terms and availability.

Disc: I don't hold.

[percy]

Don't bother with whiskey and water,just go straight to the top shelf,Drambuie,or in the case of keeping ahead of inflation,bank shares.
I have found owning the bank more profitable than having money in the bank.I prefer a NZ bank for fully imputed divies,but the Aussie banks are great long term investments.

[keylime]

Don't bother with whiskey and water,just go straight to the top shelf,Drambuie,or in the case of keeping ahead of inflation,bank shares.
I have found owning the bank more profitable than having money in the bank.I prefer a NZ bank for fully imputed divies,but the Aussie banks are great long term investments.

Thanks for your thoughts @percy. Could I ask which bank and how you bought them?

[keylime]

I can't answer your specific question, but my thought is that the advice may not be as appropriate to a NZ environment anyway. Even now, our deposit rates after tax still mostly keep up with inflation I would have thought. On the other hand, you would be hard pressed to find somewhere in the UK to stick your cash, and have it earning 4%.

thanks for your answer. What you say makes sense

[iceman]

Thanks for your thoughts @percy. Could I ask which bank and how you bought them?

If you go to the HBL tread you will find that Percy is well positioned there :-)

[GTM 3442]

I quite like Spirited Funds "Whisky Fund" ETF. You can find them in New York under WSKY.

Not sure if they do water though. Probably not, I'd guess.