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Worst case scenario

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  • 23-03-2017 12:31pm
    #1
    Zenify
    Registered Users Posts: 861 ✭✭✭


    Let's just say the UK leaving the EU starts a chain reaction and the eu starts to fall apart and Trump prevents US companies from operating here either through incentives or penalties.

    Would it be a good idea or bad idea to have cash?


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    #2
    petethedrummer
    Registered Users Posts: 7,604 ✭✭✭petethedrummer


    Cash as in physical cash buried in the garden or cash as in money in an easily accessible bank account? Also which currency?


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    #3
    Zenify
    Registered Users Posts: 861 ✭✭✭Zenify


    petethedrummer wrote: »
    Cash as in physical cash buried in the garden or cash as in money in an easily accessible bank account? Also which currency?

    cash as in euros in the bank.


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    #4
    petethedrummer
    Registered Users Posts: 7,604 ✭✭✭petethedrummer


    Even without the imminent collapse of the world order, having X months of living expenses in a rainy day fund available at short notice is probably a good idea.

    The size of X is debatable.


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    #5
    Zenify
    Registered Users Posts: 861 ✭✭✭Zenify


    I wasn't very clear in my question. I mean is it a good idea for someone to have ALL their assets as cash. life savings etc. No property/mortgage no shares nothing, just savings in a bank.

    This is my current situation and I'm a little worried. I don't want to buy shares as I may buy property in the short term. I'm not buying property now as I wouldn't be happy paying the current price.

    I'm afraid of hyper inflation or a collapse of the euro. I know this is a small possibility but what do others think?


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    #6
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,060 Mod ✭✭✭✭AlmightyCushion


    Zenify wrote: »
    I wasn't very clear in my question. I mean is it a good idea for someone to have ALL their assets as cash. life savings etc. No property/mortgage no shares nothing, just savings in a bank.

    This is my current situation and I'm a little worried. I don't want to buy shares as I may buy property in the short term. I'm not buying property now as I wouldn't be happy paying the current price.

    I'm afraid of hyper inflation or a collapse of the euro. I know this is a small possibility but what do others think?

    Having euro in the bank won't protect against that. The only way to safeguard against that would be to have your savings in another currency (e.g. dollars, sterling, swiss franc) or something like gold/silver. This also has downsides. The euro could strengthen against these meaning you would lose money. If you hold gold or silver instead of currencies then the price of them could collapse either. If you earn your money in euro and plan to buy a property relatively soon in euro, then I think the safest bet is to leave it in euro in a bank account earning the highest interest you can.


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    #7
    Silane
    Registered Users Posts: 176 ✭✭Silane


    Zenify wrote: »
    I wasn't very clear in my question. I mean is it a good idea for someone to have ALL their assets as cash. life savings etc. No property/mortgage no shares nothing, just savings in a bank.

    This is my current situation and I'm a little worried. I don't want to buy shares as I may buy property in the short term. I'm not buying property now as I wouldn't be happy paying the current price.

    I'm afraid of hyper inflation or a collapse of the euro. I know this is a small possibility but what do others think?

    Buy some gold, and hold some of your cash in other currencies.


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    #8
    petethedrummer
    Registered Users Posts: 7,604 ✭✭✭petethedrummer


    Zenify wrote: »
    I wasn't very clear in my question. I mean is it a good idea for someone to have ALL their assets as cash. life savings etc. No property/mortgage no shares nothing, just savings in a bank.
    The government bank guarantee is only to 100,000 so that's not entirely safe.
    Zenify wrote: »
    This is my current situation and I'm a little worried. I don't want to buy shares as I may buy property in the short term. I'm not buying property now as I wouldn't be happy paying the current price.
    Stocks are considered a liquid asset.
    Zenify wrote: »
    I'm afraid of hyper inflation or a collapse of the euro. I know this is a small possibility but what do others think?
    Are you reading the comments section of Zerohedge or watching Peter Schiff videos?

    I think almost any decent advice would be to have a diversified portfolio. Spread your risk across different asset classes.


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