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3 stocks to help beat Australia’s falling standard of living

With the latest report from research organisation Per Capita suggesting real wages are going backwards in Australia, it would appear it is as critical as ever for Australians to take matters into their own hands if they want to get wealthy.

According to Per Capita’s report, the average worker recorded a $118 fall in the purchasing power of their wage in 2013 due to wages failing to keep up with the rate of inflation.

One of the soundest strategies for building long-term wealth and beating inflation is to own equities. While investing won’t of course replace a salary for most people in terms of its ability to provide an adequate standard of living, owing a portfolio of shares can certainly provide a boost to one’s overall living standard.

If you’re considering using the share market to help boost your overall standard of living then a long-term, conservative strategy is a sensible option for most investors to follow. Indeed, with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) losing 2% last week, investors need to tread carefully.

Here are three stocks which should provide inflation-beating long-term gains:

  1. Argo Investments Limited (ASX: ARG) – a listed investment company (LIC) that provides shareholders with exposure to a diversified portfolio of large capitalisation, blue-chip stocks.
  2. WAM Capital Limited (ASX: WAM) – a LIC that provides shareholders with exposure to a diversified portfolio of small to medium-sized stocks.
  3. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – one of the few true conglomerates that is run by managers with both ‘skin in the game’ and a reputation for sound investment decision making.

5 stocks under $5

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*Extreme Opportunities returns as of June 5th 2020

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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