Joined in 2023 
82 
63 About this deal
I suspect it’s just variants of cash buffer conservatism and there is no hard and fast answer. The 3/6 months living expenses really comes AIUI from the accumulation phase of life so you’re not forced into a drawdown should you e.g. lose a job or have a short term life event. Once you are actually in drawdown you perhaps don’t need such a buffer and maybe 1/2 months will do plus a plan on how to replenish which would be from your overall portfolio. My inclination is to leave that short term buffer out of the portfolio proper then rebalance/drawdown according to my chosen strategy. In practice if I drawdown once a quarter there might be times my short term cash is 4 months and hopefully never less than 1 month, but I hope I will plan my drawdowns conservatively so there is always more in the tank if needed at the next drawdown. This also means I somewhat over-estimated what I needed to have [by way of Flooring] in the Pot outside the DB scheme.
Smarter Investing By Tim Hale | Used | 9780273708001 - Wob Smarter Investing By Tim Hale | Used | 9780273708001 - Wob
Our clients are based across the UK, including Scotland and Northern Ireland, as well as Norway and Hong Kong. Hale’s response is – like a number of American commentators – to go short-dated and to consider diversifying your bond holdings. That said, his emphasis on TER was a real eye opener for me. I had previously been somewhat complacent about this and I now realise that I have a couple of funds both of which are above 1% TER (1.69% and 1.96% – ouch). In addition I had also paid 5% up fronts on a couple of funds. If I knew then what I know now …
MSE News
This book is a 'must read' for anyone with personal, trust or pension assets to invest', Mark R Richardson, former CEO Chase Asset Management Also notice the common portfolio trope of splitting your bond allocation 50/50 between nominal bonds and their index-linked cousins. The nominals typically do better in a recession but get battered by soaring inflation. Meanwhile index-linked bonds have anti-inflation features built in. Andrew Smithers states that chance of loss (US data again) reduces to <5% at 14 years which is very close to 1% at 20 yr. ZXSpectrum48K #48: on your first paragraph – IIRC you’re a fixed income investment professional, so I’m not sure your portfolio’s performance is very relevant to these standardised portfolios :). Certainly a basic 60/40 S&P500 / US Treasuries buy and hold portfolio with annual rebalancing has not outperformed a 100% S&P500 portfolio over that time period. The purpose of adding bonds is not to outperform in any case, as you know.
Tim Hale - Smarter Investing — MoneySavingExpert Forum Tim Hale - Smarter Investing — MoneySavingExpert Forum
The main problem I can see is that historically, bonds are meant to spike up when equities tank, significantly reducing volatility. However, they just can’t do this any more as they are so highly valued already, particularly if the duration of bonds held is lower.Hale has also downgraded the return expectations for his range of model portfolios that form the centerpiece of the book. The effect is most pronounced on portfolios with a heavy bond allocation, but the drag was enough to make me wince even on a 60:40 equity/bond allocation. Cash is there as an all-round workhorse providing for immediate liquidity and moderate recession protection. It’s also less vulnerable to inflation than medium bonds. Personally, I reject the idea that anyone with a 10-year+ time horizon should be 100% in equities if they are “properly educated”. In my investing journey from 2000, 100% S&P index would have been worth 93% a decade later (72% in real terms). Compare to 156% in cash, 210% in 10y+ USTs, 198% in commodities. It was 2021 when US equities finally outperformed a 60:40 portfolio. P.S. If you’re fixing your financial life for the first time then I’d pair Smarter Investing with How to Fund the Life You Want. The latter offers a bigger picture view of the UK’s personal finance universe. The former is more your investment 101 course.
Smarter Investing - Pearson
While this is clearly true in the aggregate, I firmly believe that it’s possible for the UK private investor to beat the market. Income investing is a popular retirement strategy that swerves the risk of running out of money by leaving your capital untouched. Living expenses are funded purely from dividends and interest.the Ready for Anything portfolio is pretty similar to mine. My fiddling… err… considered research has led me from long-ish term bonds to intermediate US Treasuries to 20% in GIST/GISG in November ’21, just before inflation made it’s unwelcome re-appearance. With 15% Gold (for tail events), that protected me well in the ’22 tantrum. In nominal terms, at least. After your series on equities, I’m considering moving half of GISG/GIST to commodity funds as my state and small DB pension start paying out. But currently I need the bonds to maybe spend down in RE. That would leave me 25% in Gold and commodities. The All Weather combines an extremely volatile mix of asset classes that gel because they should counterbalance each other over time. That’s the longest timeframe I can get for a representative combo of ETFs. It’s not clear to me how justETF’s portfolio tool handles rebalancing. The UK’s downgrade from triple-A status frees Hale to offer an additional fixin’ of global and corporate bonds scored AA and above by the credit rating agencies. From here, you can easily move up the gears to a classic 60/40 portfolio, or even more gung-ho allocations if you discover you’d sell your grandmother to buy more shares in a market meltdown.
Smarter Investing By Tim Hale | Used | 9780273722076 | World Smarter Investing By Tim Hale | Used | 9780273722076 | World
I guess its unrealistic to expect the free trading platforms to offer us everything but I like InvestEngine’s portfolio features and am considering it for managing my GIA post TFLS crystallisation. Even more attractive if they eventually offer SIPP albeit at a charge. If you're a regular Superdrug shopper, you can now earn more freebies and discounts under its Health & Beautycard loyalty scheme, as the retailer has launched new 'VIP Rewards' as part of it.
The main reason to read the 1st edition is for several lost passages on the behaviour of UK bonds between 1900 and 2004. Have you ever considered looking at Trend Following funds as a valid fixed allocation segment for a portfolio? (like in Chris Cole’s Dragon Portfolio) I’ve actually use this instead of a bond allocation now (from beginning of 2022, so worked out well so far). As with last week’s article on the Naked Trader, there hasn’t been much to disagree with in the introductory chapters. this is all about “thinking fast and slow”– making sure that your intuitive brain doesn’t overpower your reflective one
Great Deal 
New Comment