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Base rate could be at 0.5% untill the end of 2011

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  • Thrugelmir
    Thrugelmir Forumite Posts: 89,546
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    mewbie wrote: »
    Put 20% of your cash savings into Corporate Bonds through an ISA. They will earn more interest than the rest of your cash, easily. No 100% safe way to invest of course, but they should be pretty good for a couple of years.

    I am not a financial adviser. This might be the road to ruin.

    Good quality bonds have risen sharply this year already. Though still attractive yields to be had.
  • chucky
    chucky Posts: 15,170 Forumite
    Thrugelmir wrote: »
    Good quality bonds have risen sharply this year already. Though still attractive yields to be had.

    what is an atractive yield?

    will this yield change when/if inflation rears it's head?
  • Thrugelmir
    Thrugelmir Forumite Posts: 89,546
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    chucky wrote: »
    what is an atractive yield?

    will this yield change when/if inflation rears it's head?

    I'm happy to invest at 10% plus. ( without the hassle of tenants ;) ).

    Though most of the quality corporate bonds have narrowed in yield some were as high as 14/15% in March when defaults were expected to be higher.

    I reinvest income so return compounds and smooths out price fluctuations.
  • chucky
    chucky Posts: 15,170 Forumite
    Thrugelmir wrote: »
    I'm happy to invest at 10% plus. ( without the hassle of tenants ;) ).

    A diverse portfolio is always a good thing - i bet you can't you buy bonds from motivated sellers at 25% below market value? ;)

    Thrugelmir wrote: »
    Though most of the quality corporate bonds have narrowed in yield some were as high as 14/15% in March when defaults were expected to be higher.

    I reinvest income so return compounds and smooths out price fluctuations.

    that sounds very good - dividend re-investment is a no-brainer if you don't need the cash. you'll have to PM with a list of from your porfolio.
  • MiserlyMartin
    MiserlyMartin Forumite Posts: 2,219
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    "Base rate could be at 0.5% untill the end of 2011."

    Could. The media love that word.

    Or on the other hand,... "Base Rates could rocket to 6% by 2012 as the UK recovers from recession and inflation rockets".
  • MiserlyMartin
    MiserlyMartin Forumite Posts: 2,219
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    lisyloo wrote: »
    Wow you guys know how to live :rotfl:

    Seriously though, it's important to enjoy yourself now.
    I'm in my 40's and there are people not much older than me who have died of natural cuases.
    You do need to live a little, to enjoy yourself.
    No point leaving all your enjoyment till your 80's as you might be dead or not have enough good health to enjoy it.

    I think it's really important to have a balance between saving for the future, having contingency for a rainy day and enjoying yourself NOW.

    This should be printed out and pinned on peoples walls. I have seen too many friends die at young ages. How do you get the balance right though? Its a tough one.
  • Thrugelmir
    Thrugelmir Forumite Posts: 89,546
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    This should be printed out and pinned on peoples walls. I have seen too many friends die at young ages. How do you get the balance right though? Its a tough one.

    The best things in life are free.

    If if costs a lot of money you won't feel any happy by borrowing to own it.
  • space_rider
    space_rider Forumite Posts: 1,741 Forumite
    I was going to say the same thing, not many people on over a two year tracker.

    I took out a 5 year tracker day of the Lehman Bros collapse. 1.05 over BOE:j
  • aardvaak
    aardvaak Forumite Posts: 5,833
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    eslick wrote: »
    lets hope so :) cheap mortgage payments

    Lets hope not - I want to start getting a decent income from my investments.
  • Thrugelmir
    Thrugelmir Forumite Posts: 89,546
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    aardvaak wrote: »
    I want to start getting a decent income from my investments.

    Where have you been?:rolleyes:

    We're selling the stock market now. I've seen an 18% capital increase since the end of April alone and that excludes dividends and bond interest. When Lehmans crashed. Quality blue chip stocks crashed so some good profits have locked out since at over 30% gain.

    Time to start picking up auction property. Or lending money back to the banks. ;)
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