Interest rates could start to rise soon - Andrew Sentance

HAMISH_MCTAVISH

kabayiri wrote: »

I suspect any investment other than property threatens your view of the world.

Don't be daft.

Everyone should diversify their investments.

But even Warren Buffett has dismissed gold as a "valueless asset".

kabayiri

HAMISH_MCTAVISH wrote: »

...
But even Warren Buffett has dismissed gold as a "valueless asset".

Don't be daft (to use your words)

If people ascribe value to something, then it has value. A Monet or Picasso is just canvas and paint at the end of the day.

Gold does appear quite a lot in jewellery in case you hadn't noticed. Of course it has a value.

DervProf

HAMISH_MCTAVISH wrote: »

But even Warren Buffett has dismissed gold as a "valueless asset".

Not to mention H. McTavish.

DervProf

kabayiri wrote: »

Gold does appear quite a lot in jewellery in case you hadn't noticed. Of course it has a value.

There also appears to be a fair bit of it in electronic items, such as computers.

I'm not going to take Hamish's advice and give away my gold, I think it has got a value.

IveSeenTheLight

DervProf wrote: »

I'm not going to take Hamish's advice and give away my gold, I think it has got a value.

Quite literally it could be like pulling teeth to make you give up your assetts

chucknorris

FTBFun wrote: »

I would think the best approach is to have a balanced investment strategy where the risk is spread out.

Unfortunately too many people here go for the "invest all your money in precious metals/property/magic pixie dust" approach.

I have just been looking at my portfolio this morning, excluding half the value of my house (which is paid for) it curently looks like:

63.8% property
24% cash
6.2% shares
6.0% pension

I may retire in 4 years and without doing anything too dramatic it would change to about:

54.1% property
20.9% cash
8.2% shares
16.8% pension

Given that the housing market dictates when I sell up, it looks to me that I am cash heavy and light of shares (or bonds). I may also look at ground rent investments again (despite previously dismissing them).

Generali

chucknorris wrote: »

I have just been looking at my portfolio this morning, excluding half the value of my house (which is paid for) it curently looks like:

63.8% property
24% cash
6.2% shares
6.0% pension

I may retire in 4 years and without doing anything too dramatic it would change to about:

54.1% property
20.9% cash
8.2% shares
16.8% pension

Given that the housing market dictates when I sell up, it looks to me that I am cash heavy and light of shares (or bonds). I may also look at ground rent investments again (despite previously dismissing them).

Too heavy property, too light bonds IMHO if you're 4 years from retirement.

chucknorris

Generali wrote: »

Too heavy property, too light bonds IMHO if you're 4 years from retirement.

I'll be 58 in 4 years time so that's a flexible retirement date, it may change.

I agree about the bonds, but it would be madness to get out of property at the moment for 2 reasons:

1. All my mortgages are low margin trackers (average rate 1.1%).

2. Given that I am already in the market I am better off selling when the market is in a much better position, probably in about 10 years from now.

I am thinking more of individual corporate bonds, but need to understand more about the fees and spreads of them to evaluate if I would save more compared to bond funds, what do you think about this? I would tend to go for lower risk (lower yield) bonds.

Generali

chucknorris wrote: »

I'll be 58 in 4 years time so that's a flexible retirement date, it may change.

I agree about the bonds, but it would be madness to get out of property at the moment for 2 reasons:

1. All my mortgages are low margin trackers (average rate 1.1%).

2. Given that I am already in the market I am better off selling when the market is in a much better position, probably in about 10 years from now.

I am thinking more of individual corporate bonds, but need to understand more about the fees and spreads of them to evaluate if I would save more compared to bond funds, what do you think about this? I would tend to go for lower risk (lower yield) bonds.

Both excellent reasons to stay in.

Generally I would touch a bond fund except Pimco perhaps. Individual corporate names are a good idea but be aware of how subordinated you are, i.e. where you come in the pecking order if the company goes bust.

Preference shares can be a money-spinner too if you want yield.

CRASH_BANG_WALLOP

HAPPY_HOMEOWNER wrote: »

Can't see interest rates rising, possibly for a generation at least, as most of our inflation has been imported from rising commodity and electrical prices. No need to panic if you are a secure homeowner or prospective FTB as the powers that be will always protect the majorities interests. In this case the home owners. I would certainly not want to be in rented paying off someone else mortgage.

shut it ree/sibley/mr pinkpants