My uncle has advised me to sell all my shares and reinvest in bonds/gilts

masonic

ValiantSon wrote: »

My point is that he has no qualifications and his advice should be treated with considerable caution.

This is also true if he does have qualifications.

mark55man

Some more people who may or may not have qualifications, which may or may not make them better at predicting stuff were talking about a similar issue on the lemonfool (which is where the old motley fool discussion boards ended up).

no better able to predict stuff, but perhaps better at the theory

https://www.lemonfool.co.uk/viewtopic.php?f=88&t=10301

ValiantSon

masonic wrote: »

This is also true if he does have qualifications.

Oh, I absolutely agree.

DairyQueen

... and I'm missing how zagfles suddenly morphed into 'Gig1968'.

Sorry to interrupt your entertaining exchange of views guys but could someone please explain how that happened, or is it just late and I've had one too many glasses of Aspalls?

ValiantSon

DairyQueen wrote: »

... and I'm missing how zagfles suddenly morphed into 'Gig1968'.

Sorry to interrupt your entertaining exchange of views guys but could someone please explain how that happened, or is it just late and I've had one too many glasses of Aspalls?

No, I think it is my gin that has done the harm! I had just been responding to Gig1968 on a different thread and still had his ID on my clipboard. I'll change it now.

DairyQueen

ValiantSon wrote: »

...I think it is my gin.

That's a relief. I can have another nightcap. :beer:

ValiantSon

DairyQueen wrote: »

That's a relief. I can have another nightcap. :beer:

It hasn't stopped me :rotfl:

[Deleted User]

I bought long dated gilts, 28 and 20 years to go and being 70, well I will be glad of the steady 4.25 and 4.75 income and the end price does not bother me at my age. Better than an annuity, at least there would be money back if I pop my clogs and wrt inflation, no problem, I will sort it

zagfles

ValiantSon wrote: »

Oh, I absolutely agree.

Hmm...maybe I should have been as concise as masonic :rotfl:

Malthusian

kittie wrote: »

I bought long dated gilts, 28 and 20 years to go and being 70, well I will be glad of the steady 4.25 and 4.75 income and the end price does not bother me at my age.

You will be disappointed when you get your first coupon and find they pay you only 3.1% and 2.7% steady income respectively. Every £1,000 you invested in a 2038 gilt will pay £30.10 each year, not £47.50, because the price is £153.19 to acquire gilts with a nominal value of £100. Same with the 2046 gilts with slightly different numbers.

Then when the gilts expire, for every £1,000 you invested in the gilts you will only get £653 back from the Government, again because you spent £153.19 to acquire gilts with a nominal value of £100. So the real yield of the investment is only 1.68% and 1.72% - for every £30.10 of that income you receive, £13.30 is just your own money being handed back to you. Although you say this part doesn't bother you due to your age. Except it will if you are one of the three in ten women aged 70 who will see their 90th birthday. (The odds are significantly higher than three in ten for you because you didn't mention any serious illnesses, and the fact that you are intelligent enough to manage your own investments also raises your life expectancy above the average.)

I'm surprised someone so experienced in share trading doesn't know the difference between a bond's coupon and its yield.