Stocks & Shares ISAs for 60+ yrs?

londoninvestor

OldBill wrote: »

what is left, basically, is a one-stop-shop off-the-shelf S&S ISA. But that, too, will contain bonds..

You could always open an ISA and hold in it nothing but VWRL or SWDA. Then there's no bond content to it. If the platform charges an annual or monthly fee, you might want to keep a small cash balance in there too.

OldBill

londoninvestor wrote: »

You could always open an ISA and hold in it nothing but VWRL or SWDA. Then there's no bond content to it. If the platform charges an annual or monthly fee, you might want to keep a small cash balance in there too.

Yes, that thought had occurred to me. But the advice re bonds is contradictory. A lot of knowledgeable people are saying they're a waste of time; others (Kroijer included) are saying buy them:
https://www.youtube.com/watch?v=a2YKzwQ05hc

This is an excellent interview:
https://www.youtube.com/watch?v=WsbDE7RaTtU
- @ 20:56 - buy bonds
- @ 28:24 - he argues against not buying them.

"With the large growth of index funds and exchange traded funds (ETF) investing over the past decades, the abundance of different product offerings leave even professional investors confused; it's no wonder that many investors say 'for get it' and revert to doing what they have always done."
- Investing Demystified (sec ed), p.138.

Chapter 12 of the above book is getting down to the nitty-gritty of what actually to shell out on.

Aidanmc

Lars states in the beginning of Investing Demystified series 4, that the low risk asset holding i.e. bonds,
is an alternative to cash.

masonic

OldBill wrote: »

Yes, that thought had occurred to me. But the advice re bonds is contradictory. A lot of knowledgeable people are saying they're a waste of time; others (Kroijer included) are saying buy them:
https://www.youtube.com/watch?v=a2YKzwQ05hc

This is an excellent interview:
https://www.youtube.com/watch?v=WsbDE7RaTtU
- @ 20:56 - buy bonds
- @ 28:24 - he argues against not buying them.

"With the large growth of index funds and exchange traded funds (ETF) investing over the past decades, the abundance of different product offerings leave even professional investors confused; it's no wonder that many investors say 'for get it' and revert to doing what they have always done."
- Investing Demystified (sec ed), p.138.

Chapter 12 of the above book is getting down to the nitty-gritty of what actually to shell out on.

It's a very unusual period for bonds, following their prices being pumped up following the global financial crisis and QE.

Bonds are worth holding when they yield the same or more than can be earned in a risk-free savings account, or when your money is already locked in a S&S ISA or pension. Otherwise, not so much.

londoninvestor

OldBill wrote: »

Yes, that thought had occurred to me. But the advice re bonds is contradictory. A lot of knowledgeable people are saying they're a waste of time; others (Kroijer included) are saying buy them:
https://www.youtube.com/watch?v=a2YKzwQ05hc

This is an excellent interview:
https://www.youtube.com/watch?v=WsbDE7RaTtU
- @ 20:56 - buy bonds
- @ 28:24 - he argues against not buying them.

"With the large growth of index funds and exchange traded funds (ETF) investing over the past decades, the abundance of different product offerings leave even professional investors confused; it's no wonder that many investors say 'for get it' and revert to doing what they have always done."
- Investing Demystified (sec ed), p.138.

Chapter 12 of the above book is getting down to the nitty-gritty of what actually to shell out on.

Just to note that while Lars ultimately comes down on the side of government bonds for UK investors, he isn't too negative about cash deposits:
https://monevator.com/what-is-the-minimal-risk-asset/

Lars_article&#64 wrote: »

Well, these days you may decide it is better to keep your minimal risk asset as cash instead of government bonds.

There are a couple of reasons for this. For one thing, after years of easing by central banks, government bonds yields are currently very low. Depending on which country you’re based in, you may well be able to find cash savings accounts that pay a higher interest rate than you’ll get on similar government bonds.

(Worth reading the full article to see what he says about the balance of pros and cons.)

For myself, in my non-pension portfolio I'm following roughly the same idea as @masonic is with cash deposits; whereas in my SIPP I don't have access to attractive deposit rates so I have a bond fund.