It's time to start digging up those Squirrelled Nuts!!!!

QrizB

Sea_Shell said:

I don't expect recommendations, but can you mention the sort of thing you mean?
What should I search for?
Are they available on platforms like other funds?

Despite Hoenir's cautions, they are available to hold in SIPPs and SSISAs.

See for example the table here:
https://www.sharecast.com/gilt/index_linked

Here is an example of an index-linked gilt on the II site:

https://www.ii.co.uk/bonds/1-index-linked-treasury-gilt-2032/LSE:T32

Back in 2022 I bought a few short-dated gilts (not index-linked ones) in my II SSISA and held them to maturity. It passed the Ronseal test.
https://forums.moneysavingexpert.com/discussion/comment/80279363/#Comment_80279363

michaels

Sea_Shell said:

eastcorkram said:

Sea_Shell said:

Sea_Shell said:

Another music question 😉

Anyone here listen to Simon Mayo on GHR, especially on Fridays?

What is the music playing in the background, just after he plays the Muppet Song? (which is about 5.10pm I think)

We hear it every week and can't pin it down.

It's not the tequila song or the Fleetwood Mac one.

Cheers in advance fellow squirrellers.

No Mayo listeners then 😉

Sorry, I did try. I even went on the app, and listened to that part of the show. But if you're talking about the music he talks over, straight after the Muppets, I just don't know what that is. 
It does sound vaguely familiar, but I can't place it. 

Yeah, that's the bit.   We can't place it either, but it sounds familiar as you say.

I think there is an app called shazam or even just the google speak to search option that should ID it for you.

Just tried, found a muppet list on youtube and google song search says Garden Party by Mezzoforte

Apologies if I have ruined it for anyone.

michaels

Hoenir said:

Sea_Shell said:

michaels said:

When markets appear 'high' I sometimes feel like I have already 'won' and should therefore look at derisking which for me means inflation linked gilts.  Yes you are then giving up an average equity return of a few percent above inflation but you are locking in a real terms acceptable income.

I wonder if there is any modelling of this sort of approach?

I know nothing about these.

I don't expect recommendations, but can you mention the sort of thing you mean?

What should I search for?

Are they available on platforms like other funds?

Better suited to institutional investors such as pension funds. Where known liabilities are financed with corresponding assets. Never designed as an investment for retail investors per se. 

Alternatively this useful app works out how for example you could use some of your DB pot to buy a set of assets that would mimic the state pension for the period between retirement and state pension age, removing all market and inflation risk from that part of your retirement income. Compare this to setting aside £10.5k times number of years until state pension age as 'cash' (perhaps ultrashort money market funds) within your sipp where you are still liable to inflation risk. https://lategenxer.streamlit.app/Gilt_Ladder

For example if I say I want 10.5k a for 12 years starting in December 2025 with a 2% return on uninvested cash (because the bond maturity and coupons will not coincide exactly with my annual draws) it says I need to purchase 123k of index linked bonds, as follows (apologies for the formatting):

Instrument	TIDM	Clean Price	Dirty Price	GRY	Quantity	Cost
0.125% IL 2024-03-22	TR24	99.63	155.78	2.54%	0.00	0.00
2.500% IL 2024-07-17	T24I	382.66	383.96	2.15%	22.78	8,747.22
0.125% IL 2026-03-22	TR26	98.64	144.79	0.59%	65.10	9,426.09
1.250% IL 2027-11-22	T27	103.50	202.75	0.18%	48.64	9,862.48
0.125% IL 2028-08-10	T28	99.36	134.81	0.17%	71.06	9,579.47
0.125% IL 2029-03-22	T29	98.95	157.98	0.25%	60.75	9,597.59
4.125% IL 2030-07-22	T30I	341.81	343.20	0.30%	34.97	12,000.77
0.125% IL 2031-08-10	TR31	99.16	127.96	0.18%	77.98	9,978.53
1.250% IL 2032-11-22	T32	107.62	188.40	0.31%	57.59	10,849.29
0.750% IL 2033-11-22	T33	102.78	104.83	0.41%	99.96	10,478.13
0.750% IL 2034-03-22	TRTQ	102.12	167.15	0.49%	63.47	10,608.41
2.000% IL 2035-01-26	T2IL	245.78	246.26	0.60%	48.88	12,036.62
0.125% IL 2036-11-22	TG36	93.43	136.18	0.63%	72.31	9,846.96
Cash						0.00
Total						123,011.58

 

Hoenir

QrizB said:

Sea_Shell said:

I don't expect recommendations, but can you mention the sort of thing you mean?
What should I search for?
Are they available on platforms like other funds?

Despite Hoenir's cautions, they are available to hold in SIPPs and SSISAs.

See for example the table here:
https://www.sharecast.com/gilt/index_linked

Here is an example of an index-linked gilt on the II site:

https://www.ii.co.uk/bonds/1-index-linked-treasury-gilt-2032/LSE:T32

Back in 2022 I bought a few short-dated gilts (not index-linked ones) in my II SSISA and held them to maturity. It passed the Ronseal test.
https://forums.moneysavingexpert.com/discussion/comment/80279363/#Comment_80279363

Very different instruments.  Majority of investors struggle to get their heads around ILG's. Far from straightforward with unknown redemption values. Also the coupon's are extremely low. Not making them suitable for those looking to derive an income stream.

cfw1994

michaels said:

Sea_Shell said:

eastcorkram said:

Sea_Shell said:

Sea_Shell said:

Another music question 😉

Anyone here listen to Simon Mayo on GHR, especially on Fridays?

What is the music playing in the background, just after he plays the Muppet Song? (which is about 5.10pm I think)

We hear it every week and can't pin it down.

It's not the tequila song or the Fleetwood Mac one.

Cheers in advance fellow squirrellers.

No Mayo listeners then 😉

Sorry, I did try. I even went on the app, and listened to that part of the show. But if you're talking about the music he talks over, straight after the Muppets, I just don't know what that is. 
It does sound vaguely familiar, but I can't place it. 

Yeah, that's the bit.   We can't place it either, but it sounds familiar as you say.

I think there is an app called shazam or even just the google speak to search option that should ID it for you.

Just tried, found a muppet list on youtube and google song search says Garden Party by Mezzoforte

Apologies if I have ruined it for anyone.

I swear we spend half our lives Shazamming songs to check what they are!
Great app, & available as a shortcut (at least, on iPhone, which is all I know!).

eastcorkram

michaels said:

Sea_Shell said:

eastcorkram said:

Sea_Shell said:

Sea_Shell said:

Another music question 😉

Anyone here listen to Simon Mayo on GHR, especially on Fridays?

What is the music playing in the background, just after he plays the Muppet Song? (which is about 5.10pm I think)

We hear it every week and can't pin it down.

It's not the tequila song or the Fleetwood Mac one.

Cheers in advance fellow squirrellers.

No Mayo listeners then 😉

Sorry, I did try. I even went on the app, and listened to that part of the show. But if you're talking about the music he talks over, straight after the Muppets, I just don't know what that is. 
It does sound vaguely familiar, but I can't place it. 

Yeah, that's the bit.   We can't place it either, but it sounds familiar as you say.

I think there is an app called shazam or even just the google speak to search option that should ID it for you.

Just tried, found a muppet list on youtube and google song search says Garden Party by Mezzoforte

Apologies if I have ruined it for anyone.

Yes, that's definitely it! 

Sea_Shell

michaels said:

Sea_Shell said:

eastcorkram said:

Sea_Shell said:

Sea_Shell said:

Another music question 😉

Anyone here listen to Simon Mayo on GHR, especially on Fridays?

What is the music playing in the background, just after he plays the Muppet Song? (which is about 5.10pm I think)

We hear it every week and can't pin it down.

It's not the tequila song or the Fleetwood Mac one.

Cheers in advance fellow squirrellers.

No Mayo listeners then 😉

Sorry, I did try. I even went on the app, and listened to that part of the show. But if you're talking about the music he talks over, straight after the Muppets, I just don't know what that is. 
It does sound vaguely familiar, but I can't place it. 

Yeah, that's the bit.   We can't place it either, but it sounds familiar as you say.

I think there is an app called shazam or even just the google speak to search option that should ID it for you.

Just tried, found a muppet list on youtube and google song search says Garden Party by Mezzoforte

Apologies if I have ruined it for anyone.

Thanks.    That's the one.    

Got to #17 in 1983

Must be where I know it from, as I can't see on Wiki that its been used in a film or anything.

Sea_Shell

As for those Gilts...I think i'll pass, before my brain explodes.   But thanks for trying to explain it.

I'll stick to fixed term cash and the investments we have.

OldScientist

Hoenir said:

QrizB said:

Sea_Shell said:

I don't expect recommendations, but can you mention the sort of thing you mean?
What should I search for?
Are they available on platforms like other funds?

Despite Hoenir's cautions, they are available to hold in SIPPs and SSISAs.

See for example the table here:
https://www.sharecast.com/gilt/index_linked

Here is an example of an index-linked gilt on the II site:

https://www.ii.co.uk/bonds/1-index-linked-treasury-gilt-2032/LSE:T32

Back in 2022 I bought a few short-dated gilts (not index-linked ones) in my II SSISA and held them to maturity. It passed the Ronseal test.
https://forums.moneysavingexpert.com/discussion/comment/80279363/#Comment_80279363

Very different instruments.  Majority of investors struggle to get their heads around ILG's. Far from straightforward with unknown redemption values. Also the coupon's are extremely low. Not making them suitable for those looking to derive an income stream.

A ladder of maturing inflation linked bonds (see @michaels post above - I hadn't seen that tool before) provides a known real (inflation adjusted) income stream. I would agree, this means that the nominal amounts are unknown and dependent on inflation. Where the gilts are held outside of tax sheltered environments (e.g., a GIA), the lack of capital gains tax on gilts actually makes the generally low coupons an advantage (since the latter are taxed as interest). Historically, gilts (including inflation linked ones) were available to buy over the counter at the post office (and in days gone by, the population were exhorted to buy War bonds and Victory Bonds), so definitely marketed at retail investors.The Post Office route for buying individual gilts was terminated in 1996 or thereabouts.

On the other hand, a ladder of nominal gilts (or fixed rate savings accounts out to about 7 years at most) provides a known nominal income stream, but one where the real amounts (i.e., purchasing power) are dependent on inflation.

Holding a single gilt with a view to spending the coupons is a simpler approach and, in that case, a nominal bond with a higher coupon rate will probably make more sense (with some caveats).

Anyway, I'll leave it there, since I don't want to drag this excellent thread too far off topic!

michaels

Sea_Shell said:

As for those Gilts...I think i'll pass, before my brain explodes.   But thanks for trying to explain it.

I'll stick to fixed term cash and the investments we have.

Does thinking of it like 'fixed term cash' but with inflation protection built in help?

EG £1000 in a 2 year fixed rate savings account paying 5% will give £1102.50 in 2 years time.

If inflation has also been 5% then in real terms you get the £1000 back, it can buy the same stuff as it could when you made the deposit.  If inflation is lower then 5% you have more than £1000 in real terms and if inflation has been more than 5% you have less - so you are running a risk that your money won't go as far as you had expected (of course it may also go further if inflation is lower than anticipated)

The index linked bond is similar that you put £1000 in but what you get back is not a fixed money amount but is a fixed real value regardless of inflation, so if inflation unexpectedly hits 10% a year for the two year period with the fixed rate savings account the money you get will be worth about 10% less in real terms than when you deposited (and buy 10% less stuff) whereas with the index linked savings they will still be worth the same and have the same buying power.  So basically it is just like fixed rate savings but without the inflation risk.