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

Pat38493

michaels said:

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

 

Wow!  Maybe that should have its own thread as I've seen quite a few posts asking about this topic of gilt laddres and the explanations in text are always hard to follow.  If this is a tool that can automate which ones to buy (and it is kept up to date), it could be a game changer in terms of whether I even consider it.

LHW99

Now if Mr H would just bring back IL savings certificates......

Sea_Shell

That "DOH!!" moment when you think Shawbrook have diddled you out of £5 interest on a maturing 1 yr fixed account, when in fact, you realise that you didn't fund the account in one go and made the final bulk deposit within the funding window, some 12 days after opening.   

I was scratching my head there for a while.   

  

Sea_Shell

New personal best Scrabble score - 250

Helped by "quiz" and "zits" 

😎

westv

Scrabble and concerns about £5? You're living life on the edge Sea_Shell !

   

Sea_Shell

westv said:

Scrabble and concerns about £5? You're living life on the edge Sea_Shell !

   

Yeah, it's all rock and roll here.😎

This morning has been a master bedroom deep clean.  Furniture moved, mattress turned, everything wiped down, hoovered and dusted.
😇

Sipowicz

You've made your bed, now lie in it!

MarzipanCrumble

Watty1 said:

Sadly it works the other way too.  I see my partners mother threatening to re-write her will every 6 months often telling him he is a dreadful son.  Honestly i think he is an awesome son, he pops in to see her a couple of times every week, calls her almost daily on his way home from work, visits every other week for lunch on his day off, drops everything to help her out and yet for her it is not enough.  We have discussed it and he has no expectation that she will leave him anything because that is what she keeps threatening.

She recently told him she had decided to leave him the house and that would have to be enough.  Honestly my response would have been that that would hardly encourage me to choose the best care home as the house will likely be taken to pay her care, but, he just smiles and says she can be grumpy because she is old.

At a lunch a couple of years ago she told me she was going to leave a lot to his ex because she was so nice and could be trusted to always look after his disabled sister who lives in sheltered accommodation.   I simply said all the talk of leaving things was rather manipulative in my opinion and one couldn't place conditions like that on anyone as who knows what might happen, adding the ex might up and move to another part of the world.

If she were my mother there would be a firm talking to along the lines of I don't give a **** what you leave but try to be nicer when I visit and remember you could pay people to do the jobs you expect me to do for free!   I would probably add remember I will select your care home simply because I'm exasperated with the old lady and her ways but she is not my mother so I smile and listen and try very hard to keep quiet.

Lol - my SIL who was seen as 'wealthy' (and was) and was born just before WW2 from a poor coal mining family in South Wales valleys, threatened her immediate relatives with changing her will constantly. 

Her brother (my OH) echoed this so that we, in the end, all danced around her.  When OH died about 9 years before her death, both my children got quite cynical (I was always cynical).

I got nothing - 1 son who had taken her out for meals for a number of years but then tailed off got 100k, other son who had ignored her and sent 'boring' presents, got 25k.  I suspect the school friend who had struck up a collaborative friendship in her later life got most of her wealth.

I also had the family myth when a child of the 'aunt' who changed her will nearly every quarter depending on how she was treated......

Sea_Shell

End of month / quarter / tax year figures looking very healthy, thanks to the recent equity rally.

🤑

enthusiasticsaver

Yes the equities seem to have picked up don't they? Not that we really look too much at the value of the portfolio as we drawdown the same amount each month anyway. It will run out when we are 103 at the moment