TG30 - 0 3/8% Treasury Gilt 2030

efunc

Interesting discussion, and gives me some avenues for further investigation. TBH I'm not entirely certain which products I'll ultimately invest in. I have quite a sizable amount of cash in savings, SIPPs and ISAs and was looking at a relatively short duration home in Money Market, gilts, ILG and bonds, for anything from 6 months to 24 months. Much of this will then be invested back into equities (yes, tut tut, I'm timing the market!), but I'm also likely to keep a proportion invested for a longer term. I'll study the yields and then decide. Lot's of helpful info here to consider though.

DRS1

If you are looking to build a ladder of gilts there are tools you can play with. One is on the giltsyield site mentioned above and another is here

Gilt Ladder Builder · Streamlit

They may give you things to consider. Personally I don't like the fact that they can have you buying gilts with clean prices over 100. But that may have something to do with me not setting the tax rate above 0%.

Worried_fool

Does this kind of investment make sense within an ISA?

I have just sold a lot of equities because I realised I was invested above my risk tolerance, and am planning my next move…

efunc

https://forums.moneysavingexpert.com/discussion/comment/82040127#Comment_82040127

I'm new to these vehicles myself, but my own approach is to reserve my ISAs and SIPPs to high growth equities and other bonds and the like that are subject to tax. If I choose a gilt, like the TG30, with a small Coupon proportion relative to its overall yield I would be happy to have it in my GIA because it's CGT exempt. It's just the coupon portion that's subject to income tax, but amongst all my other investments, including higher interest paying cash ISAs, that should be relatively modest

efunc

Thanks for that. I've heard the term used in discussion but can't pretend to know what it is, so honestly I can't say whether I want to build a ladder or not. However thanks for the link. I will go away and investigate!

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82040127#Comment_82040127

There is no reason you wouldn't invest in gilts in an ISA (or a SIPP). But you wouldn't be investing in the same sort of gilts in an ISA as you would outside it. Personally I would keep any high coupon gilts in an ISA and low coupon ones outside it.