Smarter Investing: Simpler Decisions for Better Results (Financial Times Series)

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Hale’s response is – like a number of American commentators – to go short-dated and to consider diversifying your bond holdings. Is % allocation figure generated after steps 1. and 2. greater or less than 10x the portfolio bonds’ weighted average yield to maturity? Unless saving for something specific, such as school fees, house deposit etc, I suspect most people start investing with a vague notion that it’s better over the long term than saving – which hardly amounts to a clear objective. I guess this may be why various ‘glidepath’ or ‘life-styling’ features are common in pension funds. Andrew Smithers states that chance of loss (US data again) reduces to <5% at 14 years which is very close to 1% at 20 yr.

Investment portfolio examples: asset allocation models for

I’m going to follow up with a post on some of the key developments in the 3rd edition. The fundamentals are the same (this is passive investing afterall) but it’s a good refresher.The main reason to read the 1st edition is for several lost passages on the behaviour of UK bonds between 1900 and 2004.

Smarter Investing By Tim Hale | Used | 9780273708001 - Wob Smarter Investing By Tim Hale | Used | 9780273708001 - Wob

The level of detail. Enough to help you understand why this is the way ahead. Not so much that it’ll overwhelm a diligent newbie Sadly, this effort is downplayed in the 3rd edition of Smarter Investing in comparison to its predecessors.

After a recent rejig my SIPP is around 75% equities, 20% index-linked gilt fund and 5% gold (gold will tank now, just watch 😉 Valiant — As @Tetromino says there’s a new edition out in a couple of weeks (see: https://amzn.to/3YfLsPu) and @TA has already had a look. Meaning, if the current portfolio is looking too Dad’s Army to deliver the target income objective (without taking on more risk of failure).

Smarter Investing - Pearson Smarter Investing - Pearson

and to keep your costs down (( Tim doesn’t mention being tax-efficient, which can be just as important ))I’ve actually use this instead of a bond allocation now (from beginning of 2022, so worked out well so far). Perhaps monevator could be viewed as the missing ‘investments’ section of MSE. They only deal with cash and pay lip-service toward peer-to-peer. I think the fourth edition is notably stronger than the third. It contains more illuminating examples, pithy quotes from investing greats*, and expanded explanations of key points.