macq
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Post by macq on Dec 1, 2019 21:30:11 GMT
I've not really thought about how possible this is, or not, with WA, but I guess for those that haven't come across the concept before it might be interesting.
Here's an explanation from Fidelity. They have a tool to help.
(I see WA now offer API's, so it might be possible to build an external tool)
Anyway:
And a more detailed explanation from Investopedia:
* there's an interesting insert on the fidelity page "How many issuers might you need to manage the risk of default?" I'm at 49. The bond ladder was popular for many years and you find many on places like MSE etc now doing the same with fixed rate bonds from banks/BS aiming to have up to 5 years in the ladder and rolling the 1 into 5 every year
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macq
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Post by macq on Dec 2, 2019 18:30:45 GMT
The bond ladder was popular for many years and you find many on places like MSE etc now doing the same with fixed rate bonds from banks/BS aiming to have up to 5 years in the ladder and rolling the 1 into 5 every year Hi macq I'm guessing MSE= Money Saving Expert. I haven't spent much time there myself, but I guess you could you use fixed rate products from Banks and Building Societies in the same way. I've been aware of the strategy for a long time, but as private investors who doesn't fall into the family office category it's only been a theorectical thing! I wouldn't have thought about fixed rate products from the banks if I'm honest. I bought bonds on WA on the basis of the merit of the company, as they became available, otherwise in quite an adhoc way. I was aware of the benefit of diversification. That I think is as important as performance in the eary stages of creating an account. It's gives a better learning experience, besides the obvious. You don't get wiped out in the early days!
My experience of these things is that I often do them before my partner. The outcome is she has a better portfolio than me. LOL For those starting on the process it might be just a lesson shared. Diversify and consider "laddering" to have monthly income and manage future rate risks. That's of course if you want to manage your own activity. I think that's wothwhile. On the basis that if this is an emerging asset class, once it's fully mainstream, you might have a considerble % of your portfolio in it in the future. A very real additional to the recognisable main brokers. I can easily see myself having as much with WA as I would with a broker in a few years time.
that's a yes to money saving whatnot  i tend to look at the pension board but the savings board is ok if a bit on the Vanguard/VLS are gods side.The cash ladder has been mentioned by a few on there over the last few years.I started mine after seeing it on a web site but can't remember which One but could have been an American site as they call them CD ladders and seems more common by doing a search
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macq
Member of DD Central
Posts: 1,924
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Post by macq on Dec 2, 2019 20:29:16 GMT
Are you also on Lemon Fool macq ?
There's plenty of interesting discussions over there. I'm not a HYP'er myself. Which is almost a religion for some. But, I do follow a number of threads and find the FIRE (Financila Independance, Retire Early) chat interesting. I don't participate much, so you could say it's more of a fireside chat for me. 
Yes, I see much more dicussion on US sites about the concept of "ladders", but I think the use of fixed interest bonds is more usual over there anyway.
We appear more fixed on the idea of equity. I'm certainly not in a rush to buy Gilts any time soon!
Exciting times we live in. There's a cornucopia of products to select from!!
Myself I run a portfolio of equities, fixed income, near cash and start-ups. Not all of those are relevant to the Fool, but I do find myself popping in every day and learning something everytime I do. Even if it's a question on SEIS/EIS.
I think a number of folk, me included, migrated there from the Interactive Investors and Fixed Income Investors chat web sites.
do look at Lemon Once in a Blue moon and MSE & Monevator,diy investor and IT investor couple of times a month for interest rather then advice but tend to be where i want to be with investments so not that much.
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i tend to look at the pension board but the savings board is ok if a bit on the Vanguard/VLS are gods side.The cash ladder has been mentioned by a few on there over the last few years.I started mine after seeing it on a web site but can't remember which One but could have been an American site as they call them CD ladders and seems more common by doing a search