zlb
Member of DD Central
Posts: 1,411
Likes: 331
|
Post by zlb on Jun 3, 2020 9:24:30 GMT
I can't afford to have most of my money in the stock market with its unknown volatility. I'm watching the price of housing for example. Has anyone used the flexible allowance of an ISA to take the money out and put it into other savings accounts with better rates and then put it back into the ISA before tax year end?
Alternatively, any suggestions on how I can read up on (safe) bond funds - are they a suitable alternative to cash? Thanks.
|
|
|
Post by failedtheturingtest on Jun 7, 2020 10:54:20 GMT
I'm also in the process of saving up cash that I want to protect against volatility. In my case it's because I am approaching the point where I will be refinancing my mortgage when my current fixed-rate deal ends, so I have been building up a large chunk of cash to reduce my loan-to-value ratio. Anyway, these are the places where I am storing that money, where capital preservation is my top priority: - Global hedged bond funds / ETFs: I use Vanguard Global Bond Index Hedged Accumulation fund, which has been quite stable, its price this year has ranged between £104 and £98 which is very low volatility compared with stocks so far this year
- Bank fixed-term bonds: at the moment the best you can get is 1.2% for one year, or slightly more for longer periods
- NS&I Premium bonds: the capital is guaranteed, the rate of return is not guaranteed but you can expect something in the neighbourhood of 1% depending on how much you have and how long you keep it there
- Bank savings accounts: there are still accounts paying a hair over 1%
I think monevator.com is a good source of knowledge for learning about investing. I'd suggest reading:
|
|
mrdc
Member of DD Central
Posts: 73
Likes: 33
|
Post by mrdc on Jun 8, 2020 9:19:51 GMT
I can't afford to have most of my money in the stock market with its unknown volatility. I'm watching the price of housing for example. Has anyone used the flexible allowance of an ISA to take the money out and put it into other savings accounts with better rates and then put it back into the ISA before tax year end? Alternatively, any suggestions on how I can read up on (safe) bond funds - are they a suitable alternative to cash? Thanks. I have also been looking for (safe) bond fund. The best i have found so far (not purchased yet) is Ishares ticker code IBTG. It is the most cash like bond fund. It currently yields about 2.18%. It is 1-3 year term us treasury so not to much interest rate risk and good security. Also fairly large nearly 8 billion and good liquidity.It seems to range from £4,93 ex div to £5.03 next div over 6 months so if you sell mid div payments you still receive a return. Seems a good place to park cash. PS It is hedged to gbp if your worried about fx risk.
|
|
zlb
Member of DD Central
Posts: 1,411
Likes: 331
|
Post by zlb on Jun 9, 2020 18:17:33 GMT
I can't afford to have most of my money in the stock market with its unknown volatility. I'm watching the price of housing for example. Has anyone used the flexible allowance of an ISA to take the money out and put it into other savings accounts with better rates and then put it back into the ISA before tax year end? Alternatively, any suggestions on how I can read up on (safe) bond funds - are they a suitable alternative to cash? Thanks. I have also been looking for (safe) bond fund. The best i have found so far (not purchased yet) is Ishares ticker code IBTG. It is the most cash like bond fund. It currently yields about 2.18%. It is 1-3 year term us treasury so not to much interest rate risk and good security. Also fairly large nearly 8 billion and good liquidity.It seems to range from £4,93 ex div to £5.03 next div over 6 months so if you sell mid div payments you still receive a return. Seems a good place to park cash. PS It is hedged to gbp if your worried about fx risk. thank you. Much appreciated, it's a good place to start.
|
|