Yes, it should be possible to buy gilts with appropriate maturity dates from any decent broker. Where you can’t do it online, I’ve generally still been charged the online dealing fee.
However, you might also want to think about a short ladder of fixed interest savings - at the moment you can get about 2.5% on a five year bond Best Buy.
Got a credit card? use our Credit Card & Finance Calculators
Thanks to Rhyd6,eyeball08,Wondergirly,bofh,johnstevens77, for Donating to support the site
Near Retirement Investment Strategy for "Floor" Fund
-
- Lemon Half
- Posts: 8286
- Joined: November 4th, 2016, 11:20 am
- Has thanked: 919 times
- Been thanked: 4137 times
Re: Near Retirement Investment Strategy for "Floor" Fund
AleisterCrowley wrote:Why not? Any decent online broker will allow you to trade in Gilts
HSDL (Halifax) insist you do it by 'phone rather than online - or this was the case when I asked a year or two back.
From memory one gets stung £25 for 'phone trades
(must be an ETF that does a similar job???)
I must admit that I haven't tried, and the last time I dealt with Gilts was for my mother-in-law through the Post Office on the National Savings register, in 1993.
TJH
-
- Lemon Half
- Posts: 6065
- Joined: November 5th, 2016, 9:05 am
- Has thanked: 20 times
- Been thanked: 1416 times
Re: Near Retirement Investment Strategy for "Floor" Fund
Mercenary wrote:Many thanks. Is such a UK bond ladder possible for the retail investor to construct in the UK? If so, via whom and how?
In its simplest form you just buy individual bonds through whatever Broker will sell them to you. For a 10 year ladder, you choose 10 of them with maturity dates of each calendar year. It's just buying an individual bond 10 times.
Mostly they would require phone dealing rather than online.
-
- Lemon Pip
- Posts: 94
- Joined: December 21st, 2016, 12:32 pm
- Has thanked: 12 times
- Been thanked: 72 times
Re: Near Retirement Investment Strategy for "Floor" Fund
What difference is there between a 5yr gilt ladder and 5yr term accounts from b socs? I appreciate you have the gov as backer for gilts, but not many would exceed the protected levels in a b soc.
As always thanks in advance,
SB.
As always thanks in advance,
SB.
-
- Lemon Half
- Posts: 6065
- Joined: November 5th, 2016, 9:05 am
- Has thanked: 20 times
- Been thanked: 1416 times
Re: Near Retirement Investment Strategy for "Floor" Fund
Snowbadger wrote:What difference is there between a 5yr gilt ladder and 5yr term accounts from b socs?
If you take out a 5 year term account, isn't your money locked for 5 years? With a ladder you get a maturity every year for reinvestment. It also might be easier to get the cash from gilts if you don't have to give notice.
-
- Lemon Pip
- Posts: 94
- Joined: December 21st, 2016, 12:32 pm
- Has thanked: 12 times
- Been thanked: 72 times
Re: Near Retirement Investment Strategy for "Floor" Fund
Thanks Alaric,
I thought the idea of a ladder was you had 1,2,3,4,and 5yr bond for example, then each year you have a bond maturing which you then invest in another five year bond gaining access to the higher rates. After five years you are effectively holding all 5yr bonds with annual access if things go pear shaped.
So how do gilts improve on this model?
I thought the idea of a ladder was you had 1,2,3,4,and 5yr bond for example, then each year you have a bond maturing which you then invest in another five year bond gaining access to the higher rates. After five years you are effectively holding all 5yr bonds with annual access if things go pear shaped.
So how do gilts improve on this model?
-
- Lemon Pip
- Posts: 94
- Joined: December 21st, 2016, 12:32 pm
- Has thanked: 12 times
- Been thanked: 72 times
Re: Near Retirement Investment Strategy for "Floor" Fund
Cheers Inv35t,
I think I might need a few days to digest your answer. I've never really understood gilts, bonds, etc and hence I've used a ladder of term accounts. After the effort you have made I feel I owe it to you to get to grips and respond accordingly.
Many thanks,
SB
I think I might need a few days to digest your answer. I've never really understood gilts, bonds, etc and hence I've used a ladder of term accounts. After the effort you have made I feel I owe it to you to get to grips and respond accordingly.
Many thanks,
SB
Return to “Retirement Investing (inc FIRE)”
Who is online
Users browsing this forum: No registered users and 25 guests