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Re: Does it make sense to hedge more as you approach retirement?

Posted: May 5th, 2023, 4:40 am
by 1nvest
GoSeigen wrote:
scrumpyjack wrote:Yes, and the reference to annual expenditure of £20 is a sobering reminder of what inflation has been suffered in this country!

And what do you think is the problem in our country that means we have had inflation but other comparable countries haven't?

Rhetorical question -- everyone here sober or otherwise knows that inflation is not a "this country" thing.


GS

Relatively more inflation (currency devaluation)

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Re: Does it make sense to hedge more as you approach retirement?

Posted: May 13th, 2023, 6:12 am
by hokkaidobear
yes, for liquidity purposes but the counterbalancing to equities can be a bit longer duration

Re: Does it make sense to hedge more as you approach retirement?

Posted: May 13th, 2023, 6:28 am
by Urbandreamer
hokkaidobear wrote:yes, for liquidity purposes but the counterbalancing to equities can be a bit longer duration


Most equities are really quite liquid. Sell some shares in Shell or Unilever, the trade takes 3 working days and bank transfer up to 5. Quite a bit quicker than a 90 day savings account.

Possibly liquidity is not what you meant.

A normal argument is about the volatility of equity prices, though it doesn't tie in to the thread question.

The OP was asking about hedging currencies. The likes of Shell and Unilever make much of their money in foreign currency, though the OP is investing in a world tracker that will include vary many US based companies.