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I just got an email from Post Office Savings saying that they will be reducing the rate on our online saver from 1.3% to 0.9% from September. Fortunately, the majority of the money we have with them is in a fixed rate bond which has another six months to go at 1.7% but the trend everywhere is definitely down. So much for the promised rate rises if we voted for Brexit.

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I just got an email from Post Office Savings saying that they will be reducing the rate on our online saver from 1.3% to 0.9% from September. Fortunately, the majority of the money we have with them is in a fixed rate bond which has another six months to go at 1.7% but the trend everywhere is definitely down. So much for the promised rate rises if we voted for Brexit.

I think they were threats Bruce.

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It's absolutely the wrong time to do this.

(and if you believe or disbelieve that on the basis of some geezer on HPC, you might sleep better investing in something lower-risk).

Ah well. Half of it on booze, coke and prozzies it is then. The rest I'll waste.

Edited by RentingForever
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Does anyone on HPC actually use Cash ISA's? If yes, would genuinely love to know why as I'm probably missing something given their popularity.

Edit: Pose the correct question.

I stopped putting any money into cash ISAs some years ago but still kept moving what I had into short-ish term fixed rates, just in case I needed the cash for a disposit. Last fixed rate (2.3%) came to an end last month and I've been thinking about moving it in with my S&S ISA since then. As someone noted, holding cash is still a risk and over the longer term I think it will be hard to beat the extra income from shares. I like to stock pick, so I'll be drip feeding into areas that seem cheap to me over the next year or so.

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FWIW, my current breakdown is something like:

68% cash (ISA, Premium Bonds, Savings, etc.)

25% Gold/Silver (Mostly Gold)
5% stocks and shares (Mostly NYSE)
2% physical assets
I will probably convert my Cash ISA into a stocks and shares ISA and probably also buy more stocks and shares in general, but I do fear that right now might be a bad time (stocks are at record highs, the pound is low and uncertainty is high).

At a top level I'm currently:

- 13.7% cash (home purchase money)

- 24.4% bonds (index linked savings certificates for home purchase, corporate bonds, index linked gilts)

- 9.8% property (European and UK Commercial/Industrial)

- 4.9% commodities (gold)

- 12.4% international equity (US, Europe, Japan)

- 5.4% emerging market equity

- 9.9% Aus equity (a mistake in hindsight)

- 19.5% UK Equity

Up 15.9% year to date.

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At a top level I'm currently:

- 13.7% cash (home purchase money)

- 24.4% bonds (index linked savings certificates for home purchase, corporate bonds, index linked gilts)

- 9.8% property (European and UK Commercial/Industrial)

- 4.9% commodities (gold)

- 12.4% international equity (US, Europe, Japan)

- 5.4% emerging market equity

- 9.9% Aus equity (a mistake in hindsight)

- 19.5% UK Equity

Up 15.9% year to date.

If you can do that every year you could make a packet as a hedgie.

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If you can do that every year you could make a packet as a hedgie.

It's been a good year... Since I started (end 2007) to end July (I update long run performance at end of each month) so including the GFC my nominal annualised performance has been 6.8%.

None of what I do is a secret. It's all published on my blog before I do it which is quite different to a lot of the 'experts' who publish what they're doing after the markets have responded.

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Cash: 6%

Bonds: 15%

Equities: 75%

Gold: 2%

Bitcoin: 2%

Plus a house and a deferred DB pension of dubious worth.

I just live off 80% of the equity divis. It's worked for, ooh, all of eight months.

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At a top level I'm currently:

- 13.7% cash (home purchase money)

- 24.4% bonds (index linked savings certificates for home purchase, corporate bonds, index linked gilts)

- 9.8% property (European and UK Commercial/Industrial)

- 4.9% commodities (gold)

- 12.4% international equity (US, Europe, Japan)

- 5.4% emerging market equity

- 9.9% Aus equity (a mistake in hindsight)

- 19.5% UK Equity

Up 15.9% year to date.

A rather more 'balanced' portfolio than mine :)

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It's been a good year... Since I started (end 2007) to end July (I update long run performance at end of each month) so including the GFC my nominal annualised performance has been 6.8%.

None of what I do is a secret. It's all published on my blog before I do it which is quite different to a lot of the 'experts' who publish what they're doing after the markets have responded.

Serious question - how much of your success could be put down to timing (looks like you started during or just after the 2007/2008 economic crisis)? And would how would your strategy if you had timed it differently? i.e. from 2000 to 2009

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BBC News are, this morning, going to discuss what to do with your cash in a low interest rate environment (under the mattress?) and asking for viewer opinions.

Could be interesting, not for ideas but to gauge public opinion.

:o That would create a bank run......

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Serious question - how much of your success could be put down to timing (looks like you started during or just after the 2007/2008 economic crisis)? And would how would your strategy if you had timed it differently? i.e. from 2000 to 2009

My approach has no timing requirement other than 'time in the market'. I simply started when I started and stayed with it. It wasn't dependent on a valuation or anything similar.

I haven't back tested to say 2000 as it's just not relevant to me.

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Serious question - how much of your success could be put down to timing (looks like you started during or just after the 2007/2008 economic crisis)? And would how would your strategy if you had timed it differently? i.e. from 2000 to 2009

I have found this site very interesting in terms of evaluating the performance of portfolio diversification over time. It's US orientated but still very instructive.

https://portfoliocharts.com/

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I just got an email from Post Office Savings saying that they will be reducing the rate on our online saver from 1.3% to 0.9% from September. Fortunately, the majority of the money we have with them is in a fixed rate bond which has another six months to go at 1.7% but the trend everywhere is definitely down. So much for the promised rate rises if we voted for Brexit.

Got another email from Post Office Savings saying that they are now going to reduce it to 0.25%. I'll wait until next month before moving the money to see if the account I'm planning to move it to is still paying 1.25% then.

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