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Smarter Investing: Simpler Decisions for Better Results (Financial Times Series)

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Personally, I wouldn’t want to hold more than 40% bonds in retirement no matter how old I am – based on historical SWR sims of global equity / UK bond portfolios: https://monevator.com/how-to-choose-an-swr-for-your-isa-and-your-pension-to-hit-financial-independence-fast/ So for an RFA portfolio probably still benefit to finding the HSBC All World on another platform unless I’m missing something?

Smarter Investing By Tim Hale | Used | 9780273708001 - Wob Smarter Investing By Tim Hale | Used | 9780273708001 - Wob

If I have the figures right what would the benefit be over just keeping cash? I appreciate its value decreases with inflation but there would be no risk in the value going down. The book therefore doesn't cover the difficulties of knowing how to invest sensibly in 2013 when America and Britain are struggling for growth, fears grow in Europe of deflation and prolonged recession, Japan is determined to inflate its economy and is creating a potential currency war and who really knows what the truth is behind the remarkable growth in China.Swensen’s model investment portfolio is much better diversified than Markowitz’s but that doesn’t always work to your advantage. UK equities, emerging markets, and property have endured a tough 15 years or so versus the developed world. I suspect it’s just variants of cash buffer conservatism and there is no hard and fast answer. The 3/6 months living expenses really comes AIUI from the accumulation phase of life so you’re not forced into a drawdown should you e.g. lose a job or have a short term life event. Once you are actually in drawdown you perhaps don’t need such a buffer and maybe 1/2 months will do plus a plan on how to replenish which would be from your overall portfolio. My inclination is to leave that short term buffer out of the portfolio proper then rebalance/drawdown according to my chosen strategy. In practice if I drawdown once a quarter there might be times my short term cash is 4 months and hopefully never less than 1 month, but I hope I will plan my drawdowns conservatively so there is always more in the tank if needed at the next drawdown. Overall, this is another wealth-preservation portfolio, but only if you can see past the individual performances of its components.

Smarter Investing By Tim Hale | Used | 9780273722076 | World Smarter Investing By Tim Hale | Used | 9780273722076 | World

Your portfolio could sensibly look something like this if you’re at or near-retirement. Essentially, you’ve hit your number, won the game, and don’t need to take big risks with your wealth anymore.J Hudson – I prefer FSWD’s combination of factors: small, value, quality, momentum vs JPLG’s value, quality, momentum. Small value has historically outperformed large value. I believe a more thought provoking book is The Permanent Portfolio: Harry Browne's Long-Term Investment Strategy which explains the idea of building a portfolio for all possible economic outcomes. Even that doesn't cover these strange times when investment asset values look artificially high as the Federal Reserve in particular continues its experiment in Quantitative Easing.

Tim Hale - Smarter Investing — MoneySavingExpert Forum Tim Hale - Smarter Investing — MoneySavingExpert Forum

From here, you can easily move up the gears to a classic 60/40 portfolio, or even more gung-ho allocations if you discover you’d sell your grandmother to buy more shares in a market meltdown.Smarter Investing introduces you to a simple and powerful set of rules for successful investing, helping you to build an investment portfolio that suits your needs, stays the course when markets get rough and quietly gets on with the job of generating better results. It largely stems from over-estimating the annual amount we needed to live on; and not fully appreciating the intent of sub-diving this into ‘essential’ and ‘discretionary’ spend.

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