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

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Index-linked National Saving Certificates would be the ideal bolt-hole but have been cast into deep freeze by the Chancellor. Faced with this, Hale turns to heresy, suggesting investors throw in their lot with active managers who offer short-dated linker funds.

As with last week’s article on the Naked Trader, there hasn’t been much to disagree with in the introductory chapters. Instead, looking at investing as a long-term exercise is much more beneficial because healthy profits take time to build.Tim wrote a chapter in defense of a low cost, systematic approach to investing in this anthology of investors. The effect is most pronounced on portfolios with a heavy bond allocation, but the drag was enough to make me wince even on a 60:40 equity/bond allocation. If you have investment accounts elsewhere, you can transfer them to us and benefit from having everything in one place.

They are smart because they invest, but at the same time unwise by doing so with an expensive broker.

On index-linked gilts, you’re right, that linkers should be less vulnerable to interest rate risk than conventional bonds because real interest rates are less volatile than nominal interest rates.

Depending on your risk appetite, you may choose to diversify your investments between shares and bonds.

Our clients are based across the UK, including Scotland and Northern Ireland, as well as Norway and Hong Kong. A major disadvantage to this method of investing is the fact that you spend a lot on transaction costs. They often sell out early, but can also be heavily discounted later if they don't, so here's a round-up of some of the best I’ve seen. Is this purely due to preferring short bonds to long bonds in the current climate, or is it a change of reasoning about the benefit of long bonds to balance a high equity allocation? Tim Hale is recommend for anyone who needs conviction about passive investing although its a hard and technical in places i feel and could make you think – whats the point of most asset classes – including bonds (and now its seem more so property and commodities).