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Bond death match: can index-linked bonds replace nominal bonds in your portfolio?
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@TA – excellent! Thank you.
For me though, retired at 60, linkers are guaranteed inflation-hedged cashflow. I’ve completed(?) my 7 year linker ladder that will take me from 67-73. I don’t count it as part of my portfolio at all but as term-limited guaranteed income. It is making me re-think my projected allocation to cash (or rather RL MM fund). Maybe a build out a small allocation to TR73 to capture the volatility? With interest rate rises predicted soon, now probably not the time though.
Apparently 72 is my expected healthspan, and I can see my horizons gently reducing after that, so the SP and small DB will be sufficient for necessities and SIPP/ISAs for anything above that.
Really looking forward to your article on a re-do of the defensive portion of the 60/40. Spicier assets – Nvidia? Options and currency trading? Shorting? Go big or go home! The mind boggles! 🙂