Here is a quick overview of the characteristics of stocks/shares and bonds and the benefits of holding both in your portfolio. This is one of a series of great videos from Investopedia that present investing basics in a slick, easily digestible format.
A simple approach to successful personal investing with the goal of generating a growing income from a portfolio including cash savings, shares, corporate bonds and government-backed investments, using online savings and brokerage accounts and shielding your investments from tax wherever possible.
Sunday, 27 November 2011
Portfolio Mix: Stocks/Shares vs. Bonds
Here is a quick overview of the characteristics of stocks/shares and bonds and the benefits of holding both in your portfolio. This is one of a series of great videos from Investopedia that present investing basics in a slick, easily digestible format.
Labels:
Corporate Bonds,
government bonds,
High-Yield Shares
How to Find Good Dividend Shares
Investing 'guru' Jim Trippon gives suggestions on what you should consider before adding a dividend-paying stock/share to your portfolio. Basic, but sensible advice. (Does the interviewer remind you of the Matrix?)
Labels:
dividends,
High-Yield Shares
Plan for a Longer Retirement

Well here is an incredible statistic: over the last 4 years in the UK life expectancy has increased by one year. Something similar must be happening in all developed countries.
And this looks like a continuing trend, with the implication that your retirement could be longer than you think.
Labels:
DIY investing,
Income Investing,
retirement
Friday, 25 November 2011
Bond Prices and Interest Rates
The Khan Academy is a non-profit organisation that provides a range of YouTube videos, typically on mathematical themes. It also provides a number of videos on financial topics, which is of more interest to a DIY Income Investor.
Here is one explaining very clearly the inverse relationship between bond price and interest rate - which can, initially, be a difficult concept to understand.
Labels:
Corporate Bonds,
government bonds
Thursday, 24 November 2011
Portfolio Target: Just REIT!
In a recent post we saw that - in the US - REITs (Real Estate Investment Trusts) had been a more volatile asset class, but have had a higher return (since the late 90s) than dividend shares, shares in general or government bonds.
So, looking at the UK market, are there any likely REIT targets for the DIY Income Investor portfolio?
So, looking at the UK market, are there any likely REIT targets for the DIY Income Investor portfolio?
Tuesday, 22 November 2011
Yields and Volatility of Different US Asset Classes

It is instructive to look at how these different asset classes have performed in the past - over the peaks and troughs of the economic cycles. How far can the historical record help us navigate the investment 'snakes and ladders' environment?
Labels:
government bonds,
High Yield Portfolio (HYP),
REITs
Monday, 21 November 2011
DIY Financial Planning
This blog strongly encourages a DIY approach to personal finance and we are always looking for useful resources.
Here is an example of a financial advisor setting out the basics of a DIY approach to financial planning in a free eBook - something that is unusual, to say the least.
Here is an example of a financial advisor setting out the basics of a DIY approach to financial planning in a free eBook - something that is unusual, to say the least.
Labels:
DIY investing,
financial decisions,
planning
Friday, 18 November 2011
S&P 500: Historical Downward Trend in Dividend Payout Ratio

Labels:
dividends
Thursday, 17 November 2011
Economic Uncertainty and Dividend Shares (UK)
Russ Mould, Editor of Shares Magazine talks about the prospects for dividend shares in an uncertain market.
Labels:
dividends,
High Yield Portfolio (HYP)
Over Half of UK Families Have Unsecured Debt

Yet over half of UK families have unsecured debt, owing an average of £10,604, with the average debt increasing with the number of children in the household.
Labels:
debts,
DIY investing
Why DIY? UK Banks Give Bad Advice

Which? - the UK consumer watchdog - has discoved that High Street banks are providing 'shockingly' poor investing advice to inexperienced older savers - with nine in ten High Street bank advisers failing an undercover investigation.
Labels:
Bad financial advice,
DIY investing
Thursday, 10 November 2011
Charlie Munger on US 'Boom and Bust'
In this BBC interview with the legendary Charlie Munger, learn why long-term investors have to go through periods when they might be showing a loss of 50% of their investment. You can also hear his views on the 'idiot boom', Alan Greenspan and the future of Berkshire Hathaway.
Labels:
Economy
Wednesday, 9 November 2011
Portfolio Buy: Resolution (LSE:RSL)

A quick look at the performance of the FTSE 100 constituent companies threw up this opportunity with (as of today) a dividend yield of over 7% and a p/e of under 3!
Tuesday, 8 November 2011
Portfolio Update: Profit Taking - GSK & VOD
The DIY Income Investor approach is generally 'buy and hold'. However, there are times when it is OK to sell (and there are times when you need to sell).
My mental image of the stock market is similar to one of those fairground carousels with ornately carved horses riding up-and-down as well as round-and-round; each horse follows a cycle of being high then falling, being low then rising. My strategy is to ride the horse to the top and then shift to one that is beginning to rise. What goes around comes around. Pretty simplistic eh!
So what encouraged me to sell this time?
My mental image of the stock market is similar to one of those fairground carousels with ornately carved horses riding up-and-down as well as round-and-round; each horse follows a cycle of being high then falling, being low then rising. My strategy is to ride the horse to the top and then shift to one that is beginning to rise. What goes around comes around. Pretty simplistic eh!
So what encouraged me to sell this time?
Monday, 7 November 2011
New E-Book Edition: Updated and Expanded

And it's free (although contributions would be gratefully received)! Do let me know if you have any comments or suggestions about how to improve it.
Labels:
e-book
Sunday, 6 November 2011
Carry on Balancing (Government Bonds and Equities)!
The DIY Income Investor approach involves diversification and balancing of asset classes, including cash, bonds (both Government and Corporate) and equities.
The good news (at least in the US) is that two of these asset classes are increasingly uncorrelated. In other words, they don't move in the same direction. This means that together they provide for a more robust portfolio.
The good news (at least in the US) is that two of these asset classes are increasingly uncorrelated. In other words, they don't move in the same direction. This means that together they provide for a more robust portfolio.
Wednesday, 2 November 2011
Portfolio Review: Legal & General (LSE:LGEN)
High-yield dividend shares form part of Level 6 of the DIY Income Investor Income Pyramid. As the fortunes of these companies change, so does their eligibility for my portfolio. So it is worth reviewing the portfolio selection, at least annually.
So, given the upheavals in the financial world, how is Legal & General (L&G) doing?
So, given the upheavals in the financial world, how is Legal & General (L&G) doing?
Tuesday, 1 November 2011
Basic Decision Flowchart for a DIY Income Investor

Labels:
DIY investing,
financial decisions,
Income Investing
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