Gold Priced in GBP – March 2010 Update

In absolute terms gold continues to reach new levels of expensiveness in GBP terms when looking back over historic average monthly data since 1979. However there has been a lot of inflation over this period and so as always I will look at the real (inflation) adjusted price of gold over this period which is my first chart today. The inflation dataset that I will use is the UK retail prices index (RPI).

Average UK interest rates for savers – March Update

My chart today shows that for those that are looking to save it isn’t getting any better out there. Average interest rates on cash savings are declining if you are prepared to lock your money up for any period of time and if you want instant access the average increase is a miserly 0.07%. Let’s analyse the data in more detail.

A History of Severe Real S&P 500 Stock Bear Markets – March Update

Looking at the first chart which shows the real (inflation adjusted) S&P 500 (or its predecessor) stock market I have identified three historic severe stock bear markets. These I am defining as stock markets where from the stock market reaching a new high, they then proceeded to lose in excess of 60% of their real (inflation adjusted) value. These are best demonstrated by the second chart which shows each of these stock bear markets and the fall in percentage terms from the peak. So briefly what were these bear markets (full details here).

US (S&P 500) Stock Market – March 2010 Update

To try and squeeze some more performance out of a retirement investing strategy that is heavily focused on buy & hold and asset allocation I am using a Cyclically Adjusted Price / Average 10 Year Earnings (PE10 or CAPE) ratio for the S&P 500 to value the US (specifically the S&P 500) stock market. The method used is that developed by Yale Professor Robert Shiller however I also incorporate earnings estimates up to the PE10 month of interest. Background information here.

Tax efficient investing – 2009/2010 Individual Savings Accounts (ISA) year end fast approaching

This post is a reminder that the 2009/2010 individual savings account (ISA) 05 April 2010 year end is fast approaching. If you haven’t already taken full advantage of your annual ISA allowance then you may want to investigate now before it’s too late. Once the year ends the opportunity is lost forever. As a mid 30’s investor I have taken full use of my allowance of £7,200 already this year by investing within a stocks and shares ISA.

My Current Low Charge Portfolio – March 2010

Buying (New money): Since my last post I have saved 83% of my net earnings. In addition some more good news was that significant earnings that I had been waiting on for the past year were paid to me this month meaning my total savings amount was also very large at 6.1% of my Low Charge Portfolio assets. These were allocated as follows: 84.7% to cash, 2.3% to UK equities, 3.2% to international equities, 0.6% to index linked gilts and 9.2% to UK commercial property. This money was invested both outside of any tax wrappers and also within a pension. Unfortunately no investment was made into my stocks and shares ISA as I have already made my £7,200 worth of contributions. I am eagerly waiting for the new ISA year starting on the 06 April 2010.

Australian Property Market (Alternate Data) – February 2010 Update

The Brisbane and Australian Eight Cities (Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin & Canberra) House Price Index published by the Australian Bureau of Statistics (ABS) catalogue 6416.0 suits my requirement to track Australian house prices as part of my retirement investing strategy.  It however seems to have two flaws. Firstly the housing data is only published quarterly and secondly this housing data is then published over a month after the quarter ends.

Frugal living – pay yourself first and the lowest price grocery bill

I am trying to achieve retirement within 7 years. I’m defining retirement as work becoming optional. To do this I am generally saving 60% of my gross earnings every month. How have I managed to get to this high level? Well I think it’s a high level, if you’re doing better or similar I’d love to hear your methods. In fact I’d like to hear anyone’s suggestions for methods to save money. Please feel free to comment.

Average UK interest rates for savers

Previously I described how I was struggling to find a home for cash that could generate a real return after inflation and tax. The best rate I could find for a basic no frills easy access account was 2.5% but my chart today shows how bad it really is out there.

Are pensions a good retirement planning tool? (Full text)

Where is the best place to put your money for retirement? Ask a lot of people and the automatic response is that you should put your money in a pension to get a bigger retirement pot which comes from the tax advantages given by HMRC. I however am not convinced and in fact believe the government and the pensions industry is actually close to misleading the public as to the advantages of pensions.

Are pensions a good retirement planning tool? (Part 1 of 2)

Where is the best place to put your money for retirement? Ask a lot of people and the automatic response is that you should put your money in a pension to get a bigger retirement pot which comes from the tax advantages given by HMRC. I however am not convinced and in fact believe the government and the pensions industry is actually close to misleading the public as to the advantages of pensions.