Investment Advice

[Juanco20]

I'm fortunate to be receiving around £50k shortly which I'm looking to invest.

Currently have a Stocks and shares ISA with SJP and a pension that's with them too. Making significant regular contributions in to those. The less said about how they're performing the better.

I'm therefore looking to invest this money differently. I've thought about throwing it all in premium bonds with £50k being the limit or a growth bond which are now in excess of 6% as risk free options.

Another option I've considered is some form of commodities ETF such as those offered by WisdomTree.

Any advice for other options I should be considering? I'd say I'm fairly open to risk and I'm a long way out from retirement so able to ride the peaks and troughs. I shouldn't need to access this money anytime soon so it can be tied up if the investment requires it.

[bitchstewie]

Start by asking yourself why a low cost global tracker or multi-asset fund from the likes of Vanguard or HSBC or BlackRock and in line with your appetite for risk isn't the right choice.

[UrbanAchiever]

And also ask yourself if SJP are the best people to look after your current investments. Compare their charges and performance to a low cost index tracker. You may decide to move your money from them at the same time as investing this new £50k.

[Juanco20]

UrbanAchiever said:

And also ask yourself if SJP are the best people to look after your current investments. Compare their charges and performance to a low cost index tracker. You may decide to move your money from them at the same time as investing this new £50k.

Yes I've already thought long and hard about that. The charges to move the pension in the first 7 years are ridiculous so that will be staying with them. The stocks and shares ISA will likely be moved.

[ILikeCake]

You can always start a SIPP with a lower cost provider in the meantime. You're not limited to one.

[xeny]

AdamIM said:

There are very specific rules on transfer fees as per the FCA (revised in 2018), I would encourage you to look into this because they shouldn't be 'ridiculous'.

They're specified here:https://www.sjp.co.uk/charges/pensions-charges . Looks to be a sliding scale from 6 to 1% over the first 6 years?

[z4RRSchris]

SJP are a complete con and put the 50k in a 5% savings account.

not investment advice dyor.

[simon800]

Juanco20 said:

Yes I've already thought long and hard about that. The charges to move the pension in the first 7 years are ridiculous so that will be staying with them. The stocks and shares ISA will likely be moved.

Given how badly SJP funds perform and how much they charge for them, I suspect sucking up the cost of leaving will pay itself back (and then some)....

Avoiding a £x one off hit only to be down by far more than that over the next 7 years seems counter intuitive.

[bitchstewie]

I know there are plenty of threads on SJP so this may be stuff you already know but have you looked at what you're paying in total in fees?

Do you know a number?

[mikef]

Don't pay another penny into SJP. Take this as the opportunity to start over again with your pension

[Mr Pointy]

SJP - just get out:

https://www.telegraph.co.uk/money/investing/troubl...

As for the £50k then Premium Bonds is one option, although the return most people are seeing isn't great. If your ISAs are full then maybe look at a SIPP next.

[BobToc]

If you might need the money soon put it in a high interest cash account.

If you might need the money before retirement, put the first £20k in an ISA in VWRP. Put the rest in a GIA, also in VWRP.

If you want to save for a retirement open a SIPP with Vanguard and put it in VWRP.

[xeny]

I'd broadly do this ^ , with three caveats.

With 50K, be careful of annual pension contribution limits if you open a SIPP.

If I end up with some in a GIA, buy VWRL (so I have to manually reinvest dividends) as it makes tax returns easier.

If I end up with some in a GIA, make a point each year of selling and rebuying in an ISA, trading VWRL for VWRP at that point.

[NowWatchThisDrive]

Worth noting you can still have some ERI (however small) even on the distributing ETFs like VWRL. If you owned a comparable GB-domiciled distributing OEIC like HSBC FTSE All World instead, there's none whatsoever.

Edited by NowWatchThisDrive on Friday 29th September 13:15

[glennjamin]

National Savings Guaranteed Growth Bond looks good 6.2% fixed for one year.

[xeny]

NowWatchThisDrive said:

Worth noting you can still have some ERI (however small) even on the distributing ETFs like VWRL. If you owned a comparable GB-domiciled distributing OEIC like HSBC FTSE All World instead, there's none whatsoever.

Edited by NowWatchThisDrive on Friday 29th September 13:15

I think you may need to unpack that for the OP.

[NowWatchThisDrive]

xeny said:

NowWatchThisDrive said:

Worth noting you can still have some ERI (however small) even on the distributing ETFs like VWRL. If you owned a comparable GB-domiciled distributing OEIC like HSBC FTSE All World instead, there's none whatsoever.

Edited by NowWatchThisDrive on Friday 29th September 13:15

I think you may need to unpack that for the OP.

Fair point, it probably should have been a quoted reply to yours rather than a general post!

[BobToc]

NowWatchThisDrive said:

xeny said:

NowWatchThisDrive said:

Worth noting you can still have some ERI (however small) even on the distributing ETFs like VWRL. If you owned a comparable GB-domiciled distributing OEIC like HSBC FTSE All World instead, there's none whatsoever.

Edited by NowWatchThisDrive on Friday 29th September 13:15

I think you may need to unpack that for the OP.

Fair point, it probably should have been a quoted reply to yours rather than a general post!

I mean to be completely honest I wouldn't worry about it in the context of VWRL. It's tiny and HMRC are never going to pick up on it (my rough maths is that it's $1.30 on £50k worth of VWRL).

Edited by BobToc on Friday 29th September 18:57

[NowWatchThisDrive]

Indeed - going to be a rounding error most of the time, just thought I'd mention it as a point of order anyway. I incurred some on a VMID holding a couple of years back that amounted to just slightly more than I'd have been comfortable ignoring for the tax return...