Self Managing a Sipp
Self Managing a Sipp
Author
Discussion

Ruskie

Original Poster:

4,525 posts

230 months

Friday 6th July 2012
quotequote all
Leading on from a previous thread about Sipp. As I am unable to remove the money invested I am looking into self managing the fund with a view to establishing a bit more growth than at the moment. I am able to take a quarter at 35 and I am assuming it will be a quarter of what it's worth on the date of my 35th birthday.

I am not from a financial background. Is it realistic to attempt self managing or am I asking for trouble.

I would appreciate some advice and first hand experience from people who have attempted this.

I am so busy at the moment so this is my start point but I intend to have a day of information gathering and getting update figures but around £13-14k fund value.


Thanks in advance.

bogie

17,094 posts

302 months

Friday 6th July 2012
quotequote all
yes, there are plenty of basic investment books about, and have been many recommendations on this forum in the past

but really you just need some simple strategy, buy some blue chips companies paying good dividends, review once every 6-12 months ...buy in the dips.thats as little as you have to do...you are not talking about becoming a day trader

with £14k keep it to a few companies, dont spread yourself too thin...

most likely now the money is in some mutual funds paying a few percent and taking management fees...decide for yourself where you want the money i.e. in some companies you understand a bit about and save the management fees for starters...a 1% compounded over 25 years is a lot of money

teach yourself to look after your own money and it will save you ££££ long term

LeoSayer

7,838 posts

274 months

Friday 6th July 2012
quotequote all
I would recommend taking charge of your own financial affairs but only if you have the time to do so.

As well as making the initial investment decision you need to decide which provider to use. You need to regularly review how they are doing and spend the time to decide what changes to make when your circumstances or attitude to risk changes.

With no financial background and only a day to spare....forget it.

Ruskie

Original Poster:

4,525 posts

230 months

Friday 6th July 2012
quotequote all
LeoSayer said:
I would recommend taking charge of your own financial affairs but only if you have the time to do so.

As well as making the initial investment decision you need to decide which provider to use. You need to regularly review how they are doing and spend the time to decide what changes to make when your circumstances or attitude to risk changes.

With no financial background and only a day to spare....forget it.
Just to clarify I meant one day just to sit down and have a really good read up and research to see if it's for me.

raptor600

1,356 posts

176 months

Friday 6th July 2012
quotequote all
Definitely do it yourself - it is not complicated.

If you haven't bought and sold stocks in the past then do not just jump straight in...read these books first!

Warren Buffet - Snowball

Financial Times Guide To Investing

walm

10,644 posts

232 months

Friday 6th July 2012
quotequote all
Personally I would just bung it in a FTSE or S&P tracker.
If you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.

While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).

Even the full time fund managers can't outperform the index.

Newc

2,195 posts

212 months

Friday 6th July 2012
quotequote all
walm said:
Personally I would just bung it in a FTSE or S&P tracker.
If you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.

While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).

Even the full time fund managers can't outperform the index.
This, all day long. Don't waste any time on trying to teach yourself investment strategies and trading techniques. Sit quietly for an hour and ask yourself: knowing what I do about the world, do I think that any particular country, region, or industrial sector is going to do relatively better over the next twenty years.

Take your top three answers. Go to your SIPP provider. Look up the relevant index tracker or ETF for each of your three areas. Buy 4.5k's worth of each one. Go to the pub.

Review your thoughts annually. As you get to your 50's, start to move the investments over to bond-like products rather than equity-like ones.


dingg

4,559 posts

249 months

Friday 6th July 2012
quotequote all
walm said:
Personally I would just bung it in a FTSE or S&P tracker.
If you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.

While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).

Even the full time fund managers can't outperform the index.
LOL

traders market for the past 12 years why do you think its going to change?

ftse circa 7000 beginning 2000 IIRC

walm

10,644 posts

232 months

Friday 6th July 2012
quotequote all
dingg said:
LOL

traders market for the past 12 years why do you think its going to change?

ftse circa 7000 beginning 2000 IIRC
Glad I amuse you.

Who are these "traders" you speak of?
Those expert fund managers who have FAILED to outperform the index?
Or are you talking about momentum driven day traders?

Neither of which the OP is looking to become.

Feel free to pick another point in the FTSE's history that was also at the top of a bubble! rolleyes

someday

173 posts

189 months

Friday 6th July 2012
quotequote all
Personally, I read this http://www.amazon.co.uk/gp/product/0273722077/ref=...

and then put all my SIPP money into a Vanguard Life Strategy Fund.


dingg

4,559 posts

249 months

Friday 6th July 2012
quotequote all
walm said:
Glad I amuse you.

Who are these "traders" you speak of?
Those expert fund managers who have FAILED to outperform the index?
Or are you talking about momentum driven day traders?

Neither of which the OP is looking to become.

Feel free to pick another point in the FTSE's history that was also at the top of a bubble! rolleyes
some data here for you to chew over

ftse doesn't fare too well IMO



http://www.forecast-chart.com/historical-ftse-100....

walm

10,644 posts

232 months

Friday 6th July 2012
quotequote all
dingg said:
walm said:
Glad I amuse you.

Who are these "traders" you speak of?
Those expert fund managers who have FAILED to outperform the index?
Or are you talking about momentum driven day traders?

Neither of which the OP is looking to become.

Feel free to pick another point in the FTSE's history that was also at the top of a bubble! rolleyes
some data here for you to chew over

ftse doesn't fare too well IMO

http://www.forecast-chart.com/historical-ftse-100....
I am well aware of the data.
Doesn't fare too well relative to WHAT??
It has shown 10% CAGR since 1985 ex-divs so that's not bad for a long term buy and hold strategy that I am advocating.

What strategy are you suggesting the OP employ?

So far you have said my suggestion was bad - why not be constructive and give him another option?

dingg

4,559 posts

249 months

Friday 6th July 2012
quotequote all
ok here goes the other option


may have to register but this thread is interesting

http://uk.advfn.com/cmn/fbb/thread.php3?id=9227087



maybe stick 75% in a range of aim oilers and 25% into Indian indices if you just want to sit back and enjoy the ride

hth

would definitely not be sticking into a ftse tracker

uk on its arse and nothing I can see will change in the future

stockpickers will continue to do ok but to plump it into an index and accept 10% over 10 years does nothing for me I'm afraid

AdeTuono

7,626 posts

257 months

Friday 6th July 2012
quotequote all
Ruskie said:
I am able to take a quarter at 35 and I am assuming it will be a quarter of what it's worth on the date of my 35th birthday.
Are you sure that's correct? I was led to believe that you can't take your 25% lump sum until 55. Happy to be proved wrong though.

bogie

17,094 posts

302 months

Friday 6th July 2012
quotequote all
one things for sure, ask 20 people for investment ideas and you get 20 answers smile

other than short term gambling, it can take many years for strategies to be proven or not, so its hard to know what to do

everyone has different circumstances, experience, attitude to risk, goals etc etc, so all you can do is educate yourself and make your own decisions

if you win its down to you, if you lose, you learn and you cant blame anyone else

You have a lifetime ahead of you to learn, so dont rush to do something with what youve managed to save right now, spend a few months reading up and it will pay off later

I sure wish id paid more attention when I was your age...I had one of those safe government jobs with the good pension too at the time wink

Ruskie

Original Poster:

4,525 posts

230 months

Friday 6th July 2012
quotequote all
AdeTuono said:
Ruskie said:
I am able to take a quarter at 35 and I am assuming it will be a quarter of what it's worth on the date of my 35th birthday.
Are you sure that's correct? I was led to believe that you can't take your 25% lump sum until 55. Happy to be proved wrong though.
Yeah it's correct. I had a job that enabled me to take 25% at 35.

Ruskie

Original Poster:

4,525 posts

230 months

Friday 6th July 2012
quotequote all
Seems to be a split between go for it and leave it, it's not worth the hassle.

I have a friend who trades from home as a living and seems to be doing ok. He has said when I get the details he will be able to suggest a number of investments. He trades normally smaller gas and oil companies as his family has history in that area over a long period.

Thanks for the comments all very helpful. Keep them coming!

johnfm

13,751 posts

280 months

Thursday 12th July 2012
quotequote all
Seems I have £10k in an old pension fund from a previous employer.

I think I will transfer it to a SIPP and continue a similar strategy to my stock & shares ISA - I think that has made 4.5% just in dividends this year, which is probably better than leaving in a bank at the moment...


Ruskie

Original Poster:

4,525 posts

230 months

Tuesday 7th August 2012
quotequote all
Online SIPP is now set up. Make it a little easier to assess now I have real time access to where the investments are.

Interesting to note looking at how the fund has progressed. Since 2006 it has grown by 27% and 5.5% in the last year. It would be naive of me to think I could increase that return with my meagre knowledge!

I have another separate pension set up with a small amount in, approx £750. Can I transfer this into my SIPP?

Newc

2,195 posts

212 months

Wednesday 8th August 2012
quotequote all
Ruskie said:
I have another separate pension set up with a small amount in, approx £750. Can I transfer this into my SIPP?
Yes you can. Ask your current provider for a transfer figure. Make sure you're sitting down when you open their letter.