SIPP Fund Advice
Discussion
I plan to take some professional advice on the subject, but I would appreciate some views from those more learned than I about such matters. I've recently made a number of large (for me) pension contributions - as owner of a Ltd Company it was advantageous to do so.
It probably represents around 33% of my planned income from around 2033 assuming I'm still around then (will be late 50's).
Is there any reason why I wouldn't want to drip feed most/all of it over a period of months into appropriate Vanguard LifeStrategy/Target Retirement funds?
It probably represents around 33% of my planned income from around 2033 assuming I'm still around then (will be late 50's).
Is there any reason why I wouldn't want to drip feed most/all of it over a period of months into appropriate Vanguard LifeStrategy/Target Retirement funds?
Brexit, trump, trade wars, India and Pakistan going toe to toe, a near 10 year good run on equities.
There are all kinds of reasons not to commit now. However if you don’t you’ll be losing 2% a year to inflation and probably can’t do much better that 1.5% on cash deposit.
I’m in a similar position but also don’t know if I’ll need possible pension money before I’m old enough to take it.
I’d still feed it in myself now because 14 years is a long time but you might sweat out the first 5 to 7 years. Pension is a bit easier because it’s age committed anyway.
There are all kinds of reasons not to commit now. However if you don’t you’ll be losing 2% a year to inflation and probably can’t do much better that 1.5% on cash deposit.
I’m in a similar position but also don’t know if I’ll need possible pension money before I’m old enough to take it.
I’d still feed it in myself now because 14 years is a long time but you might sweat out the first 5 to 7 years. Pension is a bit easier because it’s age committed anyway.
UpTheIron said:
I plan to take some professional advice on the subject, but I would appreciate some views from those more learned than I about such matters. I've recently made a number of large (for me) pension contributions - as owner of a Ltd Company it was advantageous to do so.
It probably represents around 33% of my planned income from around 2033 assuming I'm still around then (will be late 50's).
Is there any reason why I wouldn't want to drip feed most/all of it over a period of months into appropriate Vanguard LifeStrategy/Target Retirement funds?
Where have you made the contributions to? A current pension?It probably represents around 33% of my planned income from around 2033 assuming I'm still around then (will be late 50's).
Is there any reason why I wouldn't want to drip feed most/all of it over a period of months into appropriate Vanguard LifeStrategy/Target Retirement funds?
UpTheIron said:
Is there any reason why I wouldn't want to drip feed most/all of it over a period of months into appropriate Vanguard LifeStrategy/Target Retirement funds?
I'd use an equity tracker as I don't like the UK bias of lifestrategy.I'd rather make my own equity vs bond ratio choices than pick a retirement date and then have a glide path picked by Vangaurd, especially as I'm unlikely to want a really high bond ratio in retirement.
You may want to look at https://ofdollarsanddata.com/how-to-invest-a-lump-... (and check the underlying maths) when considering lump sum investing.
Every piece of research on the subject says you're better off in the long term putting the money into the market and then forgetting about it.
On the related subject of current relative market highs, some of the best returns in bull markets happen in the last 12-18 months and you are on average better off for getting invested and then riding through the subsequent bear market than trying to time it and failing, which you will, unless your inordinately lucky. So if you can tell me we've had the market high and are know in the bear phase, with absolute 100% certainty i'l be very interested!
Drip feeding will aid your sleep pattern, but not your bank balance.
On the related subject of current relative market highs, some of the best returns in bull markets happen in the last 12-18 months and you are on average better off for getting invested and then riding through the subsequent bear market than trying to time it and failing, which you will, unless your inordinately lucky. So if you can tell me we've had the market high and are know in the bear phase, with absolute 100% certainty i'l be very interested!
Drip feeding will aid your sleep pattern, but not your bank balance.
Derek Chevalier said:
trickywoo said:
There are all kinds of reasons not to commit now.
I'm not aware of a time in history when there hasn't been all kinds of reasons not to commit.The key to successful investing is to put aside your feelings, look at the long term history and just get in there with a sensible approach. If making an investment isn't "a bit worrying" you're not doing it right!
Gassing Station | Finance | Top of Page | What's New | My Stuff