Pension "Fund" Recommendations, within a Sipp Wrapper
Discussion
Hi all
Would appreciate any advice here.
Being a self-employed contractor I recently opened a SIPP with YouInvest / Sippdeal, much like other posters on here looking to manage it myself for lower fees. But I now find myself in the reverse position or needing to go to a managed fund.
Having established a small range of UK FTSE equities in a fairly nicely diversified way, the company I am contracting at has now decided that self-managed accounts fall foul of their "compliance" and have insisted on a range of pre-approval and reporting requirements that basically make it impossible to do any quick, price-advantageous, trades. As such I have decided to let a fund manager do it for me but due to transfer out fees, setup fees, etc etc I thought I should just invest in the funds available via this existing Sipp.
As such I am now thinking about using the SIPP as a "wrapper" and just putting the money into a few underlying funds. I have a DD set up to put monthly contributions in and was hoping to grow this nicely. I am 34 and after a period of shakey employment I am not in a position to put some money into a pension, but need a fairly decent grow potential as I am playing catch up now.
My questions are :
1. Does the YouInvest / Sippdeal approach have any considerations I need to worry about. As far as I can tell there is no difference, instead of investing in single names I am simply investing in a fund provider who will make the decisions for me for a fee.
2. What kind of management fees would you say are reasonable? Via the SIPP they seem to be in the region of 1-1.5% per annum management, and no initial opening fee. Havent yet read the small print on how the Sipp take their slice when using funds but will.
3. Is this the best approach? Last time I looked at a normal managed private pension approach, going out to "the street", there were setup fees in the region of £1000 for them "constructing" my pension, management fees, etc etc, and if I needed extra advice I needed an IA with their own fees on top.
4. And finally, can you recommend any particular funds that I should buy into? I have a small pension from a previous period of employment which invests in a Fidelity fund, something like the Fidelity All World 70:30 Index. I do not have the papers to hand but I think it was 70% EM and 30% established markets. I know EM are tanking at the moment but it seems to have done fairly well and given my timeframe it could have good upside? I have 30 years approx. to achieve some decent upside so I could potentially use recent events as a buying opportunity. But my knowledge isn't fantastic I admit.
All advice gratefully received
thanks fellows pHers
Would appreciate any advice here.
Being a self-employed contractor I recently opened a SIPP with YouInvest / Sippdeal, much like other posters on here looking to manage it myself for lower fees. But I now find myself in the reverse position or needing to go to a managed fund.
Having established a small range of UK FTSE equities in a fairly nicely diversified way, the company I am contracting at has now decided that self-managed accounts fall foul of their "compliance" and have insisted on a range of pre-approval and reporting requirements that basically make it impossible to do any quick, price-advantageous, trades. As such I have decided to let a fund manager do it for me but due to transfer out fees, setup fees, etc etc I thought I should just invest in the funds available via this existing Sipp.
As such I am now thinking about using the SIPP as a "wrapper" and just putting the money into a few underlying funds. I have a DD set up to put monthly contributions in and was hoping to grow this nicely. I am 34 and after a period of shakey employment I am not in a position to put some money into a pension, but need a fairly decent grow potential as I am playing catch up now.
My questions are :
1. Does the YouInvest / Sippdeal approach have any considerations I need to worry about. As far as I can tell there is no difference, instead of investing in single names I am simply investing in a fund provider who will make the decisions for me for a fee.
2. What kind of management fees would you say are reasonable? Via the SIPP they seem to be in the region of 1-1.5% per annum management, and no initial opening fee. Havent yet read the small print on how the Sipp take their slice when using funds but will.
3. Is this the best approach? Last time I looked at a normal managed private pension approach, going out to "the street", there were setup fees in the region of £1000 for them "constructing" my pension, management fees, etc etc, and if I needed extra advice I needed an IA with their own fees on top.
4. And finally, can you recommend any particular funds that I should buy into? I have a small pension from a previous period of employment which invests in a Fidelity fund, something like the Fidelity All World 70:30 Index. I do not have the papers to hand but I think it was 70% EM and 30% established markets. I know EM are tanking at the moment but it seems to have done fairly well and given my timeframe it could have good upside? I have 30 years approx. to achieve some decent upside so I could potentially use recent events as a buying opportunity. But my knowledge isn't fantastic I admit.
All advice gratefully received
thanks fellows pHers
thanks all
are passive at risk of a bit of a correction, given general consensus that equities may be ready to take a bit of a dive? I guess passive are tracking markets and indices?
Not sure if my Fidelity fund is a passive one will need to check but it seems to have been ok so far.
Problem is, believe it or not, even passive funds are falling within my company's new compliance rules, despite the fact I am a contractor, so it may need to be active
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