Anyone got a SIPP
Discussion
I have one with Bestinvest. Transferred in a few works pensions. All below the threshold where you must take advice, and the ransfer process was extremely easy.
I manage it myself. It has been mostly in funds, ticking along. But whilst I have been working from home in lockdown I have been investing in individual shares, with varying success!
I manage it myself. It has been mostly in funds, ticking along. But whilst I have been working from home in lockdown I have been investing in individual shares, with varying success!
I had a SIPP that sat in a "default" fund for years and it did ok, but a year or two back I had lightning bolt moment and realised how little time I have left if I want to retire around 60.
So I started doing a bit reading, I also watched a lot of stuff on Youtube (ok not necessarily the best idea) but luckily I came across Pension Craft, Terry Smith, and John Bogle, and my results have improved drastically since, even with recent events taken into account.
So I started doing a bit reading, I also watched a lot of stuff on Youtube (ok not necessarily the best idea) but luckily I came across Pension Craft, Terry Smith, and John Bogle, and my results have improved drastically since, even with recent events taken into account.
BlackG7R said:
I had a SIPP that sat in a "default" fund for years and it did ok, but a year or two back I had lightning bolt moment and realised how little time I have left if I want to retire around 60.
So I started doing a bit reading, I also watched a lot of stuff on Youtube (ok not necessarily the best idea) but luckily I came across Pension Craft, Terry Smith, and John Bogle, and my results have improved drastically since, even with recent events taken into account.
Bogle and Terry have complete opposite investing styles? So I started doing a bit reading, I also watched a lot of stuff on Youtube (ok not necessarily the best idea) but luckily I came across Pension Craft, Terry Smith, and John Bogle, and my results have improved drastically since, even with recent events taken into account.
JulianPH said:
Derek Chevalier said:
Bogle and Terry have complete opposite investing styles?
It is not a bad idea to blend different investment styles to achieve diversification (at least until you know that one style suits you better than another). 
Bogle (RIP) advocated buying the haystack rather than looking for the needle in the haystack. He believed stock market risk is great enough without introducing three other potential risks (style risk (e.g. large cap growth), stock risk (holding a small basket of stocks rather than the broad market) and style risk (manager says he will do one thing but morphs into doing another).
Obviously Smith has a completely different approach.
Derek Chevalier said:
Maybe, but I think it's important to fully understand their respective philosophies. Once you do that I'm not sure you would mix and match.
Bogle (RIP) advocated buying the haystack rather than looking for the needle in the haystack. He believed stock market risk is great enough without introducing three other potential risks (style risk (e.g. large cap growth), stock risk (holding a small basket of stocks rather than the broad market) and style risk (manager says he will do one thing but morphs into doing another).
Obviously Smith has a completely different approach.
I agree that they have two completely different approaches, this is obvious, but can't see why you wouldn't want to have a bit of each.Bogle (RIP) advocated buying the haystack rather than looking for the needle in the haystack. He believed stock market risk is great enough without introducing three other potential risks (style risk (e.g. large cap growth), stock risk (holding a small basket of stocks rather than the broad market) and style risk (manager says he will do one thing but morphs into doing another).
Obviously Smith has a completely different approach.
As this is PH, when condifions are bad I will rely on my Range Rover, when they are great my Ferrari comes into its own.
Two completely different approaches to motoring, but having both gives me the best of both worlds.
A rather crude analogy, I know, but it highlights my point.
Never you mind said:
If you do did you go for an advisory one or totally DIY? How is it working out for you? Who did you go with? Any tips for a noob?
I moved from a final salary to a SIPP.Couldnt have timed it better.
Chunk of cash invested in the market coming into Q1 20....
Needless to say there was a fair reduction in value , but it is up now.
I have a 10yr window to accumulate and then move to income.
Whilst I have been dabbling in the market for 25yrs (with varying success), i was not prepared/ willing to take charge of my family wealth - this sum has to see me through retirement and then the mrs (she will definitely outlive me!!)
Brewin Dolphin are the fund managers and they seemed the best of 3 that I reviewed.
I have an IFA that has provided useful information in structuring finances, tax implications and importantly my wife gets on with him.
Yes, there are charges and they are not insubstantial, but i can live with that. At the moment the aim is to grow the fund and in turn the charges will increase, so a common goal. They have access to more infirmation. than I do, can access more funds and have the ability to spread risk based on my profile. Me, i would have probably searched for a unicorn stocks and ended up with a lame donkey.
I have been impressed by the thread sponsors and had I been here longer, would have considered them. If it goes Pete Tong, I will definitely be giving them a shout to discuss options.
Edited by Meeten-5dulx on Saturday 6th June 08:39
Meeten-5dulx said:
I have been impressed by the thread sponsors and had I been here longer, would have considered them. If it goes Pete Tong, I will definitely be giving them a shout to discuss options.
Thank you for your kind words. I am happy to hear you have found a solution that works well for you and we will always be here should that change. Did a DIY years back and it was completely unnecessary in terms of time and money (fees so not too bad) spent..I did it on a whim, transferred a old employer pension to my HL account, bought a randomly chosen Vanguard fund (completely unsuitable in terms of risk profile), did ok by sheer pot luck and timing then came to my senses and transferred the funds back into my current employer pension. I'm currently a "fire and forget" investor so managing a SIPP isn't for me right now but later down the line I'd consider it if its suitable to do so and once I am a bit more clued up on investing.
As an fyi, my original previous employer pension was standard life and the current employer pension is also standard life. Fairly painless procedure with a few forms fill out and send off to process the transfer etc
As an fyi, my original previous employer pension was standard life and the current employer pension is also standard life. Fairly painless procedure with a few forms fill out and send off to process the transfer etc
Never you mind said:
If you do did you go for an advisory one or totally DIY? How is it working out for you? Who did you go with? Any tips for a noob?
You don't have to go for one route or the other, you can have a fully managed one without paying adviser fees.supersport said:
See the IM sticky at the top
Thanks for the mention Mark. JulianPH said:
Meeten-5dulx said:
I have been impressed by the thread sponsors and had I been here longer, would have considered them. If it goes Pete Tong, I will definitely be giving them a shout to discuss options.
Julian, whilst I have not used your company, the sage advice that you have hades out has been welcome. It is refreshing to see someone so willing to assist, and it know that my current team will have to keep a sharp pencil as I know where to go shoukd they fail me!
Thank you for your kind words. I am happy to hear you have found a solution that works well for you and we will always be here should that change.
Meeten-5dulx said:
Julian, whilst I have not used your company, the sage advice that you have hades out has been welcome.
It is refreshing to see someone so willing to assist, and it know that my current team will have to keep a sharp pencil as I know where to go shoukd they fail me!
Thank you once again. There is a lot of confusion out there and I am more than happy to help fellow PHers in simplifying things.It is refreshing to see someone so willing to assist, and it know that my current team will have to keep a sharp pencil as I know where to go shoukd they fail me!
You know where we are if you should ever need us and if you ever want a second opinion on anything just give me a shout on the IM sticky.
Derek Chevalier said:
Bogle and Terry have complete opposite investing styles?
Yes I realise that, and although I trust John Bogle and understand his philosophy, I also find Terry Smith and his approach very convincing . My only reservation with Terry Smith is the charges, and the possibility his "style" may go out of fashion. So the core of my SIPP and ISAs are in low cost Vanguard funds, with the remainder in Fundsmith.
JulianPH said:
Derek Chevalier said:
Maybe, but I think it's important to fully understand their respective philosophies. Once you do that I'm not sure you would mix and match.
Bogle (RIP) advocated buying the haystack rather than looking for the needle in the haystack. He believed stock market risk is great enough without introducing three other potential risks (style risk (e.g. large cap growth), stock risk (holding a small basket of stocks rather than the broad market) and style risk (manager says he will do one thing but morphs into doing another).
Obviously Smith has a completely different approach.
I agree that they have two completely different approaches, this is obvious, but can't see why you wouldn't want to have a bit of each.Bogle (RIP) advocated buying the haystack rather than looking for the needle in the haystack. He believed stock market risk is great enough without introducing three other potential risks (style risk (e.g. large cap growth), stock risk (holding a small basket of stocks rather than the broad market) and style risk (manager says he will do one thing but morphs into doing another).
Obviously Smith has a completely different approach.
As this is PH, when condifions are bad I will rely on my Range Rover, when they are great my Ferrari comes into its own.
Two completely different approaches to motoring, but having both gives me the best of both worlds.
A rather crude analogy, I know, but it highlights my point.
For those that are interested Monevator is a useful resource.
https://monevator.com/factor-investing-bad-years/
To use the car analogy, something like a sporty SUV (can't believe I mentioned that on a car forum
)BlackG7R said:
Derek Chevalier said:
Bogle and Terry have complete opposite investing styles?
Yes I realise that, and although I trust John Bogle and understand his philosophy, I also find Terry Smith and his approach very convincing . My only reservation with Terry Smith is the charges, and the possibility his "style" may go out of fashion. So the core of my SIPP and ISAs are in low cost Vanguard funds, with the remainder in Fundsmith.
That said, most people that tilt to a style tend to go in the other direction to Terry (small cap value) - hence why the last decade has been so poor for them (and Fundsmith has done so well).
https://alphaarchitect.com/2020/06/02/how-i-explai...
Derek Chevalier said:
Agreed that you could have a bit of both but those that travel down the passive route and want to add a bit of style "spice" tend to buy factor funds rather than paying for an active fund manager, reducing costs and removing the risk of the fund manager changing course.
The thing is, they don't.Last year the 5 largest funds for inflows were 3 Vanguard Life Strategy funds, together with Fundsmith and Lindsell Train.
Glad we can agree you can have a bit of both (passive and active). Not everyone wants the same thing!
The thing is you are fully committed to a particular approach (passive) and I am open to both (passive and active).
That doesn't make one of us right and one of us wrong.
You can't state things that are not true though. Factor funds are in their infancy (hardly known about by most) and are, in effect, market judgement calls (something you advocate against). Even Bogle was very sceptical about them.
Anyhow, different people like different approaches or a combination of approaches. This can be a very good thing either on a long term basis or just until they find their feet and work out what suits them best.
Have a great weekend!
JulianPH said:
Derek Chevalier said:
Agreed that you could have a bit of both but those that travel down the passive route and want to add a bit of style "spice" tend to buy factor funds rather than paying for an active fund manager, reducing costs and removing the risk of the fund manager changing course.
The thing is, they don't.Last year the 5 largest funds for inflows were 3 Vanguard Life Strategy funds, together with Fundsmith and Lindsell Train.
Glad we can agree you can have a bit of both (passive and active). Not everyone wants the same thing!
The thing is you are fully committed to a particular approach (passive) and I am open to both (passive and active).
That doesn't make one of us right and one of us wrong.
You can't state things that are not true though. Factor funds are in their infancy (hardly known about by most) and are, in effect, market judgement calls (something you advocate against). Even Bogle was very sceptical about them.
Anyhow, different people like different approaches or a combination of approaches. This can be a very good thing either on a long term basis or just until they find their feet and work out what suits them best.
Have a great weekend!
Factor funds have been around for decades- Dimensional, which is one of the biggest, has been around since 1981 with circa $450bn AUM, admittedly 1/10 the size of Vanguard but when you consider they tend to only be available through the adviser community it's a pretty big outfit.
Agreed on Bogle being sceptical, the problem is, as with all "edges" is that as soon as the market finds out they tend to disappear.
I'm genuinely not wedded to a passive approach, I know of people that are able to exploit inefficiencies in the market and do very well out of it, but these are firms that a retail investor doesn't have access to.
Always open to discuss examples of fund managers with an edge in the retail space.
And yes, agreed people need to find their feet, and sometimes the best way to learn is by making mistakes (as I'm sure we all have on our investing journey).
Have a great weekend too
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