Just sold property in a SIPP - £305k to invest.

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wiltshiregirl69
wiltshiregirl69 Posts: 53 Forumite
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in Pensions, annuities & retirement planning
I have consolidated my SIPPs by selling a property held in one which released around £200k and moved another SIPP (fund) (£105k) which had high charges (circa 3.5%,) all to HL where I have a preexisting SIPP (~£185k) currently invested with fund choices from HLs recommended ones (mainly active ones such as Lindsell Train etc). So I now have one HL SIPP with £185k invested and £305k cash to invest. I would like to try and achieve around £800k - £1million pension pot over the next 7 - 10 years with the maximum £40k pension contributions each year.

I am looking at investing in a Vanguard tracker and potentially moving the whole SIPP to Vanguard when they offer SIPPs later this year with a view to lowering my risk towards retirement and low costs. But any helpful suggestions as to what to do would be very welcome- or to wait and see if this volatility in the markets turns into a more serious correction before investing at all.

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  • AlanP_2
    AlanP_2 Posts: 3,252 Forumite
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    Be aware of the LTA if you think you might get close to £1M.

    General idea is not to try and time the market so just go "all in". Sounds great in theory but when it's your £300k I would think the practice is a bit harder to do.

    Nobody knows where markets will go so maybe investing it over 12, or say 15 months may provide a comfort blanket. Markets could still fall off a cliff in month 16 though.

    What I would say is yours is a nice problem to have. Money is inside pension wrapper and the long term looks like it will be taken care of.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    AlanP wrote: »
    Be aware of the LTA if you think you might get close to £1M.

    Rises by £30k in April 2018 as now linked to CPI.
  • Drp8713
    Drp8713 Posts: 902 Forumite
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    wiltshiregirl69 wrote: »
    I have consolidated my SIPPs by selling a property held in one which released around £200k and moved another SIPP (fund) (£105k) which had high charges (circa 3.5%,) all to HL where I have a preexisting SIPP (~£185k) currently invested with fund choices from HLs recommended ones (mainly active ones such as Lindsell Train etc). So I now have one HL SIPP with £185k invested and £305k cash to invest. I would like to try and achieve around £800k - £1million pension pot over the next 7 - 10 years with the maximum £40k pension contributions each year.

    I am looking at investing in a Vanguard tracker and potentially moving the whole SIPP to Vanguard when they offer SIPPs later this year with a view to lowering my risk towards retirement and low costs. But any helpful suggestions as to what to do would be very welcome- or to wait and see if this volatility in the markets turns into a more serious correction before investing at all.

    With large amounts invested, % based fees are not your friend.

    If you only held ETFs (of which Vanguard do provide) or Investment Trusts your SIPP fee would be capped at £200 with HL. That is 0.04%.
  • Audaxer
    Audaxer Posts: 3,508 Forumite
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    wiltshiregirl69 wrote: »
    I am looking at investing in a Vanguard tracker and potentially moving the whole SIPP to Vanguard when they offer SIPPs later this year with a view to lowering my risk towards retirement and low costs.
    Nearly £500k is a very large amount to invest in the one SIPP, when FSCS protection for SIPPs is only up to a limit of £50k. I know the risk of being affected by a major fraud in the likes of HL or Vanguard is minimal, but I wouldn't keep that amount in the one SIPP or in the one fund within the SIPP.
  • redux
    redux Posts: 22,976 Forumite
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    An online monthly savings calculator shows that with your current funds and adding £40k a year you would reach £1M in 7 years with annual growth of 5%, or in 10 years with 2%.

    So as per posts 2 and 3, it's worth finding out more how the lifetime allowance works. I don't know much myself as I probably don't need to.
  • Oliver1191
    Oliver1191 Posts: 132 Forumite
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    I have consolidated my SIPPs by selling a property held in one which released around £200k

    How did you manage to buy a property with your SIPP?
  • wiltshiregirl69
    wiltshiregirl69 Posts: 53 Forumite
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    Oliver1191 wrote: »
    How did you manage to buy a property with your SIPP?

    You can buy commercial property in a SIPP through specific SIPP providers (not all offer it) - the charges are astronomical but if you are lucky and time it right (not easy obviously) there is the increase in capital value (property) and the reinvestment of the rental income into diversified funds.
  • wiltshiregirl69
    wiltshiregirl69 Posts: 53 Forumite
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    Audaxer wrote: »
    Nearly £500k is a very large amount to invest in the one SIPP, when FSCS protection for SIPPs is only up to a limit of £50k. I know the risk of being affected by a major fraud in the likes of HL or Vanguard is minimal, but I wouldn't keep that amount in the one SIPP or in the one fund within the SIPP.

    I'm happy to take the risk and keep all with HL at the moment as the platform fee reduces to 0.25% from 0.45% for funds over £250k. I've googled last night and Vanguard direct have a platform SIPP fee of 0.15% but don't offer SIPPs yet - if and when they do I think I'll transfer the whole lot there. I'm very unhappy with the level of charges within the industry and the amount that has been removed from my various pension pots over the last 30 years is criminal.
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