Hargreaves & Lansdown SIPP for newbie

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  • MonroeM
    MonroeM Posts: 174 Forumite
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    dunstonh wrote: »
    What volatility rating are you aiming for with that?
    The global property tracker increases the risk (as its property share and not physical property).

    Why strategic bonds? Things appear to be moving away from strategic bonds at this point in the cycle. So, what is attracting you to them and not other bonds?

    I'm fine with a 7/8 risk strategy something like a VLS80?

    The global property tracker fund is Blackrock but what is the difference between a property share and physical property?

    I thought strategic bonds have a strategy but I would also consider International Corporate Bonds?
  • Linton
    Linton Posts: 17,173 Forumite
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    MonroeM wrote: »
    I'm fine with a 7/8 risk strategy something like a VLS80?

    The global property tracker fund is Blackrock but what is the difference between a property share and physical property?

    I thought strategic bonds have a strategy but I would also consider International Corporate Bonds?

    Property company shares are quoted on say the FTSE and will go up and down with the market. So the price of a fund owning shares in property companies will be quite strongly correlated with trackers in the same geography. Funds owning physical property are priced according to the value of the property rather than according to the operation of the share market. The value of the property will be based on the rent the property can command and will be reassessed by a chartered surveyor from time to time. So the prices of direct property funds are very much more stable than those of indirect funds. This provides real diversification.

    Look at the funds in the property sector on Trustnet. Some are classed as fairly high risk, others are pretty low risk - that's the difference.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Remember also that stock markets are at record highs.
    If you're thinking of buying into funds now you have to calculate the chances of the bull market continuing or some correction in the short to medium term.
    There are some interesting political times ahead,notably Trump and Brexit,which have the potential to cause havoc in the markets.
  • Linton
    Linton Posts: 17,173 Forumite
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    Deleted_User wrote: »
    Remember also that stock markets are at record highs.
    If you're thinking of buying into funds now you have to calculate the chances of the bull market continuing or some correction in the short to medium term.
    There are some interesting political times ahead,notably Trump and Brexit,which have the potential to cause havoc in the markets.

    How do you do that?
  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    Remember also that stock markets are at record highs.

    Not all stockmarkets are. And if you factor inflation into it, then most are not at record highs in real terms.
    If you're thinking of buying into funds now you have to calculate the chances of the bull market continuing or some correction in the short to medium term.

    Doesnt matter when you invest. A crash could happen the week after you invest. You either accept that or if you cant then it means you dont have the risk profile with the investments you are looking at.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • MonroeM
    MonroeM Posts: 174 Forumite
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    Linton wrote: »
    Property company shares are quoted on say the FTSE and will go up and down with the market. So the price of a fund owning shares in property companies will be quite strongly correlated with trackers in the same geography. Funds owning physical property are priced according to the value of the property rather than according to the operation of the share market. The value of the property will be based on the rent the property can command and will be reassessed by a chartered surveyor from time to time. So the prices of direct property funds are very much more stable than those of indirect funds. This provides real diversification.

    Look at the funds in the property sector on Trustnet. Some are classed as fairly high risk, others are pretty low risk - that's the difference.[/QUOTE

    Thank you That is helpful I will look at some property funds on Trustnet as you suggested.

    Any points of reference for bond funds either passive or active?
  • MonroeM
    MonroeM Posts: 174 Forumite
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    MonroeM wrote: »
    Linton wrote: »
    Property company shares are quoted on say the FTSE and will go up and down with the market. So the price of a fund owning shares in property companies will be quite strongly correlated with trackers in the same geography. Funds owning physical property are priced according to the value of the property rather than according to the operation of the share market. The value of the property will be based on the rent the property can command and will be reassessed by a chartered surveyor from time to time. So the prices of direct property funds are very much more stable than those of indirect funds. This provides real diversification.

    Look at the funds in the property sector on Trustnet. Some are classed as fairly high risk, others are pretty low risk - that's the difference.[/QUOTE

    Thank you That is helpful I will look at some property funds on Trustnet as you suggested.

    Any points of reference for bond funds either passive or active?

    I have just been advised that maybe bonds are not a good idea at all at the moment so if your risk status is OK then maybe you are better off with Equities?
  • aj9648
    aj9648 Posts: 1,372 Forumite
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    OP - one potential HL product you may want to look at is the ready made SIPP portfolio - newbie myself and started considering those as well
  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    aj9648 wrote: »
    OP - one potential HL product you may want to look at is the ready made SIPP portfolio - newbie myself and started considering those as well

    If you are going to end up with one of those, you may as well get an IFA to do it for you. No point paying that sort of money for a non-advised solution.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • aj9648
    aj9648 Posts: 1,372 Forumite
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    dunstonh wrote: »
    If you are going to end up with one of those, you may as well get an IFA to do it for you. No point paying that sort of money for a non-advised solution.

    How much does a typical IFA charge?
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