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  • FIRST POST
    • davieg11
    • By davieg11 16th Dec 16, 10:34 PM
    • 218Posts
    • 92Thanks
    davieg11
    Hargreaves & Lansdown SIPP for newbie
    • #1
    • 16th Dec 16, 10:34 PM
    Hargreaves & Lansdown SIPP for newbie 16th Dec 16 at 10:34 PM
    I have looked at Hargreaves & Lansdown SIPP and they have ' most popular funds in November ', which all look good. Instead of a novice like me having a wild guess, what is the best fund to invest in for the next 20 years?
    Last edited by davieg11; 17-12-2016 at 9:12 AM. Reason: Too much wine lol
Page 2
    • dunstonh
    • By dunstonh 30th Dec 16, 8:27 PM
    • 88,185 Posts
    • 53,395 Thanks
    dunstonh
    I'm not really experienced enough to make comment although I must say that 70 per cent in an all world tracker, 20 per cent in strategic bonds and 10 per cent in a global property tracker sounds good to me? I'm sure the more experienced investors on here can comment further on whether this is a good asset allocation for a pension portfolio?
    Originally posted by MonroeM
    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 am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • MonroeM
    • By MonroeM 30th Dec 16, 8:39 PM
    • 99 Posts
    • 29 Thanks
    MonroeM
    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?
    Originally posted by dunstonh
    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
    • By Linton 30th Dec 16, 10:08 PM
    • 7,915 Posts
    • 7,716 Thanks
    Linton
    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?
    Originally posted by MonroeM
    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.
    • Tom The Great Sebastian
    • By Tom The Great Sebastian 31st Dec 16, 8:27 AM
    • 813 Posts
    • 924 Thanks
    Tom The Great Sebastian
    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
    • By Linton 31st Dec 16, 10:04 AM
    • 7,915 Posts
    • 7,716 Thanks
    Linton
    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.
    Originally posted by Tom The Great Sebastian
    How do you do that?
    • dunstonh
    • By dunstonh 31st Dec 16, 12:01 PM
    • 88,185 Posts
    • 53,395 Thanks
    dunstonh
    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). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • MonroeM
    • By MonroeM 31st Dec 16, 12:07 PM
    • 99 Posts
    • 29 Thanks
    MonroeM
    [QUOTE=Linton;71843602]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
    • By MonroeM 5th Jan 17, 7:50 PM
    • 99 Posts
    • 29 Thanks
    MonroeM
    [QUOTE=MonroeM;71845496]
    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?
    Originally posted by Linton
    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
    • By aj9648 9th Mar 17, 7:10 PM
    • 1,033 Posts
    • 91 Thanks
    aj9648
    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
    • By dunstonh 9th Mar 17, 7:23 PM
    • 88,185 Posts
    • 53,395 Thanks
    dunstonh
    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
    Originally posted by aj9648
    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). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • aj9648
    • By aj9648 9th Mar 17, 8:15 PM
    • 1,033 Posts
    • 91 Thanks
    aj9648
    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.
    Originally posted by dunstonh
    How much does a typical IFA charge?
    • Confuciusone
    • By Confuciusone 10th Mar 17, 3:29 PM
    • 16 Posts
    • 3 Thanks
    Confuciusone
    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.
    Originally posted by dunstonh
    Which ready made SIPP portfolio are you refering to?

    Managed or Master portfolios - Build your own investment portfolio
    • dunstonh
    • By dunstonh 10th Mar 17, 5:14 PM
    • 88,185 Posts
    • 53,395 Thanks
    dunstonh
    Which ready made SIPP portfolio are you refering to?

    Managed or Master portfolios - Build your own investment portfolio
    Originally posted by Confuciusone
    Build your own is fine. You make the choices so its part of DIY. However, the ready made or portfolio funds are expensive options. You dont get the cost benefit of going DIY if you use those. You get an option that is typically more expensive than an advised option without the consumer protection of advised. A jack of all trades, master of none style approach.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • zagfles
    • By zagfles 10th Mar 17, 5:53 PM
    • 11,869 Posts
    • 9,825 Thanks
    zagfles
    Build your own is fine. You make the choices so its part of DIY. However, the ready made or portfolio funds are expensive options. You dont get the cost benefit of going DIY if you use those. You get an option that is typically more expensive than an advised option without the consumer protection of advised. A jack of all trades, master of none style approach.
    Originally posted by dunstonh
    But if you go advised you might end up with some expensive multi-asset fund with advice fees on top, rather than a sensible mix of funds, because (apparently) the adviser needs to cover their backside and can't trust you not to do something stupid! As discussed here http://forums.moneysavingexpert.com/showthread.php?t=5553079

    The HL Portfolio+ is quite expensive because they use HL's multi-manager funds, which have an extra layer of charges. But they're still less than the charges the OP of the above thread was paying for simply getting one multi-asset fund!
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