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  • FIRST POST
    • looknohands
    • By looknohands 19th Mar 17, 12:04 PM
    • 376Posts
    • 163Thanks
    looknohands
    SIPP with no investing experience?
    • #1
    • 19th Mar 17, 12:04 PM
    SIPP with no investing experience? 19th Mar 17 at 12:04 PM
    Hi I am looking into setting up a SIPP, I'm 30 and have no pension, my planned retirement age is 65. I'm a company director and have £20k to invest per year, my initial investment will be £20k.

    I've been researching SIPPs and am becoming more drawn towards this than a personal pension.

    I've no experience in investing but the SIPP is appealing it seems a more exciting and interesting way to invest. I'm aware that investing in this has more risks than a personal pension and have been reading about structuring a portfolio that is right for you aims. I find investment interesting and enjoy researching, another reason I'm drawn towards the SIPP.

    My desired retirement income is £20k per year, and using the pension calculator i've found my total pot may amount to £900k with the investment amounts I mentioned earlier.

    So my reasoning for using a SIPP would be that I can invest in long term funds that have potential for big growth, more risk in my 30s / 40s and possibly grow this pot quicker, leading me to be able to retire a little earlier if they come through. But if the pot didn't grow and the investments were unsuccessful or if some of them even shrunk it's likely I'd still build a pot that meets my desired income.

    I'm just wondering if anyone has built a DIY SIPP with zero experience, am I completely mis-understanding anything? and am I using the SIPP for the right reason? I've spoken briefly to an FA who seemed to think it wasn't worth my while getting their advice unless my portfolio was larger.
Page 1
    • Linton
    • By Linton 19th Mar 17, 12:52 PM
    • 7,489 Posts
    • 7,232 Thanks
    Linton
    • #2
    • 19th Mar 17, 12:52 PM
    • #2
    • 19th Mar 17, 12:52 PM
    Almost everybody started their investing career with little or no experience. You are looking to invest steadily for the next 35 years, so you wont be in danger of making a life-changing mistake in the first few years. If you start off simply with one or two unexciting funds that cover a very broad range of underlying investments by the time you have say £80K in your pot you will either be investing with confidence or have enough money to interest an IFA.
    • LHW99
    • By LHW99 19th Mar 17, 2:06 PM
    • 670 Posts
    • 497 Thanks
    LHW99
    • #3
    • 19th Mar 17, 2:06 PM
    • #3
    • 19th Mar 17, 2:06 PM
    Does the £20k include state pension, or not?

    If it does, then you would be looking at a smaller 'pot' requirement
    • MoneySavingUser
    • By MoneySavingUser 19th Mar 17, 2:26 PM
    • 1,587 Posts
    • 635 Thanks
    MoneySavingUser
    • #4
    • 19th Mar 17, 2:26 PM
    • #4
    • 19th Mar 17, 2:26 PM
    I'm a company director and have £20k to invest per year, my initial investment will be £20k.
    Originally posted by looknohands
    You may be better off having your company make the contributions as employer contributions than doing them personally. Talk to your accountant.
    • BLB53
    • By BLB53 19th Mar 17, 4:36 PM
    • 1,002 Posts
    • 808 Thanks
    BLB53
    • #5
    • 19th Mar 17, 4:36 PM
    • #5
    • 19th Mar 17, 4:36 PM
    I'm just wondering if anyone has built a DIY SIPP with zero experience, am I completely mis-understanding anything? and am I using the SIPP for the right reason? I've spoken briefly to an FA who seemed to think it wasn't worth my while getting their advice unless my portfolio was larger.
    You do not need experience imho, just a bit of common sense and the ability to stick with your plan over the long term - particularly when the markets get volatile.

    For a basic diy approach to investing, have a read of the likes of Monevator (passive investing) http://monevator.com/category/investing/passive-investing-investing/ and diy investor (pension articles) http://diyinvestoruk.blogspot.co.uk/p/pension.html and maybe read a couple of books such as Tim Hale's 'Smarter Investing' and Andrew Craig's 'How to Own the World' and you will not go too far wrong.
    "A low-cost index tracker is going to beat a majority of the amateur-managed money or professionally managed money" Warren Buffett
    • TheTracker
    • By TheTracker 19th Mar 17, 5:12 PM
    • 1,040 Posts
    • 1,036 Thanks
    TheTracker
    • #6
    • 19th Mar 17, 5:12 PM
    • #6
    • 19th Mar 17, 5:12 PM
    Yes, a SIPP would be fine in your circumstances. My investment experience started as a company director with a SIPP. By no means would I call them "interesting" or "exciting", indeed I'd try to avoid associating words or stifle emotions like that with investing. Be comfortable with boring. As you probably already know, have your company make contributions directly.
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