SIPP, Hargreaves Lansdown and Funds

EdInvestor

DUS wrote: »

No need for a proper calculation, but if you say "regular traders" you´re rougly talking about how many trades a year?

DUS

It will vary depending on the charges at each broker.

atadifficultage

Hi (Sorry if this has been covered on this thread but there are 18 pages of info)

I have a HL SIPP and know it's a good choice for a SIPP but my weakness is that I don't know how to do the research to find the best funds to invest in . In the stock Market turmoil I sold most of the holdings and left the money in cash, mainly because I was terrified of losing it all, but it can't stay in cash as the rate is pathetic. (I'm 51 and have approx £25,000 in it so I really need to get it right) Can anyone recommend any impartial websites to help me get educated, I don't want anything that assumes you have a degree in economics, is the FT worth subscribing to? Thanks

tocsin

atadifficultage wrote: »

Hi (Sorry if this has been covered on this thread but there are 18 pages of info)

I have a HL SIPP and know it's a good choice for a SIPP but my weakness is that I don't know how to do the research to find the best funds to invest in . In the stock Market turmoil I sold most of the holdings and left the money in cash, mainly because I was terrified of losing it all, but it can't stay in cash as the rate is pathetic. (I'm 51 and have approx £25,000 in it so I really need to get it right) Can anyone recommend any impartial websites to help me get educated, I don't want anything that assumes you have a degree in economics, is the FT worth subscribing to? Thanks

I'll jump in as nobody else seems to have done

Last first - the Saturday FT is worth getting - has a personal finance section.

Websites - here is good! All the (non-Red Top) newspapers have personal finance sites, and there's www<dot>thisismoney<dot>co<dot>uk for example.

There are rules of thumb for asset allocation depending on your age, at 51 about half of your total "should" be in bonds, and the rest in more risky investments (share-based unit trusts, shares, commodities) - and then regularly review.

I hope that helps, and that some more informed regulars of this site also jump in!

EdInvestor

Citywire has a useful ranking system for funds and fund managers.

http://www.citywire.co.uk/adviser/fund-and-fund-manager-performance/-/unit-trusts/uk-equity-income/fund-league-table.aspx?CitywireClassID=11&RankModelID=9&TimePeriod=36

You can check rankings up to 10 years,to see consistent pwerformance.

Most people divide their money between sectors, with more or less in higher or lower risk sectors depending on age, attitude to risk etc. With nearly 15 years to retirement you may think you can afford to be fairly high risk in search of better returns for now.

dunstonh

There are rules of thumb for asset allocation depending on your age, at 51 about half of your total "should" be in bonds

There are no rules of thumb on asset allocation as it depends on your personal risk profile, how and when you want benefits and what strategy you are using. To go half into bond at age 51 when you may not be accessing your pension until say age 75 is very premature.

That said, too many people leave themselves 100% equity too long.

carolroy52

Hi everyone
On a different note, but still HL SIPP related, I am due to receive annual income drawdown at the end of this month. If I have it paid into my bank account, and I owe money on a credit card, can the bank sequester the funds in the bank account to offset against what I owe them. Hopefully someone may know the answer. Many thanks. Carol.

dunstonh

can the bank sequester the funds in the bank account to offset against what I owe them.

Yes they can.

butterfly72

Hi, hope this is the correct place to post.

I’ve decided after reading the forums to use my ISA to supplement my pension for when I retire at 60. (now 37) I’m currently paying into a NHS pension and buying additional years. I have been putting £100 a month into a HL ISA and my funds are:

JPM Natural resources 75% :eek:
First State Asia Pacific Leaders 25%

High risk I know, but I’ve been happy with that so far! I’ve decided to drop my £50 a month into the JPM NR fund but keep up the First State fund with £50 p.m. I’m still happy with some risk at this stage in my life.

Now, that leaves me with £50 pm to put into a new fund plus I’ve decided to add another £50, possible £100. And I have a lump sum I can use if I want but TBH I’m haven’t a clue where to stick that. The funds I like are:

Invesco Perpetual High Income £50
M&G Strategic Corporate Bond £100 (or maybe £50 is this one and I could choose another?)

I know that nobody is able to comment on the specific funds but any comments would be greatly appreciated. I’m trying!!

thanks.

jamesd

The bond fund would be the better choice if you're interested in using rebalancing to the original percentage splits to cause money to be taken out of high risk during boom times and put back in at bust times.

Invesco Perpetual High Income would be good as a bit of UK interest for the mix so you won't suffer such large drops when the Pound increases in value.

gaob

I have shares worth around £10,000 in my former employer. I'm currently out of work and approaching the point at which Job Seeker's Allowance becomes means-tested.

I don't want to sell the shares as the price is very low. Are there advantages in putting the shares into a SIPP? My understanding is they would then be CGT and IHT exempt and disregarded as an asset for means-testing but it's not clear if there would be income tax relief.

Any advice appreciated.