Newbie looking for some advice please - thank you

atush

cima2015 wrote: »

Hi JamesD - thank you so much for the information. Yes I guess I am concerned too that I put in my 40K and then see it lose value because I don't understand all the funds and options. I guess it is straight pension if one wants an easy life and minimum input or a SIPP if one is prepared to learn and try and get better growth. Thank you again - most helpful

Think of it this way.

Your 150K is losing ground, most likely and has to inflation while you built the pot. Have you lost sleep over that?

Your 40K in a pension costs you only 32K (actually less for the first 8 K as that will get 40% tax relief on that). So you could lose over 8K of your pension money in a downturn before you would actually lose any of your own cash. Does that sound like it would help you sleep?

In any case, every study of investments has shown that equities outperform cash and properties and other assets over periods of decades. Despite the ups and owns involved. AS you only lose if you sell after drops in a panic.

So get to Cavendish online or HL and open a PP immediately to pay in at least 8K per year. but as James said, i'd put in more using your 150K pot of cash.

If markets really make you nervous, drip feed money into equities monthly rather tha using a Lump sum if that will help you sleep. Look up pound cost averaging which explains how this can make you money when markets fall.