Changing Funds with an L&G SIPP

edinburgher

That's a poor quality article, Warren Buffet did not say invest in the FTSE 100, it is by no means equivalent to the S&P 500.

I completely agree in the effectiveness of a globally diversified basket of index tracking funds, nearly all of our invested monies for retirement are invested in them. Diversification is key, I would never go so overweight on the UK.

jones830

I completely agree in the effectiveness of a globally diversified basket of index tracking funds, nearly all of our invested monies for retirement are invested in them.

That's interesting information edinburgher - thank you.

dunstonh

“My advice to the trustee could not be more simple: put 10pc of the cash in short-term government bonds and 90pc in a very low-cost S&P 500 index fund.”
I've followed that advice and so far, it's been OK when a little common sense is applied.

That would probably explain the short term improvement in returns. 90/10 is higher risk than the average UK consumer. Most advisers would not have many clients with that level of risk being taken. The vast majority would be around the 40-80% equity range. Plus, they would be diversfied globally.

Buffet's comments were to US investors. They dont have to worry about currency fluctuations as they are in the US. You are not. Plus, US taxation on funds is different to UK taxation. There is a good reason why an S&P tracker makes sense for a US citizen but does not make sense for a UK resident.

It also should be noted that Buffet does not follow what he tells others with his own investments.

You said earlier that you were tracking the FTSE (although you dont say which one - hopefully not the 100). Now you are saying you are not in a FTSE tracker. You seem to be saying you track the S&P500 (as you followed a comment in an article aimed at US citizens). So, what is it that you are in?

The FTSE100 is not even close to being comparable to the S&P500. The issue is not whether you use trackers or not. It is where you invest. There are trackers in most sectors and there are multi-asset funds that are made up of trackers.

jones830

You said earlier that you were tracking the FTSE (although you dont say which one - hopefully not the 100). Now you are saying you are not in a FTSE tracker.

Don't shoot the messenger dunstonh, I was just showing some comments re trackers from Mr Buffet and how they were interpreted by The Telegraph for UK investors.
My original question was why it took so long to swap funds. I now have an answer. I also said that I am in cash. I was partly in a UK All-share tracker which has performed well. I am now thinking about going forward (as edinburgher seems to have done) with a basket of trackers for that part of my fund.

Joey_Soap

OP, if you now have cash, it is an ideal time to transfer your SIPP to one of the low cost on line platforms. You'll find trading much better and easier, I think.

jones830

OP, if you now have cash, it is an ideal time to transfer your SIPP to one of the low cost on line platforms. You'll find trading much better and easier, I think.

Joey Soap - thanks for that, it is certainly the aim I have. The problem seems to be that it doesn't seem so easy to transfer when you are in draw-down having taken 25% and not making further contributions. Unless anyone knows differently.