Sipp Advice

dunstonh

I've gleaned currently from my research is that bonds are not particularly a good buy at the moment... I'm prepared to be told otherwise!

Nothing is a good buy at the moment. Bonds, when they suffer a crash, suffer a lower level of loss than when equities suffer a crash. Historically, they suffer crashes/declines at different times. Although that is not always the case.

Gilts are not looking that attractive but High Yield Bonds are better. However, they tend to be riskier and that increases the volatility level of the portfolio which you would adjust to keep it in line with your target level.

MPN

dunstonh wrote: »

How does the volatility level of that spread compare to just the VLS80? How does the combined return compare to just the VLS80?
What bonds? Is that gilts, strategic, high yield, standard, global, global high yield?

So are you suggesting it would make more sense just investing the whole lot in the VLS80 and forget about the 40 per cent in the Fidelity World Index and 10 percent in bonds?

dunstonh

MPN wrote: »

So are you suggesting it would make more sense just investing the whole lot in the VLS80 and forget about the 40 per cent in the Fidelity World Index and 10 percent in bonds?

I would just go VLS80 if I was investing that way.

MPN

dunstonh wrote: »

I would just go VLS80 if I was investing that way.

So if you was investing that way but decided to go 100 per cent equities would you go VLS100 or a World Index Tracker?

Also if you had to choose would you go VLS80 or Royal London Sustainable World Trust?

ex-pat_scot

dunstonh wrote: »

I would just go VLS80 if I was investing that way.

Agree. VLS80 "is" the strategy, not "part of" the strategy.


If you hold VLS80 and other bits and pieces, then that's not what a LS investment is for.




Similarly, you could DIY it a bit and do 80% VWRL and 20% global bond (don't know which one, but I'm sure you could find a Vanguard or equivalent one).

dunstonh

So if you was investing that way but decided to go 100 per cent equities would you go VLS100 or a World Index Tracker?

In over 20 years of advising, I have never met a client who is 100% equity. So, I wouldnt want to say which I think it best as I have no recent experience to draw on. Although hypothetically, if 100% equity and simplicity was needed then I would probably pick a personal pension with a global equity (inc UK) fund as that is likely to be the cheapest option and easiest to manage as no cash account within it.

Agree. VLS80 "is" the strategy, not "part of" the strategy.

That is a very good way of putting it. I like that.

Frufru23

ex-pat_scot wrote: »

Agree. VLS80 "is" the strategy, not "part of" the strategy.


If you hold VLS80 and other bits and pieces, then that's not what a LS investment is for.




Similarly, you could DIY it a bit and do 80% VWRL and 20% global bond (don't know which one, but I'm sure you could find a Vanguard or equivalent one).

Makes sense, I should have just stuck with what I had when I first opened the SIPP.

Frufru23

My problem is that I have a really keen interest in most things financial. So, spend (too) much time reading articles, googling, looking at forums etc etc.

I then have ideas about what I should change and then start to implement......

I watched some videos on the Monevator website where the advice was that all you really needed was a low cost Global tracker and a percentage of bonds and to be done with it. Made perfect sense to me, but then I read other comments which suggest one needs to be more diversified.

I should probably just set up a DDM, arrange monthly fund contributions and then throw away the passwords so that I can't mess around with it anymore.

ex-pat_scot

Frufru23 wrote: »

My problem is that I have a really keen interest in most things financial. So, spend (too) much time reading articles, googling, looking at forums etc etc.

I then have ideas about what I should change and then start to implement......

I watched some videos on the Monevator website where the advice was that all you really needed was a low cost Global tracker and a percentage of bonds and to be done with it. Made perfect sense to me, but then I read other comments which suggest one needs to be more diversified.

I should probably just set up a DDM, arrange monthly fund contributions and then throw away the passwords so that I can't mess around with it anymore.

Bingo!






(Apart from the bit about "one needs to be more diversified". Global tracker = fully diversified equities.
You could set up a diversified bond portfolio, but that's what bond funds do.
You could also diversify into different asset classes: commodities (gold yeah!), corporate property, private equity, derivatives... Good luck with that approach, if it floats your boat.)

Frufru23

ex-pat_scot wrote: »

Bingo!






(Apart from the bit about "one needs to be more diversified". Global tracker = fully diversified equities.
You could set up a diversified bond portfolio, but that's what bond funds do.
You could also diversify into different asset classes: commodities (gold yeah!), corporate property, private equity, derivatives... Good luck with that approach, if it floats your boat.)

Gosh, don't even get me started!:rotfl:
(Not to self, erase corporate property, private equity and derivatives from memory)