Savings position for advice and comments please, SIPP investment imminent

mark55man

well done for just starting.

everyone will have a different view on asset allocation but given you overall situation I don't think a 100% equity, but widely diversified fund is too risky.

Someone once said investment is the art of getting comfortable slowly - so don't try and force it.

Personally, post Brexit - even as a remainer - I'm not avoiding Britain - I think the currency fall is largely done, and I trust British business (not so much the government) to do well both inside and outside the 2 year leave period.

The only country I am not invested in is US - as I cashed out my index fund there following the Brexit currency appreciation and the initial Trump surge. I figure if America does well then the rest of world and UK will do well.

stoozie1

Thank you mark88man.

I was thinking I should add that we have paid off our mortgage and have approx £2k/month to invest or save.

Our outgoings are low (a mean this last 5 months of £1115/pcm) so the cash buffer we need to have is relatively small. I also should have noted that the cash saved against the stooze is now £10k higher than the borrowed cash.

Not sure if this changes the advice. (I think I'll add this to the OP)

I also wonder if I actually can't adot my initial higher risk strategy, as despite having had cash in the sipp for 10 days I can't make myself click to invest! (in VLS 100)

mark55man

Studies have shown that over a long enough period the market increases so in theory its best to put it all in - however there are many who prefer pound cost averageing - effectively spread your investment over the time period. Most people do monthly investment so thats all the choice they got

I would suggest split your lump sum into 12 equal portions (12 * A), then add this to your regular forever savings amount (B) and for the next 12 months invest A+B and after that invest B.

That way you will have a years experience, and if you really dont like the feeling you can bail without putting too much at risk

Pound cost averaging works (so long as you hold to your strategy) because if/when the market goes down you buy more. It costs as a strategy when the market goes up over the period as you would have been better off buying up front