£200k SIPP

Dark_Sunday

IFA advised my risk profile is apparently 7/10 & £200k pot should be invested for 10 to 15 years in SIPP as follows:
50% - Vanguard LifeStrategy 100% Equity
50% - Brewin Dolphin MPS Global Equity

Any comments ?

MoneySavingUser

Who/what is F.I.?

TrustyOven

Dark_Sunday wrote: »

50% - Brewin Dolphin MPS Global Equity

Cant find this if I google search this, and it's not appearing on Trustnet or Morningstar.

Perhaps it's not an issue, but for me, it'd be ringing alarm bells.

BobQ

TrustyOven wrote: »

Cant find this if I google search this, and it's not appearing on Trustnet or Morningstar.

Perhaps it's not an issue, but for me, it'd be ringing alarm bells.

It is part of their Managed Portfolio Service

https://www.brewin.co.uk/financial-advisers/managed-portfolio-service

Quite vague on what it is invested in...... but it seems to be their highest risk option out of 6

ETA On further investigation, it does say what its invested in - seems to be a fund of funds mostly UK/US equities (Fidelity Index Funds and Vanguard)


https://www.brewin.co.uk/~/media/Files/B/Brewin-Dolphin-Corp-V2/literature-library/mps/factsheets/2017/march/mps-factsheet-passive-global-equity.pdf

ermine

Dark_Sunday wrote: »

F.I. advised my risk profile is apparently 7/10 & £200k pot should be invested for 10 to 15 years in SIPP as follows:
50% - Vanguard LifeStrategy 100% Equity
50% - Brewin Dolphin MPS Global Equity

Any comments ?

Obvious one is why are you paying IFA servicing fees to buy a range of passive index funds you could DIY cheaper.

http://monevator.com/category/investing/passive-investing-investing/

The return post inflation on equities is ~5% p.a over the long run.. Pay an extra 1% to an adviser and you're eating a 20% income tax. It's a bit rough to be doing that on passive funds where the whole point is low costs. You could replicate the BD fund by taking the factsheet and buying the mix yourself on a low-cost platform. Or you could run with a combination of VGLS100 and VWRL.

In the end you have the greatest interest in making your money perform

maximumgardener

maybe you should seek a second and even a third opinion from an IFA ? (not an FA who may be tied).

an IFA should look at your whole picture
i.e. all income & investments (not just the SIPP bit) and good IFA's are worth seeking out (IMO)

up to you whether that is right route for you as maybe you wish to DIY ??

Dark_Sunday

I should have mentioned IFA only getting fee for approx. half of the total pot as it's from a DB transfer, so I'm only gonna put this 50% to these IFA advised funds & just keep the other 50 % where they are just now as who knows what volatility (if any) lies ahead with: French General Election, UK General Election, Sturgeon's continual sabre rattling, President Trump, North Korea, German General Election, Syria, Russia, Brexit, Terrorist Attacks, etc., etc.

dunstonh

s who knows what volatility (if any) lies ahead with: French General Election, UK General Election, Sturgeon's continual sabre rattling, President Trump, North Korea, German General Election, Syria, Russia, Brexit, Terrorist Attacks, etc., etc.

You mean the same unknown times we have had forever? Cold war, Korean war, Vietnam, Falklands, financial crisis occurring on average once every 7 years etc.