When should I go from DIY to managed SIPP?

Crystal_Pixie

So bit of background. Female, 46 and 40% tax payer with a good final salary pension in surplus. I am hoping to use this as my main pension at 60.


I don't have a mortgage and little debt.


However, in my working life I have accrued small pensions in different companies which I managed to put together in a HL SIPP in 2013. At the time it wasn't worth all that much so I started contributing £100 a month increasing with inflation each year as a way of reducing my tax bill.

With a bit of homework I set up my own portfolio which I haven't really touched in five years. I only really look at this fund a couple of times a year to see if any funds need rebalancing.

My question is this as, at what point should I think about seeking some financial advice on how to manage this portfolio? It is now sat at around £55k and I am thinking that I really should be taking this a bit more seriously! I know you can't predict markets but even I have noticed markets have become a bit more volatile and perhaps I might have to think about my appetite for risk.


I wouldn't say my knowledge of investing was all that good but I am seeing this pot as maybe a potential way of retiring a couple of years earlier than I planned if I increase contributions.

dunstonh

When should I go from DIY to managed SIPP?

Its a personal decision. Some people DIY all their life. Some people use an adviser all their life. Some do both at different points. It is very much up to you.

I would say that at your current value, it wouldn't be that cost effective yet.

I know you can't predict markets but even I have noticed markets have become a bit more volatile and perhaps I might have to think about my appetite for risk.

They havent been that volatile. A minor drop recently but nothing that is unusual.

Alexland

For what you have achieved so far it doesn't sound like you need to pay for advice now. I assume you have been claiming the additional tax relief on your SIPP contributions via self assessment?

At £55k you are giving around £250 per year to HL in platform fees. Have you considered moving it to Cavendish (0.20% cheaper) and investing in a single mixed asset fund such as Vanguard LifeStrategy, HSBC Global Strategy or Blackrock Consensus in accordance with your volatility tollerence? You almost have enough that a fixed price platform such as Halifax Share Dealing would be advantageous. Consider this option in a few years or now if you going to increase your contribution rate.

Do you have a view on if you will be buying an annuity for guaranteed income for life or going into drawdown? If you are considering an annuity (although you already have some guaranteed income from you DB scheme) you might want to be a bit more cautious in the lead up to your retirement commencing.

Alex

Crystal_Pixie

Thanks for your reply Alexland.


I have been claiming my tax back yes and intend on putting more into this SIPP now.


I am aware that HL are one of the more expensive platforms and I realise the more I have in my pot the more I am paying in fees. However, HL do have a lot of advice and a very good website which has helped me start up my portfolio in the first place.


I may do a review of platforms and see which is the best value V customer service.


Your comments on funds I will take on board. I do have some trackers in my portfolio as well as some recommended funds that have done really well. However, I am always open to recommendations.


I wasn't planning on buying an annuity with this pot - as my DB scheme has the potential of giving me a good core pension. However, I never thought this pot would build quite so quickly - £55k seems quite a bit of money to risk now.

Crystal_Pixie

dunstonh wrote: »

Its a personal decision. Some people DIY all their life. Some people use an adviser all their life. Some do both at different points. It is very much up to you.

I would say that at your current value, it wouldn't be that cost effective yet.




They havent been that volatile. A minor drop recently but nothing that is unusual.

I am sure you are right. Not having a lot of experience of investing it just seems like there is more volatility in the market.

Saying that I have used it to buy more shares when there has been dips and troughs.

LHW99

Don't forget that you can look at funds etc on the HL website without actually having an account with them.

Alexland

LHW99 wrote: »

Don't forget that you can look at funds etc on the HL website without actually having an account with them.

I recently opened up a HL account to transfer my LISA (got bored of waiting for a transfer incentive) from Nutmeg and I still struggle to see why people rate their website so highly. I will continue to use the AJ Bell quickrank tools.

Alex.

LHW99

Alexland wrote: »

I recently opened up a HL account to transfer my LISA (got bored of waiting for a transfer incentive) from Nutmeg and I still struggle to see why people rate their website so highly. I will continue to use the AJ Bell quickrank tools.

Alex.

Everyone to what suits them I suppose. I have had an ISA with AJ Bell for years, but never really liked their research section. I have tended to use trustnet, or HL when I had a SIPP with them, and still do use the HL site occasionally

stoozie1

Have you made a prediction of where your DB and sipp will likely be at 60 for LTA purposes?