My sipp portfolio

whatsup7

I`m 52, looking drawing from my sipp in 3 years
My ifa has set me up in 4 funds equally
3 multi asset and the legal and general uk property 1 accum
is 25% in property too high?
5% premium on the property fund
Any thoughts, thanks

Audaxer

What multi assets funds do you have?

In my opinion 5% seems a high initial fee to set you up with that sort of portfolio, but whether it is too high depends on the actual value of the portfolio.

cfw1994

Presumably your IFA based those on things you had told them: if you now feel that is too high, have a word (that's why you pay an IFA!)

Personally....I don't know. But then I don't have any of my pension funds specifically in property.
Property is a tricky one: Mark Twain said "Buy land; they aren't making any more!", which has some semblance of logic about it...but there are many factors that could play out over the next few years.
I always feel you need to remember that you are not just looking at a 3 year timeline here: assuming you move to drawdown, you would then be investing much for future years (maybe 20-30+)....

AnotherJoe

I'm presuming the OP removed a reference to 5% fee?

Personally 25% in UK property seems much too high to me, many regard their home as enough investment in property and dont have any additional property, but generally I think you'd see about 5% in the "average" portfolio.

And just in UK-only property, well thats a pretty bold bet, what with Brexit looming.

(I know Brexit often gets bandied around as the boogeyman for investments without good cause, but in the case of UK-only property I'd say it's a justified concern.)

Whats the rationale for such a high % ?

It would also make me wonder what the 3 MA funds are and if they are equally idiosyncratic.

dunstonh

is 25% in property too high?

25% is a soft cap that many firms have. i.e. no more than 25%. Personally, none of our current portfolios have property any more than 8%. However, investing is about opinion. If you ask 100 investors/advisers on how they should invest you will get 100 different answers.

The L&G fund has a high initial spread. It is a long term hold (its more expensive than the others at the start but costs less annually - so breaks even over time). it is not suited to a 3 year term unless your drawdown is being funded from the other bits.

whatsup7

cfw1994 wrote: »

Presumably your IFA based those on things you had told them: if you now feel that is too high, have a word (that's why you pay an IFA!)

Personally....I don't know. But then I don't have any of my pension funds specifically in property.
Property is a tricky one: Mark Twain said "Buy land; they aren't making any more!", which has some semblance of logic about it...but there are many factors that could play out over the next few years.
I always feel you need to remember that you are not just looking at a 3 year timeline here: assuming you move to drawdown, you would then be investing much for future years (maybe 20-30+)....

I can’t asked ifa, as i do not use him anymore
Yes hopefully I’ll be investing for 30 or 30 years

whatsup7

The other funds I have are
f and c mgmt lifestyle cautious b net acc
l and g multi index 5
standard life inv myfolio mgd III platform 1

whatsup7

Audaxer wrote: »

What multi assets funds do you have?

In my opinion 5% seems a high initial fee to set you up with that sort of portfolio, but whether it is too high depends on the actual value of the portfolio.

The 5% was just for the property

whatsup7

AnotherJoe wrote: »

I'm presuming the OP removed a reference to 5% fee?

Personally 25% in UK property seems much too high to me, many regard their home as enough investment in property and dont have any additional property, but generally I think you'd see about 5% in the "average" portfolio.

And just in UK-only property, well thats a pretty bold bet, what with Brexit looming.

(I know Brexit often gets bandied around as the boogeyman for investments without good cause, but in the case of UK-only property I'd say it's a justified concern.)

Whats the rationale for such a high % ?

It would also make me wonder what the 3 MA funds are and if they are equally idiosyncratic.

Hi, yes I have reinserted the 5% property set up fee.
His logic was its different from equities,but when I thought about it, I lost confidence in him and split from him

whatsup7

dunstonh wrote: »

25% is a soft cap that many firms have. i.e. no more than 25%. Personally, none of our current portfolios have property any more than 8%. However, investing is about opinion. If you ask 100 investors/advisers on how they should invest you will get 100 different answers.

The L&G fund has a high initial spread. It is a long term hold (its more expensive than the others at the start but costs less annually - so breaks even over time). it is not suited to a 3 year term unless your drawdown is being funded from the other bits.

Thanks for the reply, my drawdown will be from my portfolio of the 4 funds.
I`m thinking about reducing this holding, sort of begrudge doing it as it cost so much but it does seem too high a percentage

whatsup7

For info I am a 4-5 out of 10 on the risk scale