is 4% growth in a SIPP realistic?

mazworld15

Hi hope someone can point me in the right direction, is there a thread giving investment models for a SIPP?
180k in total, bought 10k HSBC Shares, 5k in Amazon, Netflix and Apple.
Am 55 wont need income for a few years yet just wondered if there was some sort of model portfolio for people who are not so investment savvy?
The SIPP is A J Bell they have various passive funds that look ok?
Many thanks for any comments

ex-pat_scot

a great starting point is either a world tracker (Vanguard's VWRL is a good choice in my opinion) or a Vanguard LifeStrategy fund.
Depending on your attitude to risk, the VLS 60, VLS 80 or VLS 100 would be a sensible visit and shortlist. (the "60", "80" and "100" refer to the percentage of the fund that is invested in equities).


Your current darts board approach of selecting flavour-of-the-month individual stocks is (a) high risk and (b) unfocused and (c) not terribly well spread geographically / politically.

mazworld15

Thank you will take a look am thinking 5 things at 20% each does that sound about right?

AlanP_2

If you go for a multi-asset diversified option like one of the VLS or L&G multi-asset, or HSBC Global Strategy ranges then I would suggest you put the vast majority in one of them and add 2-4 5% "bits" on the side if you think your choices are going to perform well in the future.

JoeCrystal

mazworld15 wrote: »

Hi hope someone can point me in the right direction, is there a thread giving investment models for a SIPP?
180k in total, bought 10k HSBC Shares, 5k in Amazon, Netflix and Apple.
Am 55 won't need income for a few years yet just wondered if there was some model portfolio for people who are not so investment savvy?
The SIPP is AJ Bell they have various passive funds that look ok?
Many thanks for any comments

Sorry but if you consider yourself not investment savvy, you shouldn't invest in single company shares in the first place. With that amount of money, it may be worth paying for an IFA to review the portfolio. They will be able to come up with an investment portfolio suitable for your need.

Alexland

AlanP wrote: »

add 2-4 5% "bits" on the side if you think your choices are going to perform well in the future.

And then probably watch them go badly and be glad you invested the majority wisely.

Alex

kidmugsy

"is 4% growth in a SIPP realistic?" Looking backwards, yes.
Looking forwards: nobody knows. Looking forwards with that particular portfolio: even equity boosters might admit that they don't know.

ffacoffipawb

kidmugsy wrote: »

"is 4% growth in a SIPP realistic?" Looking backwards, yes.
Looking forwards: nobody knows. Looking forwards with that particular portfolio: even equity boosters might admit that they don't know.

Probably OK if you put a minus in front of it. :eek:

BLB53

Am 55 wont need income for a few years yet just wondered if there was some sort of model portfolio for people who are not so investment savvy?
T

You choices so far are very high risk for someone who is not so savvy. You need to adjust your strategy and I would suggest a globally diverse multi-asset index fund such as Vanguard Lifestrategy would be more appropriate. Select the mix of equities/bonds to correspond to your appetite for risk - maybe the VLS60 would be appropriate.

For learning more on working toward a simple investing plan I suggest get hold of 'DIY Simple Investing' by Edwards.

The passive funds at AJ Bell may be suitable but from January they will have additional charges which would make them expensive for the type of product.

dunstonh

Random hit and hopes lacking any real structure tend to result in lower returns over the long term.

The average UK consumer is cautious. The FCA recently published some research it was doing and found that DIY investors, in general, are not investing well and many are going much higher in risk than they should be or far too low in risk than they should be. Your spread is very high risk. Do you match that high risk in behaviour, knowledge & understanding and capacity for loss?

Thrugelmir

mazworld15 wrote: »

180k in total, bought 10k HSBC Shares, 5k in Amazon, Netflix and Apple.

Did you transfer your DB scheme to the SIPP?

What's the remainder of the £180k invested in.