is 4% growth in a SIPP realistic?

mazworld15

BLB53 thank you I will look for that book

mazworld15

dunstonh wrote: »

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?

Thank you am sure you're right gonna be more sensible now

mazworld15

Thrugelmir wrote: »

Did you transfer your DB scheme to the SIPP?

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

I did T not invested the rest yet was 242k in total requested 60k tax free cash got to find good things fir growth for the rest

OldMusicGuy

A second vote for the Edwards book. Read that, and avoid single shares unless you either want to gamble for fun or you really know a lot about the companies and the sector you are investing in.

FYI I spent 40 years in the IT industry, am skilled at reading financial reports and had to analyse the performance of tech companies as part of my job. I do not invest in any single stocks in the tech sector, it's just too risky for my retirement funds IMO. If I was rich enough to have some "play" money I might do it.

mazworld15

I think I should've asked the question before I did anything thank you all £679 down on the shares long term hopefully be ok, lesson learnt no more thanks everyone

System

dunstonh wrote: »

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?

Why would the expected return be lower? The variance would be higher than the optimal portfolio, but the expected return would not. If you randomly select stocks then sometimes you will do better than average and sometimes worse than average. Is a basic knowledge of probability or statistics not required to become an IFA?

JoeCrystal

mazworld15 wrote: »

I think I should've asked the question before I did anything thank you all £679 down on the shares long term hopefully be ok, lesson learnt no more thanks everyone

I thought that you need an IFA to sign off the transfer since the transfer need to go into SIPP that will get advice on what to invest so it beats the benefit from DB pension (I know you can still transfer since you only need an advice rather than positive advice)? Maybe you should have stuck with the DB pension instead and not to worry about investing in the first place.

dunstonh

Economic wrote: »

Why would the expected return be lower? The variance would be higher than the optimal portfolio, but the expected return would not. If you randomly select stocks then sometimes you will do better than average and sometimes worse than average. Is a basic knowledge of probability or statistics not required to become an IFA?

Maybe a basic knowledge of investing would do you no harm if you didn't understand.

System

I notice that once again you do not address my question.

Prism

Economic wrote: »

Why would the expected return be lower? The variance would be higher than the optimal portfolio, but the expected return would not. If you randomly select stocks then sometimes you will do better than average and sometimes worse than average. Is a basic knowledge of probability or statistics not required to become an IFA?

So based purely on probability if you select just a single stock then there is as much chance of having a higher return than the market as lower? How does that equate with the face that most stocks underperform the market and only a few beat it?