Transfer Stakeholder to SIPP?

jampratt

Hi Im thinking of switching my private stakeholder pension with Standard Life to a SIPP with AJ Bell. Im 41 and the Pension pot currently stands at 54k. I understand a SIPP gives you a greater range of investments and flexibility.

I dont have a fixed income as im self employed so make sporadic payments into the stakeholder. Is 54k at age 41 a relatively decent pot?

dunstonh

. I understand a SIPP gives you a greater range of investments and flexibility.

It does. However, it comes with reduced FSCS protection and no due diligence carried out on the investments. You take control of the research and due diligence. You can put some really duff stuff inside a SIPP. With freedom comes responsibility The S for Self really means it.

jampratt

My dad was an IFA so I have a little knowledge and im becoming more confident making my own investments and there are people I can ask for informal advice. Plus ive moved a s+s isa to AJ Bell and could therefore have both in the same place. But I also like the ease of the stakeholder. I wasnt aware the SIPP had less protection, can you elaborate a little? TIA

Albermarle

Pensions held with an insurer ( like Standard Life) have 100% FSCS cover in case of fund failure, fraud etc . Whilst a SIPP is covered up to £50K , soon to become £85K I think.
However the general consensus on the forum is that a failure or fraud in a mainstream SIPP is highly unlikely .
Of course you will know you are not covered for normal investment losses in either .
Before moving I suggest you check charges between the stakeholder and a sipp ( when invested in very similar/same funds.
£54K is a bit low for your age but plenty of time to catch up.

jampratt

So I decide to tranfer to a SIPP with AJ bell. Current pot 55.5K. I am thinking of investing in the current funds..

15.5K Fundsmith Equity Acc
10K Latitude Horizon
10k UK Buffettology Institutional
10K Lindsell Train Global Equity
10k Lindsell Train Uk Equity

Opinion?

I also have around 24k in SS Isa and 30K Emergency/Float (Spread out across current accs regular savers etc)

jampratt

jampratt wrote: »

So I decide to tranfer to a SIPP with AJ bell. Current pot 55.5K. I am thinking of investing in the current funds..

15.5K Fundsmith Equity Acc
10K Latitude Horizon
10k UK Buffettology Institutional
10K Lindsell Train Global Equity
10k Lindsell Train Uk Equity

Opinion?

I also have around 24k in SS Isa and 30K Emergency/Float (Spread out across current accs regular savers etc)

After investing in the above funds in my SIPP the value is currently around 60k. I now have a spare 3k or so that im looking to put into the SIPP. Im thinking of maybe adding Vanguard LS 80, also maybe buy some BAE shares or maybe just top up the 2 Lindsell Funds and Fundsmith. Opinions welcome??

LHW99

Have you tried putting the portfolio into the Morningstar tools and looking at geography, overlap etc? You could then see what happens if you add one or other of your choices
http://tools.morningstar.co.uk/uk/xray/editholdings.aspx?LanguageId=en-GB

SonOf

jampratt wrote: »

After investing in the above funds in my SIPP the value is currently around 60k. I now have a spare 3k or so that im looking to put into the SIPP. Im thinking of maybe adding Vanguard LS 80, also maybe buy some BAE shares or maybe just top up the 2 Lindsell Funds and Fundsmith. Opinions welcome??

Your spread seems entirely random in terms of structure. It looks like you are fashion investing and stick chunks into it without having an overall strategy.

What is the methodology behind your selection?

cloud_dog

jampratt wrote: »

After investing in the above funds in my SIPP the value is currently around 60k. I now have a spare 3k or so that im looking to put into the SIPP. Im thinking of maybe adding Vanguard LS 80, also maybe buy some BAE shares or maybe just top up the 2 Lindsell Funds and Fundsmith. Opinions welcome??

I think you need to consider your strategy a little more. As mentioned use the x-ray tool but to some degree the information the tool produces is useless unless you have an idea of your investment strategy and risk profile and asset allocation. Commenting on possibly using VLS80 or BAE shares or Lindsell/Fundsmith does indicate that you do not have a clear understanding of what you are looking to achieve.

It is difficult (impossible) for people to comment on your options as we really do not have any insight in to your risk profile.

As an example the OH SIPP has slightly less than yourself and is currently invested in 3 investments, and TBH I have considered moving them all in to a single fund (for example HSBC Global Strategy - Dynamic; similar but different to VLS80)

jampratt

Thanks for the replies guys. Im a novice. My dad is/was an IFA and firstly recommended I transfer my stakeholder to an AJ Bell SIPP. After doing that and asking him to advice on how to invest, he gave me a handful of funds to consider. After doing a bit of research with my limited knowledge I decided on the said funds. Im 41 so looking for long term growth and being still fairly young have time to ride out the peaks and troughs. Maybe I need to learn a lot more before investing further!

Also I cant seem to use the xray tool, I enter the ISIN numbers and % allocation and it just keeps saying some holdings not selected from the drop down list..

cloud_dog

As an example... I don't want too much exposure in the UK (personal preference for many reasons) but I would prefer less than 10% to be in the UK, and this is why at the moment we are primarily invested in global funds. I do not need to have a large exposure to bonds (lowers volatility), my wife on the other hand would probably feel much more comfortable with much less volatility than myself so, her investments are in less volatility vehicles. With the current set up, in addition to the global general theme, we have specific exposure to global smaller companies and global emerging markets. At some point I will likely gain or increase our exposure to property but not at the moment.

So for me I'm probably at the very least an 85/15 sort of investor (85% equities / 15% bonds; am all equities atm) and my wife is likely a 60/40 at the very most.

If I were to pick one particular fund for my wife it would probably be HSBC Global Strategy Balanced. For me it might be HSBC Global Strategy Adventurous.

Please don't take this as any sort of guidance. Part of the reason why I can take a more volatile approach is that over 85% of our pension income will be from secure sources (DB, SP, CARE). If the majority of my retirement pot was purely investment based then I am fairly certain I would be looking for less volatility, and hopefully less risk.