Sipp - To use or not to use an IFA

seb2020

[FONT=&quot]Is there any real benefit (financial or otherwise) in using a regulated Independent Financial Advisor or Financial Planner for the purposes of setting up and running a Sipp investment portfolio?[/FONT]

[FONT=&quot]What are your views on going down the DIY route (if you have the confidence to do so) and use a number of passive diversified tracker funds and managing the Sipp yourself?
[/FONT]
[FONT=&quot]What are your reasons for:-[/FONT]

[FONT=&quot]1/ Not using an Independent Financial Advisor or Financial Planner for the purpose of choosing a Sipp funds portfolio.[/FONT]

[FONT=&quot]2/ Using an Independent Financial Advisor or Financial Planner to choose the Sipp funds portfolio.
[/FONT]

Aegis

If you're happy doing it yourself, including doing the research and monitoring the outcomes, then DIY is fine. Once it gets to a point where it would be catastrophic to lose or you are no longer comfortable looking after it, consider an adviser, if only to ensure discipline with the investment strategy.

dunstonh

Is there any real benefit (financial or otherwise) in using a regulated Independent Financial Advisor or Financial Planner for the purposes of setting up and running a Sipp investment portfolio?

Your cholce should either be IFA or DIY. Forget any option that is an FA.

What are your views on going down the DIY route (if you have the confidence to do so) and use a number of passive diversified tracker funds and managing the Sipp yourself?

Some people do it and are very capable.
Some people do it and make a right mess of it.

You should be focusing on your reasons. Not those of someone else. If you are up for DIY and can do it well then you should pretty much know that and not need to ask here.

Some use IFAs as they dont have the knowledge. Some do it as they prefer to allocate their time on other things.

Albermarle

I expect this question will set off the usual /daily argument about IFA's:(

OldMusicGuy

Very expensive for no discernible benefit IMO. I manage a large SIPP fund myself and am achieving my objectives using a small number of multi-asset funds. I simply cannot abide the thought of a percentage of that SIPP being used to fund something I can do myself. It would amount to a huge amount of money over 30 years.

It's taken me about 5 years to build the confidence and knowledge to do this. The main challenge IMO is actually setting clear goals and understanding your attitude to risk and investing.

The only benefits IMO are if you can't be bothered to do it yourself or you have some really complicated circumstances that really do need specialist advice.

seb2020

OldMusicGuy - Would you mind sharing which "...small number of multi-asset funds..." you chose and why you chose them?

OldMusicGuy

seb2020 wrote: »

OldMusicGuy - Would you mind sharing which "...small number of multi-asset funds..." you chose and why you chose them?

I prefer not to reveal my fund choices in detail. Two reasons:

- Classic newbie mistake is to think the answer is to use someone else's fund ideas. You get sucked into chasing funds around based on someone else's posts/ideas. That's what I used to do. You need to define your own clear objectives and choose the funds accordingly based on your reading.
- IMO there is too much willy waving on forums about fund choices. I don't need a bunch of comments on my fund choices. I have made them, they are long term choices, I don't need anyone else to comment on them.

What I will say is that they come from some (but not necessarily all) of the commonly mentioned multi-asset funds from BlackRock, HSBC, L&G and Vanguard. The investments are spread to give good global diversification and I am holding about a 50/50 equity/bond split (based on analysis in McClung's "Living off your money" book). Also, they are only part of my portfolio (which includes a lot of cash and a bond ladder).

All of this suits my investment objectives which I am pretty certain won't be the same as yours

Albermarle

The commonly mentioned multi asset funds are all quite similar to each other , at the same sort of risk/%equity level . There are some differences ( country weighting for example ) but it is not the same as comparing them with actively managed funds or investment trusts as an example .
Personally I would not stress too much about which provider , more about picking the appropriate risk level for your personal circumstances /preference.

BLB53

If you want to consider DIY with a simple multi asset fund such as Vanguard Lifestrategy or HSBC Global Strategy, it could save you a lot in adviser fees. I suggest get hold of 'DIY Pensions' book by J Edwards which should provide an overview and help you to decide whether you can run your own SIPP.

atush

How much do you intend to invest?

If it is not much, i'd DIY ito a Global Tracker or Multi asset fund along the lines of Vanguard series. Until your pot is north of 20K, not much reason to pay for an iFA.

Stay away from all UK funds and singe shares until you learn about investing.

seb2020

Some good responses so far - Please continue to keep them coming.