Potential portfolio analysis

peterg1965

hyperhypo said:

Peter, interested in your post as i have similar task to sort with an almost identical amount of savings in an ex works DC scheme, which i'm in process of transferring out to Fidelity. Can i ask why you are needing to commit within a six week window ? 
Also have a not dissimilar  mix ..although dominated by a single VLS40 fund rather than two, and the BG Managed Fund, plus the diversified version of the RL fund. 
Difference is that i will need to commence drawdown in 4 years time.
I'm aiming to simplify my short set of funds using a mix of cash, Blackrock MyMap 3 and vanguard VLS40 for short to medium term, and holding on to the BG Managed and the RL funds for longer term. 
If i'm being honest i don't really know what i'm doing with it..i have been tempted for time being to move the lot something like a Vanguard Target 2020, whilst i validate my strategy. With simplicity the key.
And as others have comented these broad mix of funds have a high uk bias.
I know what i'd like from it ....aspirational 3% commencing in four years time...but i've found making the transition from acc to inc 
much more difficult than i assumed.  I'd be prepared to pay for some advice too, but have been unable to find anyone , rather than wasn't wanting to take £2k as a gatekeeper to a Prufund, or tied to some other institution...willing to provide some transactional advice.
So interested to hear how you go ....

Hyperho, thanks for the post.

Why six weeks?  Currently my SIPP is in InvestAcc Minerva SIPP in fixed rate deposit accounts, these all mature by mid October, so I will have £255,000 sat in cash, earning zero interest in the Minerva SIPP. Hence the 6 weeks, as I dont want to stay out of the market for a minute longer than necessary.

I am 55 in two weeks time, so my intention is to crystallise the £255k, take the 25% PCLS (i have need of that money) and then transfer the £191,500 DD pot to a Fidelity SIPP - I am going to ask HL is they will drop their charge from 0.45% to match Fidelity at 0.35%, but dont hold out much hope. I will then invest along the lines of what I have posted (in Acc funds where available) in this thread with zero income being taken to preserve my AA.  I dont see myself needing to touch this pot for at least 8 years - 3 years until I retire, them I will use the DD pot from my DC occupational scheme and my SIPP which i will continue to contribute to. The investment in my DC pot are limited to the Schemes Standard Life funds (currently £61500 and contributions are £950/month), but i will invest the ongoing SIPP contributions (a further £1500/month) into a range of funds (tbc).  on Retirement (Oct 23 is the plan), combine the DC and SIPP - this should be in the range of £150-£160k, take the PCLS and then drawdown the remaining c£120k over 5 years at £25k pa.  At this point I will have probably used my 100% LTA, as I have a £36k Armed Forces pension alreday in payment since 2015.

Then, circa end of 2028, i will start to drawdown on the main SIPP drawdown pot which could have grown to c£300k by then. I will then continue to drawdown £25k/year until Sep 2032 (SP age), then reduce to £10k pa.  I have need of a significant income as I still have a large outstanding mortgage to pay until 2036 (all part of the plan of course  ) I am content to deplete my funds over the following 15-20 years, then reliance on my Forces pension and SP, with the mortgage gone by then, this shouldnt be a problem.  I think i am in a fairly decent position overall.

I suppose this is almost a 'bucket' method of drawdown.

So, i guess as far as investments go, i can afford to be on the moderate risk side of things (as opposed to ultra cautious), but not venturing into the adventurous category.  I like the mix of VLS/BG/RL funds, as they give approx 35% bonds and 65% equity, which i am comfortable with, but I am scrtaching my head a bit on the high % of UK exposure - is this really a problem?  I added a couple of Global funds (Fundsmith and the Fidelity Tech) slightly more risky, buy they have been good past performers and slightly reduce the UK %.

Jackson00

peterg1965 said:

hyperhypo said:

Peter, interested in your post as i have similar task to sort with an almost identical amount of savings in an ex works DC scheme, which i'm in process of transferring out to Fidelity. Can i ask why you are needing to commit within a six week window ? 
Also have a not dissimilar  mix ..although dominated by a single VLS40 fund rather than two, and the BG Managed Fund, plus the diversified version of the RL fund. 
Difference is that i will need to commence drawdown in 4 years time.
I'm aiming to simplify my short set of funds using a mix of cash, Blackrock MyMap 3 and vanguard VLS40 for short to medium term, and holding on to the BG Managed and the RL funds for longer term. 
If i'm being honest i don't really know what i'm doing with it..i have been tempted for time being to move the lot something like a Vanguard Target 2020, whilst i validate my strategy. With simplicity the key.
And as others have comented these broad mix of funds have a high uk bias.
I know what i'd like from it ....aspirational 3% commencing in four years time...but i've found making the transition from acc to inc 
much more difficult than i assumed.  I'd be prepared to pay for some advice too, but have been unable to find anyone , rather than wasn't wanting to take £2k as a gatekeeper to a Prufund, or tied to some other institution...willing to provide some transactional advice.
So interested to hear how you go ....

 Why six weeks?  Currently my SIPP is in InvestAcc Minerva SIPP in fixed rate deposit accounts, these all mature by mid October, so I will have £255,000 sat in cash, earning zero interest in the Minerva SIPP. Hence the 6 weeks, as I dont want to stay out of the market for a minute longer than necessary.

I am 55 in two weeks time, so my intention is to crystallise the £255k, take the 25% PCLS (i have need of that money) and then transfer the £191,500 DD pot to a Fidelity SIPP - I am going to ask HL is they will drop their charge from 0.45% to match Fidelity at 0.35%, but dont hold out much hope. I will then invest along the lines of what I have posted (in Acc funds where available) in this thread with zero income being taken to preserve my AA.  I dont see myself needing to touch this pot for at least 8 years - 3 years until I retire, them I will use the DD pot from my DC occupational scheme and my SIPP which i will continue to contribute to.

A bit of info, Fidelity are offering cashback for transfers to them up until the 27th November, I believe that they prefer to receive uncrystallised transfers to reduce complications.  

For your stated value the cashback would be £500, something to consider.  

   

https://www.fidelity.co.uk/transfer/#accordion-a1d98c49

peterg1965

Thank you Jackson00, I hadn’t seen that offer, Appreciated 👍

AnotherJoe

What made you interested in VLS and it's random selection of Global industry sectors and companies, compared to other similar funds that don't have a pretend 25% uk allocation?

hyperhypo

Thank you too Jackson00 , i hadn't seen that either , nor has it been mentioned recently by Fidelity.....

I've just completed my uncrystallised part ...the cash is just available today, but i haven't yet sent off the form for my crystallised element (£170k ish) no income taken so will be asking of them if i qualify too !

BritishInvestor

Deleted_User said:

Not a fan of backtesting over a couple of years.
The “sector” pie chart is confusing. “Equities” make up 3.7%? “Other” makes up almost 50%? 

What is “other” in the first pie chart? 

In general, this looks too complex and kinda pointless. If 5 out of 7 are active funds then tomorrow your splits could be different. You are putting your trust in fund managers, so x raying isn’t all that useful. 

 I don't really understand the upside of looking too much at previous performance of active funds, given that the evidence shows us that it makes some investors make arguably suboptimal decision e.g. purchasing recently "outperforming" funds. 

BritishInvestor

peterg1965 said:

hyperhypo said:

Peter, interested in your post as i have similar task to sort with an almost identical amount of savings in an ex works DC scheme, which i'm in process of transferring out to Fidelity. Can i ask why you are needing to commit within a six week window ? 
Also have a not dissimilar  mix ..although dominated by a single VLS40 fund rather than two, and the BG Managed Fund, plus the diversified version of the RL fund. 
Difference is that i will need to commence drawdown in 4 years time.
I'm aiming to simplify my short set of funds using a mix of cash, Blackrock MyMap 3 and vanguard VLS40 for short to medium term, and holding on to the BG Managed and the RL funds for longer term. 
If i'm being honest i don't really know what i'm doing with it..i have been tempted for time being to move the lot something like a Vanguard Target 2020, whilst i validate my strategy. With simplicity the key.
And as others have comented these broad mix of funds have a high uk bias.
I know what i'd like from it ....aspirational 3% commencing in four years time...but i've found making the transition from acc to inc 
much more difficult than i assumed.  I'd be prepared to pay for some advice too, but have been unable to find anyone , rather than wasn't wanting to take £2k as a gatekeeper to a Prufund, or tied to some other institution...willing to provide some transactional advice.
So interested to hear how you go ....

Hyperho, thanks for the post.

Why six weeks?  Currently my SIPP is in InvestAcc Minerva SIPP in fixed rate deposit accounts, these all mature by mid October, so I will have £255,000 sat in cash, earning zero interest in the Minerva SIPP. Hence the 6 weeks, as I dont want to stay out of the market for a minute longer than necessary.

I am 55 in two weeks time, so my intention is to crystallise the £255k, take the 25% PCLS (i have need of that money) and then transfer the £191,500 DD pot to a Fidelity SIPP - I am going to ask HL is they will drop their charge from 0.45% to match Fidelity at 0.35%, but dont hold out much hope. I will then invest along the lines of what I have posted (in Acc funds where available) in this thread with zero income being taken to preserve my AA.  I dont see myself needing to touch this pot for at least 8 years - 3 years until I retire, them I will use the DD pot from my DC occupational scheme and my SIPP which i will continue to contribute to. The investment in my DC pot are limited to the Schemes Standard Life funds (currently £61500 and contributions are £950/month), but i will invest the ongoing SIPP contributions (a further £1500/month) into a range of funds (tbc).  on Retirement (Oct 23 is the plan), combine the DC and SIPP - this should be in the range of £150-£160k, take the PCLS and then drawdown the remaining c£120k over 5 years at £25k pa.  At this point I will have probably used my 100% LTA, as I have a £36k Armed Forces pension alreday in payment since 2015.

Then, circa end of 2028, i will start to drawdown on the main SIPP drawdown pot which could have grown to c£300k by then. I will then continue to drawdown £25k/year until Sep 2032 (SP age), then reduce to £10k pa.  I have need of a significant income as I still have a large outstanding mortgage to pay until 2036 (all part of the plan of course  ) I am content to deplete my funds over the following 15-20 years, then reliance on my Forces pension and SP, with the mortgage gone by then, this shouldnt be a problem.  I think i am in a fairly decent position overall.

I suppose this is almost a 'bucket' method of drawdown.

So, i guess as far as investments go, i can afford to be on the moderate risk side of things (as opposed to ultra cautious), but not venturing into the adventurous category.  I like the mix of VLS/BG/RL funds, as they give approx 35% bonds and 65% equity, which i am comfortable with, but I am scrtaching my head a bit on the high % of UK exposure - is this really a problem?  I added a couple of Global funds (Fundsmith and the Fidelity Tech) slightly more risky, buy they have been good past performers and slightly reduce the UK %.

How much riskier do you feel Fundsmith and the global tech fund are vs LS80?

peterg1965

As a guide I look at the Trustnet risk scores of each fund. The Fidelity tech fund is the riskiest at 94, Fundsmith 74 and, for comparison VLS80 is 68. The two active funds are probably both 100% equities and the tech fund does have some EM stock in it too.

Audaxer

peterg1965 said:

hyperhypo said:

Peter, interested in your post as i have similar task to sort with an almost identical amount of savings in an ex works DC scheme, which i'm in process of transferring out to Fidelity. Can i ask why you are needing to commit within a six week window ? 
Also have a not dissimilar  mix ..although dominated by a single VLS40 fund rather than two, and the BG Managed Fund, plus the diversified version of the RL fund. 
Difference is that i will need to commence drawdown in 4 years time.
I'm aiming to simplify my short set of funds using a mix of cash, Blackrock MyMap 3 and vanguard VLS40 for short to medium term, and holding on to the BG Managed and the RL funds for longer term. 
If i'm being honest i don't really know what i'm doing with it..i have been tempted for time being to move the lot something like a Vanguard Target 2020, whilst i validate my strategy. With simplicity the key.
And as others have comented these broad mix of funds have a high uk bias.
I know what i'd like from it ....aspirational 3% commencing in four years time...but i've found making the transition from acc to inc 
much more difficult than i assumed.  I'd be prepared to pay for some advice too, but have been unable to find anyone , rather than wasn't wanting to take £2k as a gatekeeper to a Prufund, or tied to some other institution...willing to provide some transactional advice.
So interested to hear how you go ....

on Retirement (Oct 23 is the plan), combine the DC and SIPP - this should be in the range of £150-£160k, take the PCLS and then drawdown the remaining c£120k over 5 years at £25k pa.  

Reading your post I'm just wondering whether your plan is for the above £120k or so to remain invested while you drawdown £25k per year for 5 years from Oct 2023? I would think it would have to be converted to cash or very low risk investments if you want to ensure you are able to drawdown 25k per year for 5 years.

peterg1965

Audaxer, you are correct, the £120k would remain as cash or very low risk investments, or even fixed term deposit accounts, to enable me to draw down the £25k for a 5 year period. Then I will start to drawdown the original £191k drawdown pot