Thoughts on best way to invest in sipp

Marko125

Linton said:

There is no such things as "best investments", or "best platform".  What you should be looking for is most appropriate investments and platforms.  And you cant decide on platforms untril you have decided on investments. And you cant decide on investments until.......

I would agree very much with most of Mordko's reply.  However it starts too late in the process.  Where you should start is what do you need from your investments? Money and timescale.  When you know what you need you can then come up with a strategy that maximises the chance of getting there.  It is no good just saying maximum return because the way to get very high returns is to take high risks that the money wont actually be there when you need it.

What you have told us is that you want to put £45K now into investments and add £10K/year to get £100K.  If that is the case why are you investing? Especially as I assume you are planning to get another job and work until 55 and then retire.  6 years is a pretty short time for large scale investing, what happens if there is a 50% crash when you are 54? . You will get to £100K at 55 just saving money in a bank account with no risk whatsoever.

I suggest you work out what you really need when and then put sufficient into safer investments to ensure that you really can retire when you want to.  Anything beyond that can be invested at more risk and hopefully higher return.

Thanks and i agree with what your saying. I wanted sipp to top up my DB pension until my state pension at 67.

I was hoping the 100k into sipp over 6 years would grow by around 6 to 10% per annum all going well but like you said possible pitfalls in a market crash if so then i would leave for few years until market recovers and use other savings i have to cover this to top up DB pension.

But as we are all aware who knows how the markets are going to go over the next decade, same as last decade would be great but i can't see that happening as of now.

Linton

Marko125 said:

Linton said:

There is no such things as "best investments", or "best platform".  What you should be looking for is most appropriate investments and platforms.  And you cant decide on platforms untril you have decided on investments. And you cant decide on investments until.......

I would agree very much with most of Mordko's reply.  However it starts too late in the process.  Where you should start is what do you need from your investments? Money and timescale.  When you know what you need you can then come up with a strategy that maximises the chance of getting there.  It is no good just saying maximum return because the way to get very high returns is to take high risks that the money wont actually be there when you need it.

What you have told us is that you want to put £45K now into investments and add £10K/year to get £100K.  If that is the case why are you investing? Especially as I assume you are planning to get another job and work until 55 and then retire.  6 years is a pretty short time for large scale investing, what happens if there is a 50% crash when you are 54? . You will get to £100K at 55 just saving money in a bank account with no risk whatsoever.

I suggest you work out what you really need when and then put sufficient into safer investments to ensure that you really can retire when you want to.  Anything beyond that can be invested at more risk and hopefully higher return.

Thanks and i agree with what your saying. I wanted sipp to top up my DB pension until my state pension at 67.

I was hoping the 100k into sipp over 6 years would grow by around 6 to 10% per annum all going well but like you said possible pitfalls in a market crash if so then i would leave for few years until market recovers and use other savings i have to cover this to top up DB pension.

But as we are all aware who knows how the markets are going to go over the next decade, same as last decade would be great but i can't see that happening as of now.

OK, but you need to have some concrete aims:
 - By how much will you need per year to top up your DB pension for you to be happy to retire?  £s pls. 
 - WIll you need to top up your DB pension and State Pension after you get  to 67/68?  If so by how much.

Once we have some idea of what you really want we can then suggest what sort of investments may be appropriate.  Depending on the numbers it is always possible that you wont need anything more than £100K or it may be that your dreams are totally unrealistic.   Hopefully you will have enough at your planned contributions to safely meet your needs and have some left over to possibly meet some of your wishes by taking greater risk.

Marko125

OK, but you need to have some concrete aims:
 - By how much will you need per year to top up your DB pension for you to be happy to retire?  £s pls. 
 - WIll you need to top up your DB pension and State Pension after you get  to 67/68?  If so by how much.

Once we have some idea of what you really want we can then suggest what sort of investments may be appropriate.  Depending on the numbers it is always possible that you wont need anything more than £100K or it may be that your dreams are totally unrealistic.   Hopefully you will have enough at your planned contributions to safely meet your needs and have some left over to possibly meet some of your wishes by taking greater risk.

DB pension is deferred until im 55 or another 6yrs from now. i can't put no more into this pension, thats why i want sipp to give me a little extra from 55-67yrs old.

Currently taking a high/low option but can change at anytime i want for 4 different pension options. 14k per annum plus a 97k lump sum tax free from 55-67 and then 7k per annum with full state pension at 67.

Im mortgage free and have 150k in stocks and shares isa plus another 100k in cash.

Looking at 20k plus a year from 55 onwards so from 55-67 want to add about 6k per annum from sipp for 12 years along with 14k pension and the rest will make up if needed through savings.
Then at 67 onwards will have 7k pension plus full state pension 9k and can top up with savings if need be, i think im on track to do this but just need to put into sipp now for 6yrs to get around 100k plus pot if all goes well with investments. Again savings can be used if markets take a hit just before.

Mutton_Geoff

Marko125 said:

My question was what would people choose a cheaper sipp platform with passive index trackers or a more expensive platform with wider range of investments.

The two aren't mutually exclusive. I'm with II and they are dirt cheap (£120 a year for a SIPP) and have access to all the investment products I need.

Look up Snowman's Spreadsheet on this forum or use a comparison site to find what platform is most cost effective for your needs, eg

http://monevator.com/compare-uk-cheapest-online-brokers/

Alexland

Mutton_Geoff said:

 I'm with II and they are dirt cheap (£120 a year for a SIPP) and have access to all the investment products I need.

But that £120 is in addition to the £119.88 main fee so £239.88 pa in total. Our Fidelity SIPPs are capped at £45 pa (on ETFs etc) and we only do 4 x £1.50 trades each year so £51 pa total.