AJBell fund advice

Scallypud

Can anyone advise me on which funds i should invest my 245K pension pot. I currently have the cash sitting in SIPP cash at AJBell.
I'm looking to set up a portfolio that could generate 4/6% per year.
Can anyone advise what percentage of cash i should put into each fund.
Also i would like to thank everyone for their advice over the years. It has been very much appreciated.

Linton

There are an wide range of options in the way you can manage your retirement finances and thousands of funds to choose from.  No one can advise you at that level of detail wthout a good knowledge of you, your personal and financial circumstances, and your objectives.  That is what you pay IFAs to do.  In your case with apparently little knowledge of investing and £245K at stake getting paid-for advice would appear prudent.  Acting on advice from unknown people on the internet who do not know you about that amount of money with no come-back if the advice is wrong is seriously high risk.

How did you get £245K into a SIPP without the knowledge to invest it?  Seeing you are with AJBell did you cash-in a DB pension?

Some very basic info to understand what you want and to assess whether it is feasible with the money you have....
1) Your age, are you retired, if not when? 
2) What other sources of retirement income do you have? 
3) How much income do you need to generate from the SIPP?
4) If not retired, what is your required pension pot value at retirement?
5) Spouse and/or other dependents?

comment_as...

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Scallypud

I transferred my final salary to AJBell. I took all the advice but decided this was the best option for me.
I am 58 and retired. I have no dependents and no other source of income.
I live on my own and will live off my savings for a year before i begin drawdown of 17.5K. I have about 45K in savings
I do have another pension of 171K which i have an IFA looking after but was hoping i could look after this one myself so not having any fees to pay.

Albermarle

As Linton said asking for very specific investment advice on an internet forum is not a very good idea.
You will get a range of differing opinions and probably will not be much wiser afterwards.
Suggest you add this sum to the current sum managed by the IFA. You can always decide later to go it alone but it sounds like not just yet.

Scallypud

Albermarle said:

Suggest you add this sum to the current sum managed by the IFA. You can always decide later to go it alone but it sounds like not just yet.

Can my current IFA manage the funds with in AJBell as i don't want to pay transfer fees to another provider

Linton

Scallypud said:

I transferred my final salary to AJBell. I took all the advice but decided this was the best option for me.
I am 58 and retired. I have no dependents and no other source of income.
I live on my own and will live off my savings for a year before i begin drawdown of 17.5K. I have about 45K in savings
I do have another pension of 171K which i have an IFA looking after but was hoping i could look after this one myself so not having any fees to pay.

It doesnt make sense to have an IFA look after half your money and you look after the rest.  The IFA should be applying a strategy appropriate for your situation.  If you go and do something quite different you could be undermining the IFA's strategy.  All your investments should be managed as a single entity.

I suggest that you get your IFA to at least come up with a strategy and fund allocation covering all your investments.  Whether and for how long you use his services for ongoing management is something to be thought about later.

dunstonh

Can anyone advise me on which funds i should invest my 245K pension pot. I currently have the cash sitting in SIPP cash at AJBell.

What drawdown strategy are you following?  Total return or yield?  Will you be segmenting your portfolio for different time periods?  Will you operate a cash account within the pension or outside of the pension?    What sort of volatility level are you aiming for?

Can anyone advise what percentage of cash i should put into each fund.

I very much doubt anyone here has the skills or knowledge to make that decision.  Myself included (and most other IFAs).  You dont just pull figures out at random and put x% in that and y% in this (although some do but it's likely to result in lower returns over the long term).  How much you invest in each area is more important than the investment funds you pick

I live on my own and will live off my savings for a year before i begin drawdown of 17.5K. I have about 45K in savings

Are you sure that is the best way to do it?  If you are without other income in that year, it probably wont be.

I do have another pension of 171K which i have an IFA looking after but was hoping i could look after this one myself so not having any fees to pay.

It actually may be costing you.   At £171k, there is a good chance the ongoing adviser fee is 1% p.a.  with the addition of £245k, that could drop to 0.5%.    Plus, combining those together could reduce your platform charges.
And dont assume that saving that adviser fee will increase your returns. If you had exactly the same investments and weightings as the adviser portfolio you would save on the fees.   However, you are going for something different.  So, the returns will be different.  Worrying about what could be less than 0.5% p.a.when you are going for something so different is rather pointless as chances are the returns differences will be much more than 0.5%.  You could get more, you could get less but almost certainly it will be greater either way than 0.5%.   
The choice should be to DIY or use an IFA (never an FA).  If you know what you are doing then DIY is viable and you could save money.  However, plenty of DIYers get it wrong or use more expensive options and throw away that potential DIY advantage.   If you want to do DIY right, then you really need to put more effort into learning about investing.

Linton

Scallypud said:

I transferred my final salary to AJBell. I took all the advice but decided this was the best option for me.
I am 58 and retired. I have no dependents and no other source of income.
I live on my own and will live off my savings for a year before i begin drawdown of 17.5K. I have about 45K in savings
I do have another pension of 171K which i have an IFA looking after but was hoping i could look after this one myself so not having any fees to pay.

From historical data I dont believe you will get a safe sustainable inflation linked income of £17.5K from your £245K Sipp.  Taking an inflation linked £17.5K from the £416K total pensions may be OK if you are able to be flexible in your drawdown taking less than normal when prices are low.  But you will need to monitor how it goes.

Audaxer

Linton said:

Scallypud said:

I transferred my final salary to AJBell. I took all the advice but decided this was the best option for me.
I am 58 and retired. I have no dependents and no other source of income.
I live on my own and will live off my savings for a year before i begin drawdown of 17.5K. I have about 45K in savings
I do have another pension of 171K which i have an IFA looking after but was hoping i could look after this one myself so not having any fees to pay.

From historical data I dont believe you will get a safe sustainable inflation linked income of £17.5K from your £245K Sipp.  

I was about to say the same, as that would be a withdrawal rate of 7.14% per annum, which is extremely unlikely to be sustainable through retirement.

Scallypud

Linton said:

From historical data I dont believe you will get a safe sustainable inflation linked income of £17.5K from your £245K Sipp.  Taking an inflation linked £17.5K from the £416K total pensions may be OK if you are able to be flexible in your drawdown taking less than normal when prices are low.  But you will need to monitor how it goes.

After 8 years i will reduce my drawdown to 9K as i will have my 8.5K state pension