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How best to invest a SIPP

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  • OldMusicGuy
    OldMusicGuy Posts: 1,769 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    Like MallyGirl said, read the books by John Edwards as a starting point: "DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning" and "DIY Simple Investing: A Guide to Simple but Effective Low Cost Investing".

    Also, take a look at this PensionCraft video: https://pensioncraft.com/review-of-vanguard-lifestrategy-funds/

    Make sure you understand why different equity/bond ratios impacts the potential performance and volatility of a fund. Here's a simple chart from a Trustnet analysis that compares the VLS funds up to April last year:


    VLS funds are a good starting point but there are other choices (like MallyGirl said), so don't just jump on them without doing a bit of reading and research.
  • JohnWinder
    JohnWinder Posts: 1,862 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Nice chart. Here is similar information, returns plotted against volatility for different mixes of stocks and bonds, showing the relationship and giving some sense of the size of both for different mixes. Figure 4:

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