Clueless - simple questions about SIPP

dunstonh

2. My SIPP is entirely invested in HL MULTI-MANAGER BALANCED MANAGED TRUST CLASS A - ACCUMULATION.

HL is one of the more expensive platforms and that is an expensive fund.    You are paying more for going DIY than you would be if you used an ongoing service via an IFA.    So, you need to decide if you want to remain DIY and perhaps look at more suitable alternatives or if not, consider using an IFA as it may save you money.

I noticed HL front page has a "best funds" article to I shall go and read that for now.

Do not confuse marketing with what is actually best for you.

[Deleted User]

travelodger said:

Is there anyone on here who could give me the "heads-up" on a good fund/a few good funds to invest in?

To me it's just a bewildering array and I don't know which to pick. I could just stick with what I have, but I don't want to be missing out. I noticed HL front page has a "best funds" article to I shall go and read that for now.

If I were in your position, given your age and size of the fund, I would move everything to Vanguard’s platform and put it all into VLS60. 

I would also invest in a book, eg DIY Pensions by Edwards.

And I would keep 3K in easily accessible cash for emergencies but maximize investments from the left-over monthly income. 

Albermarle

If I were in your position, given your age and size of the fund, I would move everything to Vanguard’s platform and put it all into VLS60. 

Or as  half way house , stay with HL, but switch the fund to VLS 60 , or similar ( like HSBC global strategy balanced ) 

xylophone

See

https://monevator.com/low-cost-index-trackers/

https://monevator.com/best-global-tracker-funds/

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

You earn  £19,000 per annum?  This HL pension is your only pension (other than state pension)?

You may make a net  annual contribution of up to £15,200 to your SIPP and HL will claim tax relief of up to £3,800 and add it to your pot.

https://www.hl.co.uk/pensions/tax-relief/calculator

travelodger

Albermarle said:

My SIPP is entirely invested in HL MULTI-MANAGER BALANCED MANAGED TRUST CLASS A - ACCUMULATION.

I am thinking this will be quite expensive - 1.5% pa ?

For info most investors on this forum are paying around 0.2% to maybe 0.7% at most for their investments .

Thank you.

What's a quick way of finding the funds that only charge 0.2% to 0.7%, please?

travelodger

I've found this on HL. They have a search facility where you can search for funds with the lowest costs.

For example the BAILLIE GIFFORD MANAGED CLASS B - ACCUMULATION (GBP)

Annual charges
Performance fee:	No
Ongoing charge (OCF/TER):	0.43%
Ongoing saving from HL:	0.18% i
Net ongoing charge:	0.25%

I've looked at all the ones which have fees of under 1% but none of them have anything like the yield I am getting. So what I gain on the swings I lose on the roundabouts - or am I missing something?

Xylophone - I did check my state pension a while back, thanks. I am already getting my occupational pension and have a lot of money in an ISA so I am really not worried at all about my retirement. 

xylophone

Had you checked out the links in my post above?

One of the Funds mentioned

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation

travelodger

Right. I have  found this: HL SELECT GLOBAL GROWTH SHARES CLASS A - ACCUMULATION (GBP)

Now, this has an initial charge, (though I don't understand what they mean by "initial saving from HL") and then 0.6% ongoing fees. 

Is this OK?

CHARGES AND SAVINGS

Initial charges
Initial charge:	3.00%
Initial saving from HL:	3.00%
HL dealing charge:	Free
Net initial charge:	0.00%

How initial savings affect the buy price

Annual charges
Performance fee:	No
Ongoing charge (OCF/TER):	0.60%
Ongoing saving from HL:	0.00%
Net ongoing charge:	0.60%

travelodger

xylophone said:

Had you checked out the links in my post above?

One of the Funds mentioned

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation

Yes, I followed the links and read top to bottom. Understood about 10% of it.

Thanks for that HSBC link. I see the ongoing fee os 0.13, that is very good, and no initial fees.

I am at last beginning to learn what to look for! Thank you!

I cannot check my pension online because, although I managed to log into the Gateway with my username and password, I do not have two proofs of ID, so it won't let me in.

travelodger

PS I just invested £100 in this:

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation