Sipp lost £3,777. Yikes - advice please?

MX5huggy

How old are you or more importantly how long until you want to start accessing and spending your pension. LS 80 is a good choice if you have 7 or more years to go. It’s probably a bit high risk for 5 or less. 

If you had stuck with HL the same would have happened (unless you were invested wildly differently). 

dunstonh

I should have said perhaps that I am invested in the Lifestrategy 80 EF

80%  equity puts you as a higher risk investor.    It has plenty of track record during negative periods to see what sort of losses it will suffer.

I have read on other threads people giving advice NOT to pull out of stocks and shares but to "ride it out" but does the same go for this SIPP?

The tax wrapper has nothing to do with returns.  its the same irrespective of wrapper.

It scared me so much I went and cancelled my Direct Debit. Was that the right or wrong thing to do?

Very much the wrong thing to do.  Investments are back to 2020 prices.   Its a much better time to be buying than any time in 2021.

Thanks in advance from "dunderhead".

Why did you pick a high risk investment with around 40% loss potential in short term periods if you are getting wobbly at around 15%?

This perhaps is your mistake.  You have invested too high risk without knowing what you are doing.

My income is £32k gross. 

So, £32k is your maximum pension contribution.

When my friend advised me, my earnings were such that I could only invest £400.

Your friend is wrong. There is no £4800 annual limit unless you happen to be earning £4800.

Aminatidi

I think it's worth mentioning that whilst LS80 might be too much risk travelodger being in a lower risk LS60 or LS40 wouldn't have been significantly better the last few months would it?

There haven't been many safe places even for cautious investors have there?

I can understand the alarm if you're not used to seeing investments lose money and you randomly login and see you're 15% down.

I think it's something you get used to but never like even if you manage to adjust your attitude to seeing it as a buying opportunity.

Rt90

I would just like to say that you shouldn’t panic or worry unduly.
You’re in a globally diverse fund which is taking a bit of a hit at the moment as all others are.
From what I see you have done nothing wrong other than stopping your monthly contribution which you can soon start again if you wish.
 I am in VLS100 so I’m in the same boat. I won’t be touching the money for years so I’m not concerned. I’ll just continue to add as much as I can afford at these lower prices.
My advice is don’t sell and just ride it out. 
Do think about when you will need this money as you may want to increase your bond allocation as you get nearer to that point.

Emmia

Is this your only or main savings "pot"? Is it a case of all eggs in one basket - because if that's the position, I completely get the nerves.

Or do you also have other deposits, cash/premium bonds etc? I'm fairly risk averse, so whilst I have a stocks and shares ISA via Moneybox described as "high risk" and which is down too, it's not my only home for my savings (currently it's about 40% of the value of all my "savings").

I've got some cash and premium bonds too where the value is eroded inflation, but this mix makes me feel safer - the value of my PBs won't go down by 15% overnight for example.

p00hsticks

travelodger said:

 I am an elderly disabled woman bereaved, asking for help.

You describe yourself as elderly - exactly how close to (or by how much over) State Pension Age are you ?

What other pension arrangements, if any, do you have ?

If you are still under SPA, have you got an individual state pension forecast to confirm you are on track to get the maximum state pension you can ? 

Whether it is sensible to be investing in a SIPP, and if so in what sort of funds you should be investing, wil lbe influenced by all these factors.

travelodger

MX5huggy said:

How old are you or more importantly how long until you want to start accessing and spending your pension. LS 80 is a good choice if you have 7 or more years to go. It’s probably a bit high risk for 5 or less. 

If you had stuck with HL the same would have happened (unless you were invested wildly differently). 

If you had stuck with HL the same would have happened (unless you were invested wildly differently). 

Good to have that pointed out and confirmed to me, as I might have started berating myself for switching providers. So thanks for that.

I am 64 and I get a work pension and disability allowances which keep me comfortably as my outgoings are few. I will never need to access my SIPP unless I am forced into a care home and have to use up all my assets.

I don't understand the different choices available for SIPPs at Vanguard. LS 80 was suggested to me on this board so I just went for that. What would be lower risk, please?

steveksullivan

LS80 is a mix of 80% equities (stocks and shares) and 20% bonds which are seen as a 'safer' but potentially less profitable investment. There is also an LS100 option  - 100% equities  - more risky  - and the 'safer' ones which are LS60 (60% equities 40% bonds - you get the idea?), LS40 and LS20

travelodger

Aminatidi said:

I think it's worth mentioning that whilst LS80 might be too much risk travelodger being in a lower risk LS60 or LS40 wouldn't have been significantly better the last few months would it?

There haven't been many safe places even for cautious investors have there?

I can understand the alarm if you're not used to seeing investments lose money and you randomly login and see you're 15% down.

I think it's something you get used to but never like even if you manage to adjust your attitude to seeing it as a buying opportunity.

Thank you Aminatidi, your reply is kind. You make me feel better by pointing out that wherever I had put this money, it would have dropped in value. 

I did indeed log in randomly and I was indeed alarmed and threw a wobbly.

As a relatively new investor who does not understand finances at all, and suffers from a kind of "financial dyslexia", it is indeed a struggle to see this as a "buying opportunity". Before posting I read a few other threads (in case my question had already been answered) and I saw posters saying that it goes against instinct to buy more when you have seen your investments drop, but to seasoned investors it makes perfect sense. I saw it rendered as buy low, sell high. Anyone selling now is selling low and later will be buying high.

I guess it also relies on FAITH.... that stocks and shares WILL go back up. Seasoned investors currently seem to be 100% certain that they definitely will, but to newbies like me, who haven't been watching them go up and down over decades, it is so alarming to see losses of thousands. I also have a stocks and shares ISA with HL and that has lost £60,000. When I log in and look, my stomach goes into a knot and I feel sick. But I am not paying into that one any more. Hence my question was about Vanguard SIPP - should I keep sticking more money in after I have already lost nearly four grand in seven months?

wjr4

Where exactly is the £32,000 income coming from, broken down?