SIPP Fund Selection Suggestions Sought

mebu60

I had the good fortune to be able to retire early taking a DB pension from age 55 supplemented by a SIPP in drawdown which finished this year as I get my full state pension from January next year. It never occurred to me that you could continue to pay into a pension when you were receiving a pension until I read on here recently that anyone can pay £2880 into a SIPP until age 75. Thank you whoever mentioned that. Plus the £720 boost. I am a 40% tax payer with a range of savings plus investments in S&S ISAs. Like many on here I am naturally cautious with my investments and rarely spend money on myself.

There is the opportunity to be a little bolder with the SIPP choices for the next ten years. The end result is not going to change my life but it may help towards a new car in 2033! Vanguard seems the simplest route (my previous SIPP was with BestInvest) and global equities was my first thought, perhaps via a life strategy index with a high proportion of equities. I am telling myself I don’t need another Sterling STMMF! Three or four selections probably optimum. All suggestions most welcome to stimulate my thinking. Thanks.

Albermarle

There are similar alternatives to Vanguard Life Strategy, such as the HSBC global strategy range, which in recent years has performed a bit better and is a bit cheaper.
You also have funds from Fidelity and Blackrock and others.
Although only the Vanguard ones are available on the Vanguard platform.

El_Torro

Based on your requirements I would keep it simple and go with 1 (or more than 1 if you want) multi asset fund. As Albermarle mentions VLS isn't the be all and end all of multi asset funds. Some comparisons between the different fund providers can be found here: https://monevator.com/passive-fund-of-funds-the-rivals/

Since your DB pension already covers your financial requirements what is it you're investing for?

JohnWinder

with a high proportion of equities.’

Before you go too far down this line, get a bit familiar with what a fund with a high proportion of equities can do over a 5 year period. Use portfoliovisualizer if you can’t find a suitable non-USA site. You need a history of more than 25 years if possible. Why 5 years? Because in 5 years time, whatever your fund has done, you’ll be 5 years away from buying your new car. Equity returns can be very disappointing over periods as short as 5 years, even 15 years if you’re out of luck.

Stargunner

As you can only invest £3600 (£2880 plus tax relief) per year and with you being a 40% tax payer in retirement, you may ss well be bold and just go for a cheap global tracker, because whatever happens will have no effect on your retirement

Easyjet77

Vanguard offer a large number of options for investments apart from vls funds. The vls funds are only a small part of the choices available. Most other options do not have the heavier uk weighting which seems to be a bugbear on this board. Regards 

ColdIron

mebu60 said:

It never occurred to me that you could continue to pay into a pension when you were receiving a pension until I read on here recently that anyone can pay £2880 into a SIPP until age 75. Thank you whoever mentioned that. Plus the £720 boost. I am a 40% tax payer with a range of savings plus investments in S&S ISAs

As well as the £720 basic rate tax rebate HMRC will raise the £50,270 higher rate threshold to £53,870 saving you another £720 higher rate tax. What's not to like?

Albermarle

Easyjet77 said:

Vanguard offer a large number of options for investments apart from vls funds. The vls funds are only a small part of the choices available. Most other options do not have the heavier uk weighting which seems to be a bugbear on this board. Regards 

You are right that they do offer more funds than just the Lifestrategy ones, however the OP mentioned them specifically. Hence the info that there are other providers of these kind of investments, which are similar but not identical.

Easyjet77

Albermarle said:

Easyjet77 said:

Vanguard offer a large number of options for investments apart from vls funds. The vls funds are only a small part of the choices available. Most other options do not have the heavier uk weighting which seems to be a bugbear on this board. Regards 

You are right that they do offer more funds than just the Lifestrategy ones, however the OP mentioned them specifically. Hence the info that there are other providers of these kind of investments, which are similar but not identical.

I am only trying to be helpful to the op, who mentioned "perhaps vls". I merely  offered the fact that there are other choices available via Vanguard ( global equity funds etc)as the op may have been unaware. Yes, plenty of choice of providers, platforms etc and enlightenment  is always favourable.

shortseller09

ColdIron said:

As well as the £720 basic rate tax rebate HMRC will raise the £50,270 higher rate threshold to £53,870 saving you another £720 higher rate tax. What's not to like?

When you withdraw it you pay £1440 in tax

shortseller09

shortseller09 said:

When you withdraw it you pay £1440 in tax

...that is assuming you've used all your 25% tax free