Where would you invest your SIPP money?

Margaretmay

I have a couple of old pensions that are not doing much and the online dashboards to look at what I am invested in are so useless, I would prefer to move to something more user friendly and also to change what I am invested in.

I have a very old Prudential pension that seems to be invested in a lifestyling fund and had me down at retiring at 60 when I think I would more realistically be looking to fully retire at 65, the Pru website is absolutely shocking, so difficult to actually find any information on your fund or even simple things like changing your name or beneficiary. The second is an Aviva pension, again medium risk lifestyling type fund, which again had me down as retiring at 60.

I have had a look at changing the investment strategy on Aviva and the list of funds available to me mean absolutely nothing, it is scary and puts me off doing anything to be quite honest. Pru website can't even tell you what you're currently invested in let alone change anything!

I was looking to move to something like Vanguard and was looking at the Global Strategy 80% equities fund - this seems to fit the bill of what I want without confusing the hell out of me.

Any thoughts?

Margaretmay

Sorry I think it is actually Lifestrategy 80% equities fund not Global Strategy 80% equities 

dunstonh

I was looking to move to something like Vanguard and was looking at the Global Strategy 80% equities fund - this seems to fit the bill of what I want without confusing the hell out of me.

Statistically, that would probably mean you are increasing your investment risk.  (most people are around medium risk - VLS80 is medium/high)

Its fine. I wouldn't use it as I think similar alternatives are better and cheaper, but that is splitting hairs.    And to be honest, if you are going to take on VLS80 with its 40% loss potential then you have to wonder if holding 20% in bonds is really worth it and you may as well go the whole hog into a global tracker (not VLS100 as that is the odd one out in the range)

Linton

I suspect a “very old” Prudential fund would not be lifestyling, but rather a With Profits fund which is very different.

It would help if you gave us its full name. Such funds can be very good with worthwhile guarantees, though that will depend on how very old it is.

Margaretmay

Linton said:

I suspect a “very old” Prudential fund would not be lifestyling, but rather a With Profits fund which is very different.

It would help if you gave us its full name. Such funds can be very good with worthwhile guarantees, though that will depend on how very old it is.

Hi there, it is a pension I put some money into about 1988 and just says it is a With Profits Fund 

dunstonh

Margaretmay said:

Linton said:

I suspect a “very old” Prudential fund would not be lifestyling, but rather a With Profits fund which is very different.

It would help if you gave us its full name. Such funds can be very good with worthwhile guarantees, though that will depend on how very old it is.

Hi there, it is a pension I put some money into about 1988 and just says it is a With Profits Fund 

Then Linton is correct.  It has no lifestyling and depending on when in 1988, it could be a personal pension or a S226 retirement annuity contract.   1988 was the final year of RACs and the first for PPPs.

There may also be safeguarded benefits on that pension given its age.

Linton

Margaretmay said:

Linton said:

I suspect a “very old” Prudential fund would not be lifestyling, but rather a With Profits fund which is very different.

It would help if you gave us its full name. Such funds can be very good with worthwhile guarantees, though that will depend on how very old it is.

Hi there, it is a pension I put some money into about 1988 and just says it is a With Profits Fund 

To add some implications if it has “safeguarded benefits” as suggested by @dunstonh…

1) these may make the pension significantly more valuable to you than it may appear so you may not wish to transfer.

2) if the pension is worth more than £30k you will need to pay for advice from an IFA before transferring. If the advice is not to transfer, as it probably will be, you may find it difficult to get somewhere to accept a transfer it in.

So I suggest you find out from Prudential if there are any safeguarded benefits.

Margaretmay

Thank you - I think I definitely need to speak to an IFA, just not had much luck with the two I have tried...one wasn't an IFA after all and was linked to SJP and wanted me to move everything to them and the other one didn't turn up for our meeting! Will keep trying to find someone reputable.

Albermarle

Margaretmay said:

Thank you - I think I definitely need to speak to an IFA, just not had much luck with the two I have tried...one wasn't an IFA after all and was linked to SJP and wanted me to move everything to them and the other one didn't turn up for our meeting! Will keep trying to find someone reputable.

It can depend on how much money is involved. Below a certain level you may find most IFA's will not be that interested. Anything below £50K, or even £100K is not really IFA territory.

FYI - a With Profits fund is one that is designed to smooth out the ups and downs of financial markets. They keep back money in the good years to help in the bad years. However they are pretty opaque in their operation which is probably why you can not find any detailed info.

Margaretmay

Thanks, I was looking at general IFA help with my 3 pensions which are currently valued at £600K but as I say not had a lot of luck with the 2 I have tried, but have contacted a few others now.

Albermarle

Margaretmay said:

Thanks, I was looking at general IFA help with my 3 pensions which are currently valued at £600K but as I say not had a lot of luck with the 2 I have tried, but have contacted a few others now.

Normally you get a free one hour introductory chat, to help both parties decide if they want to go ahead.
If you want to go ahead there will be an initial charge of up to 3%. However as you have a large fund then more likely it will be more like 1% ( if it is more you can object). You will also be offered ongoing servicing. You do not have to have it but most do I think. This should be 0.5%pa.