Cash in SIPP, when to take the plunge?

handful

I've recently paid some inheritance cash into my ii SIPP, up to my annual limit so roughly £40k. Along with some cash sat in an ISA,  I wanted to get this invested in a global tracker but with the current troubles in Gaza etc and with Iran now starting to make threats I'm kind of thinking it may be a bad time. I know drip feeding  it in is probably a safer option rather than wait for a crash to happen but is there a strategy for this that I may not be aware of? TIA

Albermarle

I wanted to get this invested in a global tracker but with the current troubles in Gaza etc and with Iran now starting to make threats I'm kind of thinking it may be a bad time

The strategy is to ignore the constant stream of bad news, which happens every week/month/year. ( although it is easier said than done)

Historically it is better to invest it all now rather than drip feed, but you might be unlucky of course.

Otherwise you can maybe add it it in two or three chunks, as it might make you feel better. Also you could look at not investing in a 100% equity tracker, but in maybe a multi asset fund.

handful

Albermarle said:

I wanted to get this invested in a global tracker but with the current troubles in Gaza etc and with Iran now starting to make threats I'm kind of thinking it may be a bad time

The strategy is to ignore the constant stream of bad news, which happens every week/month/year. ( although it is easier said than done)

Historically it is better to invest it all now rather than drip feed, but you might be unlucky of course.

Otherwise you can maybe add it it in two or three chunks, as it might make you feel better. Also you could look at not investing in a 100% equity tracker, but in maybe a multi asset fund.

Thank you. I think I have enough in "safe" investments so am going to probably go with a higher risk 80-100% global equity fund for this but would prefer not to lose say 20% overnight! I will probably do as you suggest and maybe do it in 3 or 4 chunks. 

QrizB

handful said:

 I wanted to get this invested in a global tracker but with the current troubles in Gaza etc and with Iran now starting to make threats I'm kind of thinking it may be a bad time.

If you go looking for reasons, it's always a bad time to invest. We do it anyway.

JohnWinder

to get this invested in a global tracker …….but would prefer not to lose say 20% overnight!

I’ll presume you mean an equity tracker, but you may not. Drip it in or pour it all in, when it’s in it can lose 22% overnight as it did in 1987.  And we won’t even mention 1987 when the next big fall exceeds 22% overnight. If you can’t stomach it, don’t put it all in stocks.

Ivkoto

This two videos might be useful for your situation.

https://youtu.be/oeob9z27-gA?si=1t6Yczns0B8Gk2Mr



https://youtu.be/-6nVyMFAW1M?si=MTpOVDIybDGUIwvV

Beddie

handful said:

Albermarle said:

I wanted to get this invested in a global tracker but with the current troubles in Gaza etc and with Iran now starting to make threats I'm kind of thinking it may be a bad time

The strategy is to ignore the constant stream of bad news, which happens every week/month/year. ( although it is easier said than done)

Historically it is better to invest it all now rather than drip feed, but you might be unlucky of course.

Otherwise you can maybe add it it in two or three chunks, as it might make you feel better. Also you could look at not investing in a 100% equity tracker, but in maybe a multi asset fund.

Thank you. I think I have enough in "safe" investments so am going to probably go with a higher risk 80-100% global equity fund for this but would prefer not to lose say 20% overnight! I will probably do as you suggest and maybe do it in 3 or 4 chunks. 

I'd do the same, spread it out into 3 or 4 lumps. Whether it makes any difference, who knows in the long term? But it does feel a bit safer, even if it isn't!

You could drop the rest into a short term money market fund to get over 5%, while it's waiting to go into a global tracker, e.g.

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/r/royal-london-short-term-money-market-class-y-accumulation

leosayer

The evidence seems to be that investing the lump straight away gives the best chance of maximising returns as long as you can emotionally handle the risks, according to the excellent video below

https://www.youtube.com/watch?v=X1qzuPRvsM0

Exodi

QrizB said:

handful said:

 I wanted to get this invested in a global tracker but with the current troubles in Gaza etc and with Iran now starting to make threats I'm kind of thinking it may be a bad time.

If you go looking for reasons, it's always a bad time to invest. We do it anyway.

^ This, we see similar threads about whether 'now is a bad time to buy and whether to wait' (we also see these on the house buying sub forum) and these threads are posted every day of every week of every year.

If you're looking for the time where 'the world is at peace, global economies are booming and humanity has achieved a state of Utopia' then, even if such a thing did ever happen, you're already too late to invest. Too many people think the right time to buy in is when everything is hunky-dory and stock prices are at all time highs, when in reality the opposite is true.

We should also appreciate that sentiment from the tragedies in Gaza would have already been priced in. You should absolutely not make investing decisions based on the news that everyone has access to.

wjr4

How old are you? How long until you plan to access the pension? 

Mutton_Geoff

handful said:

I've recently paid some inheritance cash into my ii SIPP, up to my annual limit so roughly £40k. Along with some cash sat in an ISA,  I wanted to get this invested in a global tracker but with the current troubles in Gaza etc and with Iran now starting to make threats I'm kind of thinking it may be a bad time. I know drip feeding  it in is probably a safer option rather than wait for a crash to happen but is there a strategy for this that I may not be aware of? TIA

As they say, it's "time in the market" not "timing the market" that is the best strategy.