SIPP Fund Choices

NithyaH

Hello.  I am 40 and have been contributing to my pension via a SIPP as I have been largely self-employed.  

I have invested in a number of funds, mainly HSBS GS Dynamic (50%) and Vanguard LS 80 (25%).  I also have Fidelity Multi-Asset Allocator Adv, BNY Mellon Multi-Asset Balanced and L&G Multi-Asset 7 (together 25%).  

I’m happy with this broad risk level, but as I am starting a new job I will no longer be adding to the SIPP (instead, will be contributing to SW).

I am considering whether I should simply consolidate everything in SW or whether it’s fine to leave my SIPP as is for the next 5 to 10 years.   Ultimately, in plan to keep working until 65 or so and want to keep predominantly equities for quite some time yet (as my SW fund will be too).

Thoughts/comments appreciated.

Marcon

NithyaH said:

Hello.  I am 40 and have been contributing to my pension via a SIPP as I have been largely self-employed.  

I have invested in a number of funds, mainly HSBS GS Dynamic (50%) and Vanguard LS 80 (25%).  I also have Fidelity Multi-Asset Allocator Adv, BNY Mellon Multi-Asset Balanced and L&G Multi-Asset 7 (together 25%).  

I’m happy with this broad risk level, but as I am starting a new job I will no longer be adding to the SIPP (instead, will be contributing to SW).

I am considering whether I should simply consolidate everything in SW or whether it’s fine to leave my SIPP as is for the next 5 to 10 years.   Ultimately, in plan to keep working until 65 or so and want to keep predominantly equities for quite some time yet (as my SW fund will be too).

Thoughts/comments appreciated.

What are you hoping to achieve by 'consolidating'?

Albermarle

NithyaH said:

Hello.  I am 40 and have been contributing to my pension via a SIPP as I have been largely self-employed.  

I have invested in a number of funds, mainly HSBS GS Dynamic (50%) and Vanguard LS 80 (25%).  I also have Fidelity Multi-Asset Allocator Adv, BNY Mellon Multi-Asset Balanced and L&G Multi-Asset 7 (together 25%).  

I’m happy with this broad risk level, but as I am starting a new job I will no longer be adding to the SIPP (instead, will be contributing to SW).

I am considering whether I should simply consolidate everything in SW or whether it’s fine to leave my SIPP as is for the next 5 to 10 years.   Ultimately, in plan to keep working until 65 or so and want to keep predominantly equities for quite some time yet (as my SW fund will be too).

Thoughts/comments appreciated.

If the investments you choose in the SW pension are similar to the ones you hold in the SIPP, then long term any differences will be small whether you consolidate or not.
So you are looking at other issues such as;

Charges
Customer service
Website functionality
Having just one pension reduces admin a bit, but having two maybe will give you a bit more flexibility at some point.

Personally I would not do anything straightaway. FYI , SW do not have the best reputation for having a slick website or good customer service, although they have been working on updating their systems so all that may be behind them. 

Probably another poster will say you have too very many similar funds/duplication in the SIPP, but in reality it probably is not going to cause any significant issues.

NithyaH

Marcon said:

NithyaH said:

Hello.  I am 40 and have been contributing to my pension via a SIPP as I have been largely self-employed.  

I have invested in a number of funds, mainly HSBS GS Dynamic (50%) and Vanguard LS 80 (25%).  I also have Fidelity Multi-Asset Allocator Adv, BNY Mellon Multi-Asset Balanced and L&G Multi-Asset 7 (together 25%).  

I’m happy with this broad risk level, but as I am starting a new job I will no longer be adding to the SIPP (instead, will be contributing to SW).

I am considering whether I should simply consolidate everything in SW or whether it’s fine to leave my SIPP as is for the next 5 to 10 years.   Ultimately, in plan to keep working until 65 or so and want to keep predominantly equities for quite some time yet (as my SW fund will be too).

Thoughts/comments appreciated.

What are you hoping to achieve by 'consolidating'?

Ease of seeing how my pension is performing, taking advantage of the low fee my new employer appears to have negotiated, not being able to tinker like impossible in my SIPP!

noclaf

I would rather hold onto a SIPP than consolidate it into a work pension unless their total charges are so low that it makes it a 'no brainer'.

Based on your SIPP fund selection and OP, it seems you have a reasonably good understanding of funds and risk tolerance so I would personally keep the SIPP as you have more control.

I can relate to your point regarding tinkering, done it far too much but I've been able to resist over the last year or so and left my SIPP alone...mainly because it's my largest value investment and each time I trade it's a relatively big hit on fees so rather than chase the highest returns I am trying to be satisfied with reasonably good performance.

As an aside the HSBC and Vanguard funds you mentioned, I plan to use exact same two funds for my wife's SIPP once we consolidate her numerous pensions and will likely use the same funds at some point too for my own accounts, reasonable costs and performance, well established names and a nice mix of Equities with some Bonds for diversification....ignoring last year's mess....

Similar to Albermarle's comments, you could do nothing for now as your portfolio looks ok, there might be room to simplify but on the other hand having the additional funds might help overall performance....an unknown.