SIPP lump sum or regular invest

dannybbb

after much deliberation im starting a sipp but in the sign up process theres some information on the benefits of regular saving over a lump sum.

i have 40k which i intend to put in a global multi asset fund. i could always put some in now and some next tax year, i was thinking of 100k in total but would it be sensible to put this in over a longer period ?

thanks

Veteransaver

You may be referring to the "pound cost averaging" effect which does suggest you get slightly better returns by drip feeding money in as you buy more share/units when the price is low.
However there is also the whole "time in the market" rather than "timing the market".
You could put all your money in now and the next day there is a sudden stock market crash, you just don't know, are you investing for the long term (assume you are a way off retirement?) 
On the filip side if you don't put all your money in now you miss out on any gains ("time in the market")

dannybbb

yes thats it. avoiding the risk of putting most of it in before a crash, spreading the risk I guess. 
im 48, almost 49 so depends on your view of long term but 10 years at least

Dazed_and_C0nfused

dannybbb said:

after much deliberation im starting a sipp but in the sign up process theres some information on the benefits of regular saving over a lump sum.

i have 40k which i intend to put in a global multi asset fund. i could always put some in now and some next tax year, i was thinking of 100k in total but would it be sensible to put this in over a longer period ?

thanks

Do you have sufficient earnings for pension contribution purposes to allow that?

ColdIron

It's a gamble as I suspect you have read. Do you have the relevant earnings to make a £50,000 (or £125,000) gross contribution? If not you'll be spreading it over several contributions anyway

dannybbb

profits are 40,000 last year and there is 150000 in the business of which i could safely take 100k from, would you reccomend an amount to begin with and then feed it in month by month?

Dazed_and_C0nfused

dannybbb said:

profits are 40,000 last year and there is 150000 in the business of which i could safely take 100k from, would you reccomend an amount to begin with and then feed it in month by month?

Neither of which is immediately relevant.

It's your taxable profit this year which is the key factor to start with.

As you seem to refering to personal contributions I'm assuming you are a sole trader.

boingy

dannybbb said:

yes thats it. avoiding the risk of putting most of it in before a crash, spreading the risk I guess. 
im 48, almost 49 so depends on your view of long term but 10 years at least

In 30 years you'll describe your age as "78 and seven-eighths".

Stick your 40K into your pension in one lump and then forget about it. You'll thank me when you are 78 and seven-eighths.

(Caveat: Check your maximum allowed contributions)

dannybbb

limited company

dannybbb

and last tax return was 40k profit, i assumed that was relavant but will be similar this year

Dazed_and_C0nfused

dannybbb said:

limited company

Have you run this plan past your accountant 🤔

Is your salary £50k?