Sipp

Jt1979

I currently have some money in an old pension from a previous employment, I'm not adding any money into this pot. I thinking about opening a sipp and transfering it over to this. The reason being I'm thinking of investing all into one stock. 
Has anyone got any advice on which company to transfer to? 

Thanks in advance for any help. 

Marcon

Jt1979 said:

I currently have some money in an old pension from a previous employment, I'm not adding any money into this pot. I thinking about opening a sipp and transfering it over to this. The reason being I'm thinking of investing all into one stock. 
Has anyone got any advice on which company to transfer to? 

Thanks in advance for any help. 

Why?

Maybe revisit your own thread of 2017 and ponder your conclusion there before going anywhere fast: https://forums.moneysavingexpert.com/discussion/5763780/pensions-and-crypto-currencies#latest

ColdIron

Jt1979 said:

The reason being I'm thinking of investing all into one stock.

This seems a remarkably bad idea. In 2019 you were in debt to NRAM for £29,000. Are you debt free now?

Jt1979

I'm not understanding the why question?

If I were able to invest in bitcoin in 2017 as you now can with the ETF  I would have 3 to 4X my initial 28,000. Instead it's now sitting at just over 30k. 

QrizB

And that tells us everything we need to know.

Jt1979

The advice and help above has been outstanding. Thanks. 

Marcon

Jt1979 said:

I'm not understanding the why question?

Sorry - I thought 'why' was quite clear.

Why do you want to take the risk of investing the whole of your pension savings in one stock?

Secret2ndAccount

I don't believe that UK investors are able to buy any of the bitcoin ETF's. They are available in the USA, but no mainstream UK pension provider will allow you to buy them. You can buy most US stocks inside a SIPP, but only a subset of the funds. Funds have to go through a process called UCITS approval to be sold in the UK. Many US based funds don't bother to apply for UCITS approval. This will include all the bitcoin ETF's because they know they won't receive it. Too innovative for the crusty old men to approve.

Jt1979

Secret2ndAccount said:

I don't believe that UK investors are able to buy any of the bitcoin ETF's. They are available in the USA, but no mainstream UK pension provider will allow you to buy them. You can buy most US stocks inside a SIPP, but only a subset of the funds. Funds have to go through a process called UCITS approval to be sold in the UK. Many US based funds don't bother to apply for UCITS approval. This will include all the bitcoin ETF's because they know they won't receive it. Too innovative for the crusty old men to approve.

Thank you for the reply, I really appreciate the advice there. I'm not actually currently looking into Bitcoin, I would have in 2017 as I posted previously but not at the moment, I'm unsure why this was brought up by someone above!
I'm thinking of Tesla, could this be done through a sipp? Thanks again. 

Jt1979

Marcon said:

Jt1979 said:

I'm not understanding the why question?

Sorry - I thought 'why' was quite clear.

Why do you want to take the risk of investing the whole of your pension savings in one stock?

This isn't all of my pension, this is an old pension that I no longer pay into, I've left this alone and it's doing nothing in the last 5 years. I'm happy to take a risk with this. I have my current pension which is being left alone, I have been paying into my current pension for 15 years. I wouldn't risk everything I have on one stock. But I will take a risk with some of it. 

Secret2ndAccount

Yes, you can buy Tesla shares on most of the major platforms. However, I wouldn't touch it with a bargepole. Here are three ways to value a stock:

Plan A: Fundamentals
How much do they sell? How much profit do they make on those sales? Is that profit expected to grow or shrink over time? What is their level of debt or cash on hand? How well respected is the management? Do they have a history of exceeding their predictions or failing to do so? What innovations are ahead? How do they compare to similar companies in the same field?  Throw all this into the melting pot and it's possible to come up with some sort of realistic price for any stock.  
By this method Tesla stock is extremely expensive. They don't make enough profit to justify the high share price, and with weakening sales they can't promise sufficient growth into the future to grow into that share price.

Plan B: Technicals
Forget the specifics of the business, and just look at the price chart

Each successive peak is lower than the last. Each successive trough is lower than the last. This is a stock headed firmly down hill.

Plan C:  The Story
Some stock prices just float defiantly above fundamental or technical analysis. Think of it like buying shares in Liverpool Football Club. People just believe in the story, and buy to be part of it. This definitely happened with Tesla. The share price made no sense at $100. Then it went to $200, then it went to $380. This triggers FOMO (fear of missing out) and more people buy. Institutions notice how fast the price is rising and get on board to ride the train. This can go on for years. Eventually though, gravity ceases to be defied. The air is slowly coming out of the Tesla balloon. It's not going bankrupt. It's just going to be valued like a normal share, with maybe a bit extra for the Elon Musk factor.

Do not buy Tesla. I don't think it will be higher next week, and I don't think it will be higher in 5 years.