Understanding SIPP - approaching 40 without a pension

Duncannnn

Hi guys,
              I’m self employed, approaching 40 and without a pension.

My only asset is a property I own in Spain and our own home which is mortgaged.

Myself and my partner aim to invest around 2k a month and I’ve opened an account with interactive investor.

I know nothing about investing but have read people recommending buying vanguard funds?

Pardon my ignorance, but when I go into interactive investor and go to buy funds, does it matter when you buy/invest in a particular fund? Or should you hold of until prices drops etc?

I’m am sure everyone can see I am clueless, can anyone reccomend a YouTube channel that would educate me on the subject?

I’ve heard of people you pay a subscription to to give advice on what to invest in and guide you with a plan etc? What are everyone’s thoughts on this and does anyone have any recommendations?

thanks in advance 

Clive_Woody

Here's a bit if light reading to get you started.

https://monevator.com/vanguard-lifestrategy/

Clive_Woody

https://monevator.com/vanguard-sipp-details-2020/

LHW99

How long do you want to wait for unit prices to drop? What if they go up?

Like planting a tree, if you haven't started saving for a pension 20 years ago, the second best time is now!

Clive_Woody

LHW99 said:

How long do you want to wait for unit prices to drop? What if they go up?

Like planting a tree, if you haven't started saving for a pension 20 years ago, the second best time is now!

Time in the market, not timing the market.

Emmia

Basically whatever you do, and whichever provider you do it with, NOW is the time to start putting money away in a pension. 

Angelica123

Re YouTube channels..Damian Talks Money is one that springs to mind. 

Don't wait for unit prices to drop. Your priority is getting into the market. Many people DIY especially if sticking to low cost global index funds. If you invest in SIPP then you will be able to get tax relief. 

You could also consider opening a LISA (although if you are a higher tax payer a pension will still be better way to save for retirement). 

Albermarle

Although the title mentions a SIPP, there is no mention of it in the original post, only that you opened an account with II.
Can you just confirm you actually opened a SIPP with II and now want some info on which investments to choose within the SIPP?
Myself and my partner aim to invest around 2k a month 
So are you both opening a SIPP separately ( you can not have a joint one ) ?
Does your partner work ? You need a certain level of taxable income to get the tax relief on pension contributions of £2k per month.

Then regarding the actual investments, you need to think about your risk tolerance. 
Investment funds that are likely to grow more in the long run, will also go up and down more in the short/medium term and can make inexperienced investors jumpy.

Duncannnn

Albermarle said:

Although the title mentions a SIPP, there is no mention of it in the original post, only that you opened an account with II.
Can you just confirm you actually opened a SIPP with II and now want some info on which investments to choose within the SIPP?
Myself and my partner aim to invest around 2k a month 
So are you both opening a SIPP separately ( you can not have a joint one ) ?
Does your partner work ? You need a certain level of taxable income to get the tax relief on pension contributions of £2k per month.

Then regarding the actual investments, you need to think about your risk tolerance. 
Investment funds that are likely to grow more in the long run, will also go up and down more in the short/medium term and can make inexperienced investors jumpy.

Hi, yes I opened a sipp with II, my partner is opening one too and we are looking for investment tips.

yea my partner works, earning 35k to 40k per year.

I also have some taxable income, which I make working in the Republic of Ireland. I am taxed at source in ROI, is there a way to obtain tax relief on this?

thanks everyone 

Sam_666

Why is your partner not cotributing  to work pension? Is he/she alergic to free money?

Why didnt  you read about ROI tax rules on their super-not-secret website?
https://www.revenue.ie/en/jobs-and-pensions/tax-residence/tax-tax-credits-non-residents.aspx

MeteredOut

Duncannnn said:

Albermarle said:

Although the title mentions a SIPP, there is no mention of it in the original post, only that you opened an account with II.
Can you just confirm you actually opened a SIPP with II and now want some info on which investments to choose within the SIPP?
Myself and my partner aim to invest around 2k a month 
So are you both opening a SIPP separately ( you can not have a joint one ) ?
Does your partner work ? You need a certain level of taxable income to get the tax relief on pension contributions of £2k per month.

Then regarding the actual investments, you need to think about your risk tolerance. 
Investment funds that are likely to grow more in the long run, will also go up and down more in the short/medium term and can make inexperienced investors jumpy.

Hi, yes I opened a sipp with II, my partner is opening one too and we are looking for investment tips.

yea my partner works, earning 35k to 40k per year.

I also have some taxable income, which I make working in the Republic of Ireland. I am taxed at source in ROI, is there a way to obtain tax relief on this?

thanks everyone 

If by investment tips, you mean "how to approach investing" then you've come to the right place.

If you're looking for people to point you at specific stocks/funds, then that's unlikely to happen. 

Do you have any investment goals? ie. when do you and your partner (realistically) want to retire? What kinds of lifestyle do you want to have at that time? What kind of financial provisioning will you need at that age to afford that lifestyle? With that, work back and determine whether your £2k/month will allow that. 

Consider you appetite for risk too. If your £2k/month will not give you the lifestyle to envisage in retirement, are you willing to have a lower standard of retirement, or are you willing to put your investment into more risky places (still funds, not talking crypto) but where you accept that those investments could actually fall in value?

I learned a lot just by reading threads on this board; i'd recommend you do the same too.