Top up SIPP

biy01

Hi there

I am thinking of topping up my private pension. I used to have a financial advisor but from now on I have to do this myself. If I deposit £800 into my pension account, with the tax relief it will become £1000. When I invest, do I put down £800 as the "buy value" or do I put £1000 please? 

Secondly, I have no idea out of the never ending funds list which one I should invest in. My pension up to now has been invested in Vanguard LS40% Equi A Acc. I think I will just stick to the same. I don't suppose anyone in the forum would be able to advise on a "better" fund to invest in, if any, but only mentioning this as I assume there might be a few people out there that are in a similar situation?

dunstonh

When I invest, do I put down £800 as the "buy value" or do I put £1000 please? 

Depends on the software of the provider.  There is no universal method.       If the provider pre-funds the tax relief, normally you do 100%.  If they don't pre-fund then you normally select the lower amount although some will take that instruction and apply it to the tax relief when it arrives around 6 weeks later.

 I don't suppose anyone in the forum would be able to advise on a "better" fund to invest in, if any, but only mentioning this as I assume there might be a few people out there that are in a similar situation?

Its fine.  Its not generally regarded the best option (not the cheapest and some would question its asset make up due to home bias).    But its fine.    The IFA MPS version has had consistently better performacne but the version you will have access to is fine.  Especailly if you don't know what you are doing. 

Depending on your age, it may be a bit on the cautious side but that is for you to decide.

Linton

biy01 said:

Hi there

I am thinking of topping up my private pension. I used to have a financial advisor but from now on I have to do this myself. If I deposit £800 into my pension account, with the tax relief it will become £1000. When I invest, do I put down £800 as the "buy value" or do I put £1000 please? 

Secondly, I have no idea out of the never ending funds list which one I should invest in. My pension up to now has been invested in Vanguard LS40% Equi A Acc. I think I will just stick to the same. I don't suppose anyone in the forum would be able to advise on a "better" fund to invest in, if any, but only mentioning this as I assume there might be a few people out there that are in a similar situation?

There is no such thing as a specific "better" fund.  What you need to look for are more appropriate funds given your circumstances, objectives, and attitude to risk, none of which anyone here knows.

For example VLS40 is moderately cautious but will still show some volatility.  You are presumably used to its behaviour.  Are you willing to accept great volatility in exchange for better long term returns or have the price movements you have experienced led to sleepless nights?

Another key factor is your time frame.  Are you retiring in 2 years time or not for 20 years or more?  If the latter you may be able to accept greater risk since you have decades to recover from any serious problems.

LHW99

Does your online account tell you the amound (of cash) you have available to use? It may only be shown once you click the "Buy button" (but before confirming the purchase - ie at the point you could still cancel if you wished).

Audaxer

biy01 said:

Hi there

I am thinking of topping up my private pension. I used to have a financial advisor but from now on I have to do this myself. If I deposit £800 into my pension account, with the tax relief it will become £1000. When I invest, do I put down £800 as the "buy value" or do I put £1000 please? 

Secondly, I have no idea out of the never ending funds list which one I should invest in. My pension up to now has been invested in Vanguard LS40% Equi A Acc. I think I will just stick to the same. I don't suppose anyone in the forum would be able to advise on a "better" fund to invest in, if any, but only mentioning this as I assume there might be a few people out there that are in a similar situation?

If you top-up your SIPP with £800, the tax relief is usually added around 2 months later. Your provider should be able to advise you of the date the tax relief will be added. You can either invest the £800 immediately and invest the tax relief when received, or wait for the tax relief to be added and invest the full £1,000 at that time.

As others have said VLS40 a moderately cautious fund. It a perfectly good multi asset fund, but it depends on your time frame and risk tolerance. 

Albermarle

biy01 said:

Hi there

I am thinking of topping up my private pension. I used to have a financial advisor but from now on I have to do this myself. If I deposit £800 into my pension account, with the tax relief it will become £1000. When I invest, do I put down £800 as the "buy value" or do I put £1000 please? 

Secondly, I have no idea out of the never ending funds list which one I should invest in. My pension up to now has been invested in Vanguard LS40% Equi A Acc. I think I will just stick to the same. I don't suppose anyone in the forum would be able to advise on a "better" fund to invest in, if any, but only mentioning this as I assume there might be a few people out there that are in a similar situation?

Someone else's situation will not be the same as your own.
For example you could be 50 with no mortgage and a well paid job and planning to retire in 10 years time. ( we do not know that as you have supplied no details about yourself)
Joe Bloggs could be 25, just starting their first graduate job and hoping to buy a house in 5 years.

So the answer of how to invest is different for both.

biy01

thank you ALL so much for your helpful advice. 

I think I now know what value I need to put down when I invest. (Fingers crossed. I will test it out on my salary pay day). 

I am going to be 57 in Oct. I am in full time employment, hopefully, till the "official" retirement age (whether that's 65 or 67 I don't really know). So I hope I have a bit of time and flexibility to weather the storm 

I am risk adverse. But for smaller amount, I am thinking of putting some money towards Vanguard LS100% (whilst the majority of my investment is in LS40%).

MallyGirl

It will be 67 for you