Nest Sharia fund or 2040

LHW99

also if I put my overpayments in a private pension are there any good ones you can recommend or are they all the same in this financial climate?

You could try these links

https://monevator.com/work-out-cheapest-platform/

https://monevator.com/find-the-best-online-broker/

The second links to the UK comparison table at the end of the article - there are also other sites that would provide equivalent information.

poseidon1

samps1973 said:

I need to learn a little about Sipps. I have a few small seperate investments ishares physical gold, ishares Europe financials etf and Berkshire Hathaway class b. These investments are doing ok considering the tariffs. I’m not sure if I could use these investments in a sipp. I don’t have much faith in the S&P 500 for obvious reasons.

I’m thinking about putting my overpayments in a sipp or private pension as somebody mentioned above. If I can include them investments in a sipp, does anybody know the best company to use for this? I know they all vary with fees etc.

also if I put my overpayments in a private pension are there any good ones you can recommend or are they all the same in this financial climate?

Thank you

Hargreaves Lansdown would accommodate holding these investments in their SIPP.

The process would be to open a general investment account with them and transfer your holdings to that account.

Then open a SIPP account  (£ 100 minimum lump sum)

Once they  have your investments  in the GIA, HL operates a useful 'bed and SIPP'  process whereby they will sell one or other of your investment holdings on your behalf and immediately buy it back in the SIPP, thereby funding your SIPP with an investment you already own without having to find new money.  6 weeks later, HL will add cash to your SIPP being HMRC tax relief  on the cost of the investment purchased in the SIPP.

Please note you are responsible for maintaining your own capital gains tax records for the investments you hold. Any sale of investments in the GIA is potentially subject to CGT, so bear this in mind when choosing your 'bed & sipp' investment. See below link to the service -

https://www.hl.co.uk/shares/share-exchange-service-sipp

dunstonh

also if I put my overpayments in a private pension are there any good ones you can recommend or are they all the same in this financial climate?

What would a financial climate have to do with the provider and their product?

A SIPP is like a bucket.   That bucket will still be a bucket whether you put it outside, inside or whether it is raining, snowing or sunny.

It is what you put in the bucket what matters and that is the same with a SIPP.

And there is nothing going on at the moment that changes anything other than perhaps whether this is the change in the cycle from US equities to Global Equities.  Only hindsight will tell us but its been a long alternating cycle that you can clearly see when looking backwards but have no way of knowing looking forwards.

Albermarle

I noticed yesterday Sharia was about-0.08% and the 2040 fund was down about 0.7% on the ft website 

You can not read anything at all into what has happened in a single day. It tells you nothing whatsoever.
Both are investments funds so they will fluctuate every day .

so I don’t think any fund is safe at the moment.

Both these funds are regulated funds run by a large mainstream pension provider. They only contain regulated mainstream investments within them . So from that point of view they are both 'safe' in that they will not disappear or drop to zero.

However that does not mean they may lose a large % of their value rather quickly in a market crash (most likely than the Sharia one more ). 

Mr_Benn

I think a lot of us 'smaller' investors are spooked by the market drops. Especially when all we have seen the last couple of years is rises, especially in the Magnificent 7 shares. The Market Makers make rich on the likes of us panic selling when prices are low, and then buying back when high !

Im as guilty as anyone, checking my fund every day (thats the 'fun' part isnt it !) , and seeing my SIIP pot drop about 15% and thinking do I sell it all.  But as others have said, you then risk the chance of not holding the Funds when they go back up. (which history tells you they eventually will).

Im only 3 years away from retirement, but if your 15 years then the usual advice would be to hold. Markets never go up all the time.  Ive also got a Shariah Fund with my workplace pension, but with another large pension providor. Im not sure how linked they are, but they have took the same big hit as the Original Posters. 

samps1973

I thought I’d share what I ended up doing just incase others read this thread.

I opened a hargreves lansdown account with £100 but when the account was opened I found out that it cost £11.95 each time you want to buy and they do not do fractional shares. Although their customer service was very good and I’m sure certain types of investors would benefit from this company, it wasn’t for me. I was refunded the £100.

I ended up opening a sipp with Invest engine. It is very flexible. They only do etf’s or funds and you can have as many as you like so makes your portfolio very diversified.

I changed my pension from the sharia to the nest higher risk fund as it has about 2,400 shares which is the same as the standard nest 2040 fund but with more risk which I am happy with as I have about another 16 years left to retirement. I will probably switch back to the 2040 fund closer to retirement.

I dug a little deeper with the Sharia fund and found out that they have also added I think 30% worth of bonds and apparently a lot of investors have been turned off by this. Also with only having around 200 stocks it’s not very diversified and as someone mentioned above it’s heavily waited towards tech.

I am going to compare the monthly % increase or decrease of the sipp and the nest pension and if the nest pension performs better over a year by a large amount I will continue to add the overpayments back to them but I also have to take into account the fees with nest which I think is 1.8% on each transaction and £300 per year or so. 

I have 8 etfs with my sipp and the total ter is 0.3%. I am managing it myself as I know a bit about investing but they also do sipp pensions that they manage for you for a 0.25% fee on top of the total ter.

Thanks for all your help guys 👍

BlackKnightMonty

How is your fund looking now; must have bounced back a bit?