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  • FIRST POST
    • wiltshiregirl69
    • By wiltshiregirl69 14th Feb 18, 6:51 PM
    • 32Posts
    • 15Thanks
    wiltshiregirl69
    Just sold property in a SIPP - 305k to invest.
    • #1
    • 14th Feb 18, 6:51 PM
    Just sold property in a SIPP - 305k to invest. 14th Feb 18 at 6:51 PM
    I have consolidated my SIPPs by selling a property held in one which released around 200k and moved another SIPP (fund) (105k) which had high charges (circa 3.5%,) all to HL where I have a preexisting SIPP (~185k) currently invested with fund choices from HLs recommended ones (mainly active ones such as Lindsell Train etc). So I now have one HL SIPP with 185k invested and 305k cash to invest. I would like to try and achieve around 800k - 1million pension pot over the next 7 - 10 years with the maximum 40k pension contributions each year.

    I am looking at investing in a Vanguard tracker and potentially moving the whole SIPP to Vanguard when they offer SIPPs later this year with a view to lowering my risk towards retirement and low costs. But any helpful suggestions as to what to do would be very welcome- or to wait and see if this volatility in the markets turns into a more serious correction before investing at all.
Page 1
    • AlanP
    • By AlanP 14th Feb 18, 8:54 PM
    • 1,206 Posts
    • 866 Thanks
    AlanP
    • #2
    • 14th Feb 18, 8:54 PM
    • #2
    • 14th Feb 18, 8:54 PM
    Be aware of the LTA if you think you might get close to 1M.

    General idea is not to try and time the market so just go "all in". Sounds great in theory but when it's your 300k I would think the practice is a bit harder to do.

    Nobody knows where markets will go so maybe investing it over 12, or say 15 months may provide a comfort blanket. Markets could still fall off a cliff in month 16 though.

    What I would say is yours is a nice problem to have. Money is inside pension wrapper and the long term looks like it will be taken care of.
    • Thrugelmir
    • By Thrugelmir 14th Feb 18, 9:05 PM
    • 58,946 Posts
    • 52,274 Thanks
    Thrugelmir
    • #3
    • 14th Feb 18, 9:05 PM
    • #3
    • 14th Feb 18, 9:05 PM
    Be aware of the LTA if you think you might get close to 1M.
    Originally posted by AlanP
    Rises by 30k in April 2018 as now linked to CPI.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Drp8713
    • By Drp8713 14th Feb 18, 9:36 PM
    • 801 Posts
    • 684 Thanks
    Drp8713
    • #4
    • 14th Feb 18, 9:36 PM
    • #4
    • 14th Feb 18, 9:36 PM
    I have consolidated my SIPPs by selling a property held in one which released around 200k and moved another SIPP (fund) (105k) which had high charges (circa 3.5%,) all to HL where I have a preexisting SIPP (~185k) currently invested with fund choices from HLs recommended ones (mainly active ones such as Lindsell Train etc). So I now have one HL SIPP with 185k invested and 305k cash to invest. I would like to try and achieve around 800k - 1million pension pot over the next 7 - 10 years with the maximum 40k pension contributions each year.

    I am looking at investing in a Vanguard tracker and potentially moving the whole SIPP to Vanguard when they offer SIPPs later this year with a view to lowering my risk towards retirement and low costs. But any helpful suggestions as to what to do would be very welcome- or to wait and see if this volatility in the markets turns into a more serious correction before investing at all.
    Originally posted by wiltshiregirl69
    With large amounts invested, % based fees are not your friend.

    If you only held ETFs (of which Vanguard do provide) or Investment Trusts your SIPP fee would be capped at 200 with HL. That is 0.04%.
    • Audaxer
    • By Audaxer 14th Feb 18, 10:48 PM
    • 1,081 Posts
    • 635 Thanks
    Audaxer
    • #5
    • 14th Feb 18, 10:48 PM
    • #5
    • 14th Feb 18, 10:48 PM
    I am looking at investing in a Vanguard tracker and potentially moving the whole SIPP to Vanguard when they offer SIPPs later this year with a view to lowering my risk towards retirement and low costs.
    Originally posted by wiltshiregirl69
    Nearly 500k is a very large amount to invest in the one SIPP, when FSCS protection for SIPPs is only up to a limit of 50k. I know the risk of being affected by a major fraud in the likes of HL or Vanguard is minimal, but I wouldn't keep that amount in the one SIPP or in the one fund within the SIPP.
    • redux
    • By redux 14th Feb 18, 11:12 PM
    • 18,239 Posts
    • 24,131 Thanks
    redux
    • #6
    • 14th Feb 18, 11:12 PM
    • #6
    • 14th Feb 18, 11:12 PM
    An online monthly savings calculator shows that with your current funds and adding 40k a year you would reach 1M in 7 years with annual growth of 5%, or in 10 years with 2%.

    So as per posts 2 and 3, it's worth finding out more how the lifetime allowance works. I don't know much myself as I probably don't need to.
    • Oliver1191
    • By Oliver1191 15th Feb 18, 8:28 AM
    • 49 Posts
    • 13 Thanks
    Oliver1191
    • #7
    • 15th Feb 18, 8:28 AM
    • #7
    • 15th Feb 18, 8:28 AM
    I have consolidated my SIPPs by selling a property held in one which released around 200k
    How did you manage to buy a property with your SIPP?
    • wiltshiregirl69
    • By wiltshiregirl69 15th Feb 18, 10:57 AM
    • 32 Posts
    • 15 Thanks
    wiltshiregirl69
    • #8
    • 15th Feb 18, 10:57 AM
    • #8
    • 15th Feb 18, 10:57 AM
    How did you manage to buy a property with your SIPP?
    Originally posted by Oliver1191
    You can buy commercial property in a SIPP through specific SIPP providers (not all offer it) - the charges are astronomical but if you are lucky and time it right (not easy obviously) there is the increase in capital value (property) and the reinvestment of the rental income into diversified funds.
    • wiltshiregirl69
    • By wiltshiregirl69 15th Feb 18, 11:03 AM
    • 32 Posts
    • 15 Thanks
    wiltshiregirl69
    • #9
    • 15th Feb 18, 11:03 AM
    • #9
    • 15th Feb 18, 11:03 AM
    Nearly 500k is a very large amount to invest in the one SIPP, when FSCS protection for SIPPs is only up to a limit of 50k. I know the risk of being affected by a major fraud in the likes of HL or Vanguard is minimal, but I wouldn't keep that amount in the one SIPP or in the one fund within the SIPP.
    Originally posted by Audaxer
    I'm happy to take the risk and keep all with HL at the moment as the platform fee reduces to 0.25% from 0.45% for funds over 250k. I've googled last night and Vanguard direct have a platform SIPP fee of 0.15% but don't offer SIPPs yet - if and when they do I think I'll transfer the whole lot there. I'm very unhappy with the level of charges within the industry and the amount that has been removed from my various pension pots over the last 30 years is criminal.
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