Investment Suggestions

Speedbird676 · 24 May 2019 at 2:29PM

I'm looking for suggestions on how best to invest the following.

I have an occupational pension from an old job I left in 2012, which stands at about £30k. I'm looking to consolidate this into a new pension wrapper and make a one off contribution of £40k to give the pot a boost, so £70k in total. I intend to make regular contributions going forward.

I also have £60k in a Cash ISA, that I am looking to move to an S&S ISA. This will be left invested long term and I intend to contribute the full £20k ISA allowance each year going forward.

I'd describe my risk tolerance as medium and although I consider myself financial savvy I have little to no experience investing in an S&S environment, so would probably be looking at mixed asset funds as opposed to trying to build a portfolio myself.

ChopperST · 24 May 2019 at 2:44PM

Timescales would be useful. Are you currently employed and paying into an occupational pension? If you are you wouldn't be able to pay any more than £40k into the SIPP unless you have carry over from previous years.

ColdIron · 24 May 2019 at 2:48PM

And that £40k is gross, £32k from you and £8k from HMRC

Speedbird676 · 24 May 2019 at 2:49PM

I am 37, so the pension would be invested for at least 21 years. Likewise, I don't see any need to touch the ISA in those timescales.

I am self employed so not currently paying into any pensions, hence the plan to "top up" with a lump sum and then start contributing regularly going forward.

Speedbird676 · 24 May 2019 at 2:50PM

ColdIron wrote: »

And that £40k is gross, £32k from you and £8k from HMRC

The contribution will be made from my limited company.

ChopperST · 24 May 2019 at 3:29PM

You have time on your side to have a high equity allocation but perhaps not 100%

You might find this article from Vanguard useful - https://www.vanguardinvestor.co.uk/articles/latest-thoughts/how-it-works/lifestrategy-versus-target-retirement-funds?cmpgn=ET0519UKCENLC0002

Albermarle · 24 May 2019 at 3:31PM

so would probably be looking at mixed asset funds as opposed to trying to build a portfolio myself.

This would probably be sensible to begin with and then as you maybe learn more you could develop your strategy . With a multi asset fund you still have to decide the correct risk level. Normally at your age with many years to go to retirement, you should go at least medium/high risk , which means having a multi asset fund with approx. 80% equities ( some would say 100%) You have plenty of time to ride out the ups and downs of the market However if you would feel uncomfortable with the potential volatility , then maybe better with 60:40 fund which is the bog standard.
Although passive multi asset funds ae not expensive , you can cut costs to the bone by buying trackers and balancing the equity/bond split yourself.

Linton · 24 May 2019 at 3:37PM

A higher equity(60%-80%?) mixed asset fund could be appropriate for your circumstances. In truth it doesnt matter much which one of the mainstream offerings you choose. You should not need more than one fund. Blackrock, HSBC, L&G, Vanguard are just some of the major fund managers with suitable multi-asset offerings.

DrSyn · 24 May 2019 at 11:29PM

1. Watch these:-

http://www.kroijer.com/

https://www.ifa.com/indexfundsthemovie/

2. Multi-Asset Funds

Vantage Life Strategy
HSBC Global Strategy
L&G Multi Index Funds
Blackrock Consensus
Architas Passive

These have wide diversification while minimising risk, at low cost.

Life Strategy seems the most often mentioned. The 60% shares/ 40 % bonds seems to me pretty much a "fire and forget" option.

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds?intcmpgn=lifestrategyfunds_learnmore_link

There is also Fidelity Multi Asset Allocator

Baillie Gifford Managed. Holds individual shares, rather than index funds.

Thrugelmir · 24 May 2019 at 11:52PM

DrSyn wrote: »

Life Strategy seems the most often mentioned. The 60% shares/ 40 % bonds seems to me pretty much a "fire and forget" option.

Bonds aren't exactly appealing at the moment. With a 40% weighting . The equity portfolio has some heavy lifting to do.

Comment made in the context that the OP has time on their side.

Speedbird676 · 26 May 2019 at 1:58PM

DrSyn wrote: »

2. Multi-Asset Funds

Vantage Life Strategy
HSBC Global Strategy
L&G Multi Index Funds
Blackrock Consensus
Architas Passive

Thanks everybody for your suggestions.

Are all of these available in both pension and ISA wrappers? Would there be any particular advantage/disadvantage to holding the same fund in both a pension and ISA wrapper or would it be better to have the same fund for each?

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