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SIPP Cash
MJPM
Posted: 16 March 2017 11:04:00(UTC)
#1

Joined: 15/03/2017(UTC)
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Hello, just joined this very helpful forum. We have some cash sitting in a SIPP and want to gradually invest in passive funds. We retired last year so it can stay invested for 5/10 years. My plan is to use Vanguard Life Strategy 60/40 or 40/60.
Blackrock 100 UK Equity Fund
L&G All Stocks Gilt Index Trust or Finsbury Growth & Income

Does the above appear in order for a relatively low risk investment. Any help appreciated, especially what % should go into what Fund.
Law Man
Posted: 16 March 2017 16:59:59(UTC)
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I suggest you go back 3 stages:

1. What is your investment period? You say you have just retired. If you are age 65, you need the SIPP money to last for 20 - 30 years. Much longer than 5-10 years. This means you need growth equities as well as income.

Will you take the 'natural yield' as income (leaving the capital to beneficiaries), or will you gradually withdraw the capital? If the latter, you still need to conserve the reducing capital.

2. What is your attitude to risk? No right or wrong; but over 30 years you have time to allow equities to perform.

3. Asset allocation is far more important than stock choice. Have you planned this e.g. 50% in adventurous equities, 25% in bonds, rest in infrastructure, wealth preservation, etc.

Have you diversified geographically, not putting all in UK, with some US, West Europe, Japan, Asia exc Japan.

Only now do we come to choice of stocks. Consider ETF trackers for US and some others; and investment trusts. Watch the charges.

If you want to keep it simple - often good - go for an appropriate Vanguard Lifestyle fund.
3 users thanked Law Man for this post.
mohan on 19/03/2017(UTC), MJPM on 20/03/2017(UTC), Mike L on 20/03/2017(UTC)
MJPM
Posted: 16 March 2017 19:43:43(UTC)
#3

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Thank you for your reply. We will not be touching the cash for 10 years and want to keep it invested rather then sitting in cash. We also have a GIA and ISA's which is why this SIPP needs to be a passive investment. On that basis what would you recommend.
Christopher Holmes
Posted: 20 March 2017 08:24:15(UTC)
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Joined: 20/11/2016(UTC)
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MJPM - your question is clear and reflects my own needs, being past retirement age but reasonably healthy so not in urgent need of income. I am looking for income funds with a good record and prospects, but will pick the accumulation class initially, and simply switch to the fund's income class when necessary. So I look forward to any further answers from the experts.
1 user thanked Christopher Holmes for this post.
MJPM on 20/03/2017(UTC)
kWIKSAVE
Posted: 20 March 2017 09:52:06(UTC)
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Have a look at Evenlode Income ( I do not hold this).

It is a fine fund.
MJPM
Posted: 20 March 2017 10:32:04(UTC)
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Thank you for bringing this topic back to life. Have done a lot of research and have decided to gradually move cash into Vanguard Lifestrategy 60/40 and a few other similar funds. The money we have invested in bonds, investment trusts etc was done by our financial advisor. This SIPP we are on our own with having parted company with the advisor.
Joe Soap
Posted: 20 March 2017 11:13:23(UTC)
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kWIKSAVE;44818 wrote:
Have a look at Evenlode Income ( I do not hold this).

It is a fine fund.

Indeed, also take a look at Trojan Income. One of my stalwart income funds. Rarely fails to deliver, year in, year out.
1 user thanked Joe Soap for this post.
MJPM on 20/03/2017(UTC)
MJPM
Posted: 20 March 2017 11:23:07(UTC)
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What about CF Woodford Income Focus Fund?
RL
Posted: 20 March 2017 13:15:42(UTC)
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If you are investing in trackers beware the platform fees. They can me many times the management fees.
1 user thanked RL for this post.
MJPM on 20/03/2017(UTC)
Mickey
Posted: 20 March 2017 14:12:31(UTC)
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May be worthwhile taking a look at the current and past 'White List' that monitors income funds. You can find it here- http://www.whitelist.co.uk/income-study/
1 user thanked Mickey for this post.
MJPM on 20/03/2017(UTC)
kWIKSAVE
Posted: 20 March 2017 15:21:18(UTC)
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Please stay away from Neil Woodford ....overrated.
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MJPM on 20/03/2017(UTC)
David 111
Posted: 21 March 2017 09:16:55(UTC)
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I would also advise against using funds (unit trusts and oeics) rather than etfs and investment trusts. Depending on your platform the charges on funds can be very significant (even if the fund management charges seem low) as compared with etfs and investment trusts.
1 user thanked David 111 for this post.
MJPM on 21/03/2017(UTC)
Christopher Holmes
Posted: 22 March 2017 18:07:51(UTC)
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AJ Bell have a 'webinar' soon on Investment Trusts.
MJPM
Posted: 22 March 2017 18:54:59(UTC)
#14

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Thanks everyone for your help. Any thoughts on Targeted Absolute Return funds? We have some money in these as arranged by our IFA, but thinking of pulling out of them.
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