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Funds or further shares in SIPP
Posted: 18 March 2018 11:54:23(UTC)

Joined: 18/03/2018(UTC)
Posts: 1

Hi all

great site here - it's provided many interesting hours of reading so far..

I'm wondering if I can further tax everyones generosity in sharing their opinion about a general strategy for my investments..

At the moment I am just considering how to use an excess of cash in a SIPP. Current total value of the wife & I's SIPPs is £560k, of which £250k is in US tech shares, and £310k in cash (due to recent using up of last few years allowances).

We have done well out of the tech shares, and previously bought UK bank shares at their 2008 low, and sold them a few years later, so we have bootstrapped the value of our SIPP up with very little contributions as self-employment means our incomes are wildly variable.

It is unlikely that we will be able to make SIPP contributions of any significance over the next few years, but we will not need access for a while - we are both early '50's but will not be retiring ever.

Sorry if that's too much rambling detail!

Anyway, I am planning to keep the tech shares - all the major players- and am wondering what to do with the cash. Obviously that will depend on my longer term investment strategy, but in the short term I am willing to be reasonably open to risk in order to grow the size of the SIPP. I think though I should diversify as at the moment I am exposed to currency fluctuations as well as the share price movement.

I do have shares in an ISA which is invested in UK shares, but these have done poorly on the whole over the last 4 years, so I'm nervous about investing myself in UK markets, which is why I am considering funds.

So - first question - is there any point in keeping cash at all in a SIPP? Or would you just choose very low risk funds as a 'cash' substitute?

What proportion high risk funds to low risk?

And are funds an expensive option if I am happy to accept the risk of shares?

I'm sure my questions are pretty basic, but would be grateful if anyone chose to comment.

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