Self Managing a Sipp
Discussion
Leading on from a previous thread about Sipp. As I am unable to remove the money invested I am looking into self managing the fund with a view to establishing a bit more growth than at the moment. I am able to take a quarter at 35 and I am assuming it will be a quarter of what it's worth on the date of my 35th birthday.
I am not from a financial background. Is it realistic to attempt self managing or am I asking for trouble.
I would appreciate some advice and first hand experience from people who have attempted this.
I am so busy at the moment so this is my start point but I intend to have a day of information gathering and getting update figures but around £13-14k fund value.
Thanks in advance.
I am not from a financial background. Is it realistic to attempt self managing or am I asking for trouble.
I would appreciate some advice and first hand experience from people who have attempted this.
I am so busy at the moment so this is my start point but I intend to have a day of information gathering and getting update figures but around £13-14k fund value.
Thanks in advance.
yes, there are plenty of basic investment books about, and have been many recommendations on this forum in the past
but really you just need some simple strategy, buy some blue chips companies paying good dividends, review once every 6-12 months ...buy in the dips.thats as little as you have to do...you are not talking about becoming a day trader
with £14k keep it to a few companies, dont spread yourself too thin...
most likely now the money is in some mutual funds paying a few percent and taking management fees...decide for yourself where you want the money i.e. in some companies you understand a bit about and save the management fees for starters...a 1% compounded over 25 years is a lot of money
teach yourself to look after your own money and it will save you ££££ long term
but really you just need some simple strategy, buy some blue chips companies paying good dividends, review once every 6-12 months ...buy in the dips.thats as little as you have to do...you are not talking about becoming a day trader
with £14k keep it to a few companies, dont spread yourself too thin...
most likely now the money is in some mutual funds paying a few percent and taking management fees...decide for yourself where you want the money i.e. in some companies you understand a bit about and save the management fees for starters...a 1% compounded over 25 years is a lot of money
teach yourself to look after your own money and it will save you ££££ long term
I would recommend taking charge of your own financial affairs but only if you have the time to do so.
As well as making the initial investment decision you need to decide which provider to use. You need to regularly review how they are doing and spend the time to decide what changes to make when your circumstances or attitude to risk changes.
With no financial background and only a day to spare....forget it.
As well as making the initial investment decision you need to decide which provider to use. You need to regularly review how they are doing and spend the time to decide what changes to make when your circumstances or attitude to risk changes.
With no financial background and only a day to spare....forget it.
LeoSayer said:
I would recommend taking charge of your own financial affairs but only if you have the time to do so.
As well as making the initial investment decision you need to decide which provider to use. You need to regularly review how they are doing and spend the time to decide what changes to make when your circumstances or attitude to risk changes.
With no financial background and only a day to spare....forget it.
Just to clarify I meant one day just to sit down and have a really good read up and research to see if it's for me. As well as making the initial investment decision you need to decide which provider to use. You need to regularly review how they are doing and spend the time to decide what changes to make when your circumstances or attitude to risk changes.
With no financial background and only a day to spare....forget it.
Definitely do it yourself - it is not complicated.
If you haven't bought and sold stocks in the past then do not just jump straight in...read these books first!
Warren Buffet - Snowball
Financial Times Guide To Investing
If you haven't bought and sold stocks in the past then do not just jump straight in...read these books first!
Warren Buffet - Snowball
Financial Times Guide To Investing
Personally I would just bung it in a FTSE or S&P tracker.
If you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.
While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).
Even the full time fund managers can't outperform the index.
If you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.
While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).
Even the full time fund managers can't outperform the index.
walm said:
Personally I would just bung it in a FTSE or S&P tracker.
If you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.
While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).
Even the full time fund managers can't outperform the index.
This, all day long. Don't waste any time on trying to teach yourself investment strategies and trading techniques. Sit quietly for an hour and ask yourself: knowing what I do about the world, do I think that any particular country, region, or industrial sector is going to do relatively better over the next twenty years.If you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.
While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).
Even the full time fund managers can't outperform the index.
Take your top three answers. Go to your SIPP provider. Look up the relevant index tracker or ETF for each of your three areas. Buy 4.5k's worth of each one. Go to the pub.
Review your thoughts annually. As you get to your 50's, start to move the investments over to bond-like products rather than equity-like ones.
walm said:
Personally I would just bung it in a FTSE or S&P tracker.
If you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.
While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).
Even the full time fund managers can't outperform the index.
LOLIf you do 10 trades a year, your transaction costs will knock 1% off performance which is highly significant.
While the "blue chips/buy on dips" might sound like great advice, all it takes is one Macondo spill or LIBOR scandal to destroy many years of performance in a concentrated portfolio (<10 stocks).
Even the full time fund managers can't outperform the index.
traders market for the past 12 years why do you think its going to change?
ftse circa 7000 beginning 2000 IIRC
dingg said:
LOL
traders market for the past 12 years why do you think its going to change?
ftse circa 7000 beginning 2000 IIRC
Glad I amuse you.traders market for the past 12 years why do you think its going to change?
ftse circa 7000 beginning 2000 IIRC
Who are these "traders" you speak of?
Those expert fund managers who have FAILED to outperform the index?
Or are you talking about momentum driven day traders?
Neither of which the OP is looking to become.
Feel free to pick another point in the FTSE's history that was also at the top of a bubble!
Personally, I read this http://www.amazon.co.uk/gp/product/0273722077/ref=...
and then put all my SIPP money into a Vanguard Life Strategy Fund.
and then put all my SIPP money into a Vanguard Life Strategy Fund.
walm said:
Glad I amuse you.
Who are these "traders" you speak of?
Those expert fund managers who have FAILED to outperform the index?
Or are you talking about momentum driven day traders?
Neither of which the OP is looking to become.
Feel free to pick another point in the FTSE's history that was also at the top of a bubble!
some data here for you to chew overWho are these "traders" you speak of?
Those expert fund managers who have FAILED to outperform the index?
Or are you talking about momentum driven day traders?
Neither of which the OP is looking to become.
Feel free to pick another point in the FTSE's history that was also at the top of a bubble!
ftse doesn't fare too well IMO
http://www.forecast-chart.com/historical-ftse-100....
dingg said:
walm said:
Glad I amuse you.
Who are these "traders" you speak of?
Those expert fund managers who have FAILED to outperform the index?
Or are you talking about momentum driven day traders?
Neither of which the OP is looking to become.
Feel free to pick another point in the FTSE's history that was also at the top of a bubble!
some data here for you to chew overWho are these "traders" you speak of?
Those expert fund managers who have FAILED to outperform the index?
Or are you talking about momentum driven day traders?
Neither of which the OP is looking to become.
Feel free to pick another point in the FTSE's history that was also at the top of a bubble!
ftse doesn't fare too well IMO
http://www.forecast-chart.com/historical-ftse-100....
Doesn't fare too well relative to WHAT??
It has shown 10% CAGR since 1985 ex-divs so that's not bad for a long term buy and hold strategy that I am advocating.
What strategy are you suggesting the OP employ?
So far you have said my suggestion was bad - why not be constructive and give him another option?
ok here goes the other option
may have to register but this thread is interesting
http://uk.advfn.com/cmn/fbb/thread.php3?id=9227087
maybe stick 75% in a range of aim oilers and 25% into Indian indices if you just want to sit back and enjoy the ride
hth
would definitely not be sticking into a ftse tracker
uk on its arse and nothing I can see will change in the future
stockpickers will continue to do ok but to plump it into an index and accept 10% over 10 years does nothing for me I'm afraid
may have to register but this thread is interesting
http://uk.advfn.com/cmn/fbb/thread.php3?id=9227087
maybe stick 75% in a range of aim oilers and 25% into Indian indices if you just want to sit back and enjoy the ride
hth
would definitely not be sticking into a ftse tracker
uk on its arse and nothing I can see will change in the future
stockpickers will continue to do ok but to plump it into an index and accept 10% over 10 years does nothing for me I'm afraid
one things for sure, ask 20 people for investment ideas and you get 20 answers 
other than short term gambling, it can take many years for strategies to be proven or not, so its hard to know what to do
everyone has different circumstances, experience, attitude to risk, goals etc etc, so all you can do is educate yourself and make your own decisions
if you win its down to you, if you lose, you learn and you cant blame anyone else
You have a lifetime ahead of you to learn, so dont rush to do something with what youve managed to save right now, spend a few months reading up and it will pay off later
I sure wish id paid more attention when I was your age...I had one of those safe government jobs with the good pension too at the time
other than short term gambling, it can take many years for strategies to be proven or not, so its hard to know what to do
everyone has different circumstances, experience, attitude to risk, goals etc etc, so all you can do is educate yourself and make your own decisions
if you win its down to you, if you lose, you learn and you cant blame anyone else
You have a lifetime ahead of you to learn, so dont rush to do something with what youve managed to save right now, spend a few months reading up and it will pay off later
I sure wish id paid more attention when I was your age...I had one of those safe government jobs with the good pension too at the time
AdeTuono said:
Ruskie said:
I am able to take a quarter at 35 and I am assuming it will be a quarter of what it's worth on the date of my 35th birthday.
Are you sure that's correct? I was led to believe that you can't take your 25% lump sum until 55. Happy to be proved wrong though.Seems to be a split between go for it and leave it, it's not worth the hassle.
I have a friend who trades from home as a living and seems to be doing ok. He has said when I get the details he will be able to suggest a number of investments. He trades normally smaller gas and oil companies as his family has history in that area over a long period.
Thanks for the comments all very helpful. Keep them coming!
I have a friend who trades from home as a living and seems to be doing ok. He has said when I get the details he will be able to suggest a number of investments. He trades normally smaller gas and oil companies as his family has history in that area over a long period.
Thanks for the comments all very helpful. Keep them coming!
Online SIPP is now set up. Make it a little easier to assess now I have real time access to where the investments are.
Interesting to note looking at how the fund has progressed. Since 2006 it has grown by 27% and 5.5% in the last year. It would be naive of me to think I could increase that return with my meagre knowledge!
I have another separate pension set up with a small amount in, approx £750. Can I transfer this into my SIPP?
Interesting to note looking at how the fund has progressed. Since 2006 it has grown by 27% and 5.5% in the last year. It would be naive of me to think I could increase that return with my meagre knowledge!
I have another separate pension set up with a small amount in, approx £750. Can I transfer this into my SIPP?
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