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SIPP newbie - advice please


Boglet

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I need to dump a 5 figure sum into a SIPP before the end of the tax year to get me below the higher tax bracket and retain child benefit etc.

In future years I’ll continue to put in say £1000 per month.

I’m a complete noob at this – which SIPP provider should I go with? Vanguard, HL? I won’t be doing loads of trades etc.

Once the money is in the SIPP should I immediately move it into an investment or should I leave it sat in there and wait a bit?

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Frank Hovis

@Boglet

 

Which SIPP provider you use depends upon your attitude to investing.

If you are simply going to dump it into index trackers and leave it (my current strategy) then Vanguard is good because its costs are so low.

If however you want to be able to have a full range of funds and swap between them frequently, say specialist medical / drug co funds, IT start ups, miners etc. (my previous strategy), then HL will give you that flexibility but Vanguard won't as it only offers its own funds.

I was with HL for decades but last year I moved to Vanguard as I am now a more passive investor and the lower, and more importantly capped, fees of Vanguard are saving me thousands in fees each year.

 

As to when you go in well the actuarial answer would be that you should be looking at long term investing and if you're going to hold it for ten or twenty years then it doesn't really matter when you invest it because you will have ten / twenty years growth which will outweigh small initial differences.

Of course if you think that a huge correction is imminent you should hold off.

The Dow is down from 37k at the start of the year to 34k having bounced back from 33k so IMHO the correction that I was thinking was due through the last year has now happened.

 

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Green Devil
6 hours ago, Frank Hovis said:

@Boglet

 

Which SIPP provider you use depends upon your attitude to investing.

If you are simply going to dump it into index trackers and leave it (my current strategy) then Vanguard is good because its costs are so low.

If however you want to be able to have a full range of funds and swap between them frequently, say specialist medical / drug co funds, IT start ups, miners etc. (my previous strategy), then HL will give you that flexibility but Vanguard won't as it only offers its own funds.

I was with HL for decades but last year I moved to Vanguard as I am now a more passive investor and the lower, and more importantly capped, fees of Vanguard are saving me thousands in fees each year.

 

As to when you go in well the actuarial answer would be that you should be looking at long term investing and if you're going to hold it for ten or twenty years then it doesn't really matter when you invest it because you will have ten / twenty years growth which will outweigh small initial differences.

Of course if you think that a huge correction is imminent you should hold off.

The Dow is down from 37k at the start of the year to 34k having bounced back from 33k so IMHO the correction that I was thinking was due through the last year has now happened.

 

Ill second this. The fees are quite a substantial figure. I think they are running 1% a year. Bear in mind youll need to be a good investor to get more return than this 😂😂

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