LifeStrategy 80% Equity Fund - set and forget SIPP?
Posted: April 25th, 2023, 1:29 pm
Hi all,
I have recently ended my long-standing relationship with my IFA and moved my SIPP over to interactive investor to take advantage of the lower platform fees. My portfolio currently stands at £350,000 so the fees were all adding up (combined 2% with advisor fees, their platform fees and the funds fees they had me in!)
I liquidated my funds into cash for the transfer as I didn't want to carry on with ones like Fundsmith Equity Fund Class I (Acc) weren't delivering the goods with the fund charge of 0.94%
I am considering trying to time the market as best I can (haha) and reinvest the majority of this cash into:
LifeStrategy 80% Equity Fund (Acc)
My reasoning for this is that I should be able to 'set and forget' with a fund like this. Yes the fees aren't the lowest they could be at 0.22% but I think on the whole it might suit me well.
I am 45 years old and in a very fortunate position to be able to pay £60,000 per year into my SIPP each year. My aim is to build this up to over 1 million in the next 10 years (ideally sooner!). I have no pressing need to retire.
I would welcome your thoughts on this as more experienced investors. I am new to the DIY space, but I am learning quickly.
I want to have low platform fees and low fund fees and basically be passive tracking the index.
Should I be considering LifeStrategy 100 instead? Might the bonds just slow my returns down? Why does interactive investor have a less positive impression of the 100% fund? Again MorningStar seem more in favour of 80%.
Does anyone think I would be better off investing in the following index funds instead?
- HSBC FTSE All-World Index Fund Accumulation C
- iShares MSCI ACWI UCITS ETF (Acc)
- Vanguard FTSE All-World UCITS ETF (VWRP) Acc
If I did go with LifeStrategy, would it be wise to run it alongside an S&P index tracker in order to water down the UK overweighting found in LifeStrategy funds?
Thanks in advance for your advice.
I have recently ended my long-standing relationship with my IFA and moved my SIPP over to interactive investor to take advantage of the lower platform fees. My portfolio currently stands at £350,000 so the fees were all adding up (combined 2% with advisor fees, their platform fees and the funds fees they had me in!)
I liquidated my funds into cash for the transfer as I didn't want to carry on with ones like Fundsmith Equity Fund Class I (Acc) weren't delivering the goods with the fund charge of 0.94%
I am considering trying to time the market as best I can (haha) and reinvest the majority of this cash into:
LifeStrategy 80% Equity Fund (Acc)
My reasoning for this is that I should be able to 'set and forget' with a fund like this. Yes the fees aren't the lowest they could be at 0.22% but I think on the whole it might suit me well.
I am 45 years old and in a very fortunate position to be able to pay £60,000 per year into my SIPP each year. My aim is to build this up to over 1 million in the next 10 years (ideally sooner!). I have no pressing need to retire.
I would welcome your thoughts on this as more experienced investors. I am new to the DIY space, but I am learning quickly.
I want to have low platform fees and low fund fees and basically be passive tracking the index.
Should I be considering LifeStrategy 100 instead? Might the bonds just slow my returns down? Why does interactive investor have a less positive impression of the 100% fund? Again MorningStar seem more in favour of 80%.
Does anyone think I would be better off investing in the following index funds instead?
- HSBC FTSE All-World Index Fund Accumulation C
- iShares MSCI ACWI UCITS ETF (Acc)
- Vanguard FTSE All-World UCITS ETF (VWRP) Acc
If I did go with LifeStrategy, would it be wise to run it alongside an S&P index tracker in order to water down the UK overweighting found in LifeStrategy funds?
Thanks in advance for your advice.