SIPP's and tracker funds

[uwtc]

This is the kind of thing that's been making me want to increase my US exposure.

From today's FT:

the US economy has become a lot less confusing. The economy is growing roughly at, or possibly a bit above, its long-term potential. Inflation is not back to target, but it’s close. Consumer confidence, long depressed and much debated, has in recent months begun to rise.*Most importantly, sectoral shifts and supply shocks have settled down. The New York Fed’s global supply chain disruption index has been bang in line with the long-run average since November 2023, shrugging off a clogged Panama Canal and war-stricken Red Sea.


given a 'normalised' US economy, with inflation under control, and interest rates surely trending downward, it's hard for me to see why share prices would tank. (obviously, i dont know anything...)

As others have said no one knows how the stock market will behave one day to the next, let alone months and years in advance but a couple of potential flies in the ointment might be the good news is already priced in (stock markets are forward looking) and that with the rest of the US economy picking up we simply see a rotation out of the Mag 7 that have been almost solely responsible for the huge rally into other sectors meaning the indexes as a whole underperform.

[Montello]

As others have said no one knows how the stock market will behave one day to the next, let alone months and years in advance but a couple of potential flies in the ointment might be the good news is already priced in (stock markets are forward looking) and that with the rest of the US economy picking up we simply see a rotation out of the Mag 7 that have been almost solely responsible for the huge rally into other sectors meaning the indexes as a whole underperform.

Your inbox is full ...

[M1011]

How are people reacting to the ever moving Lifetime Allowance goalposts? Don’t particularly care which route they go, but it’s tricky to plan long term around it. Are folk assuming they stay as-is or assuming it’ll be back in the next cycle?

[Montello]

How are people reacting to the ever moving Lifetime Allowance goalposts? Don’t particularly care which route they go, but it’s tricky to plan long term around it. Are folk assuming they stay as-is or assuming it’ll be back in the next cycle?

Trying to predict future political moves makes forecasting markets look easy ...

.... now i'm wondering if i need more diversification!

If only we knew ... I guess it gets easier to think ... would I buy a load of Apple stock now at the current levels, then move on the Meta and so on ... the Magnificent 7 really have had a good run ...

[murkeywaters]

Just picked up on this very informative thread.

I have a frozen pension with Prudential that I want to transfer and start adding to over the next 10 years, the transfer figure comes to about £20k so nothing much in the world of pensions but hoping I can top this up and in the process, save on some tax and learn a lot more about investing in different indexes/funds.

Vanguard are my first port of call and I can see plenty of people here have experience with them, I see they have a managed SIPP with slightly higher fees and a do it yourself SIPP, the DIY route still looks to have set funds in different percentages so its a bit like a set menu rather than an individual choice of funds, does that make sense?

Any advice from other VG investors would be very welcome and hopefully I can get this £20k working better for me and learn a lot in the process..

[murkeywaters]

Just picked up on this very informative thread.

I have a frozen pension with Prudential that I want to transfer and start adding to over the next 10 years, the transfer figure comes to about £20k so nothing much in the world of pensions but hoping I can top this up and in the process, save on some tax and learn a lot more about investing in different indexes/funds.

Vanguard are my first port of call and I can see plenty of people here have experience with them, I see they have a managed SIPP with slightly higher fees and a do it yourself SIPP, the DIY route still looks to have set funds in different percentages so its a bit like a set menu rather than an individual choice of funds, does that make sense?

Any advice from other VG investors would be very welcome and hopefully I can get this £20k working better for me and learn a lot in the process..

After much deliberation and "self financial advice/due diligence" I have gone for the Vanguard S&P 500 ETF with dividends being reinvested and a very small 0.07% fee per year, I transferred an old pension and will top up on a monthly basis and hope to keep it there for about 15-17 years.

I looked at lots of other funds but came to the conclusion of - who do I think I'am to try and out smart the S&P 500, it will no doubt go up and down but hopefully time will iron out the creases.

[Ikincooper]

After much deliberation and "self financial advice/due diligence" I have gone for the Vanguard S&P 500 ETF with dividends being reinvested and a very small 0.07% fee per year, I transferred an old pension and will top up on a monthly basis and hope to keep it there for about 15-17 years.

I looked at lots of other funds but came to the conclusion of - who do I think I'am to try and out smart the S&P 500, it will no doubt go up and down but hopefully time will iron out the creases.

I’d say you’ve made a very smart choice. Now let that market do its think and ensure you uphold your side of the equation by consistently investing and not worrying about the ups and downs.

Often easier said than done


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[robinsongreen68]

As others have said no one knows how the stock market will behave one day to the next, let alone months and years in advance but a couple of potential flies in the ointment might be the good news is already priced in (stock markets are forward looking) and that with the rest of the US economy picking up we simply see a rotation out of the Mag 7 that have been almost solely responsible for the huge rally into other sectors meaning the indexes as a whole underperform.

right, that does make sense. anyway as i started off saying, VWRP is giving me 66% US exposure as it is. now i'm wondering if i need more diversification!