Case Study | Portfolio Review

FEBRUARY 2022

In this case study, our Head of Research James Calder looks at helping a client grow his £241,000 SIPP steadily over a 10 to 15-year horizon. Extracts from this case study were first published in the Telegraph on 6th February 2022.

Background

Mr X has £241,000 cash in his SIPP. He is 68 with heart problems and wants the portfolio to grow for his wife (aged 57).

He also has a property portfolio that his wife can live off as well as another pension, so canafford to lose the money. It may be the case that his wife never needs the money, and it would be passed to the children.

He has put a 10 – 15 year horizon on the portfolio and wants it to grow steadily.

He has come prepared with four questions:

1) His base case would be for a 80:20 stocks to bonds portfolio – does this sound sensible?

2) Which funds should be buy to ensure a diversified portfolio?

3) He wants to avoid the US market as it is very expensive and he is attracted to the UK as it is far cheaper. Is it sensible to have nothing invested in the US market?

4) He made the mistake of selling everything in 2019 because he was worried about a market crash. How can he prepare a portfolio that he is not worried about market timing with?