SIPP PROGRESS

Current Value (As at 25th September 2017) = £147,679 including cash
Target for 31st December 2017 = £170,000 (was £153,000)
Value at commencement of this blog on 1st August 2012 = £51,684.02.
Monthly contributions since commencement of blog = 36mths @ £300 plus 25 months @ £750 = £29,550
Capital Growth = £147,679 less (£51,684.02 + £29,550) = £66,445+

Saturday, 22 April 2017

5-year review

As my SIPP will be 5-years old come August this year, I've undertaken an exercise on my SIPP to investigate how I am performing - and my performance managing my own SIPP has been okay but nothing to write home about.

Back in August 2012, I transferred all my pension funds into a Hargreaves SIPP (where it still is) and set myself a goal of growing the SIPP by 20% per annum (plus any contributions of my own). The SIPP value back then was £51,684. Hargreaves send out a statement every November (to coincide with my birthday, presumably so that you can plan your way to retirement) and I've used those statements to monitor my performance.

Essentially, If I had put my money into an account that paid interest at 13.91% per annum (with my contributions paid in as & when) then I would have been at the value I was at as of 1st November 2016. Is that performance any good? Well, it is certainly better than putting the money into a Building Society or bank paying 1.60%pa or something similar.

However, if I had put my entire SIPP into nothing else but 3i Group (investment trust) PLC (LSE: III) which was trading at approx 215 in August 2012 my SIPP would now have a value of over £185,000 plus the £22,200 contributions plus the dividends (which have averaged about 4%pa) and then there's the growth on the dividends, and the dividends on the contributions (which would take me an age to work out, and even then it would only be an approximation).  I think a conservative estimate would be a SIPP worth £220,000-plus.
Shares in 3i Group are trading at 775.

I think I can safely say that I'm underperforming.  

From 1st August 2012 to 1st November 2013
Starting SIPP Value = £51,684
Contributions in period = £4,200 (14 months @ £300)
Dividends in period = £1,237.65
Growth in period = £8,970.59
Value as at 1st November 2013 = £66,092.26

From 1st November 2013 to 1st November 2014
Starting SIPP Value = £66,092.26
Contributions in period = £3,600 (12 months @ £300)
Dividends in period = £1,432.72
Growth in period = £4,485.48
Value as at 1st November 2014 = £75,610.46

From 1st November 2014 to 1st November 2015
Starting SIPP Value = £75,610.46
Contributions in period = £4,950 (9 months @ £300 plus 3 months @ £750)
Dividends in period = £2,397.88
Growth in period = £8,506.33
Value as at 1st November 2015 = £91,464.67

From 1st November 2015 to 1st November 2016
Starting SIPP Value = £91,464.67
Contributions in period = £9,000 (12 months @ £750)
Dividends in period = £3,231.93
Growth in period = £8,934.56
Value as at 1st November 2016 = £112,631.16

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