I set myself an annual growth target (to improve my pension value by) of 20% per annum. I'm also making a £300 monthly contribution to the pension fund (not included in the growth target percentage). If contributions are maintained, and annual growth of 20% is achieved then, when I celebrate my 65th birthday on 8th November 2024, my fund will be worth £639,925.00.
Yes, it is a lofty target but one that I think is achievable.
To date, in the intervening period of about 12 months, my pension fund has grown to £63,072.84. In the period since starting the SIPP, I've made contributions of £3,600 (12 @ £300, the initial contribution made on 7th August). Therefore, the pension fund has seen growth of £7,788.84, or approximately 14.40% so I am short of my annual target growth.
I was hoping my pension fund would be at about....
£51,684.02 plus 20% = £62,020.82
£300 x 12 months =£3,600.00
£3,600 x (20% ÷ 2) = £360.00
Total = £65,980.82
So, I'm about £2,900 below my target for the 1st 12 months.
My Pension Fund is made up of the following holdings
(ASL) Aberforth Smaller Companies Trust - 638 shares
(AHT) Ashtead Group - 1050 shares
(AZEM) AZ Electronbic Materials Group - 1000 shares
(BARC) Barclays plc - 3000 shares
(HSBA) HSBC Holdings plc - 300 shares
(IMG) Imagination Technologies Group - 1500 shares
(IPF) International Personal Finance - 400 shares
(JMF) JPMorgan Mid Cap Investment Trust - 1250 shares
(MAB) Michells & Butlers plc - 1200 shares
(OPAY) Optimal Payments plc - 1730 shares
(WMH) William Hill plc - 750 shares
Cash = £9,706.65
I'm trying to post a pdf copy of todays statement, but Blogger won't allow this (needs to be a photo - but you won't be able to read a photo).
Today's share transaction was a purchase of 300 shares in HSBC Holdings (HSBA) at a cost of £7.28 per share (including overheads). The reason I've made the purchase is that profits are up, the outlook is positive and yet the share price has dipped by 5% on the publication of latest figures this morning. I've looked at the purchase price as a discount which should be quickly recovered.
Why am I writing this blog?
For over 3 years I have written a horse racing blog to be found at http://waywardlad.blogspot.com
When writing that blog, I quickly realised that by putting my thought down on paper (ie, the blog) that my focus became more rational and I was less likely to make reckless wagers. I became a better judge of risk and reward, which meant that my profits went up from my gambling investments. I am hoping that the same will happen with my stock-picking for my pension.
I'm also hoping that readers of the blog will contribute their own ideas and information with regards stock-picking and pension planning and that everyone will benefit.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments being undertaken when investing in a Pension (SIPP). This blog is not personal advice, but is a record of the authors own investments.