Annual growth rate is 8.59%
Cumulative growth rate since August 2012 is 12.905%
It was a tricky year for the SIPP and I'm glad that I came out of it ahead, especially when the FTSE100 is down over 14% in the past 12 months (from 7542 to 6460), and the All-Share index is down over 12.40% (4196 to 3674).
The Target for 31st December 2021 is £300,000 (£299,803 to be exact) and that's based on maintaining growth at 12.905% for the next 12 months.
The graph below (screenshot from LSE where I manage my portfolio) shows the volatility of the SIPP over the last year. You won't believe this, but after reading about Covid (then called Corona) in The Guardian on 16th January 2020, I told a close friend that Armageddon was coming! Over the next few weeks I sold-off 40% of my portfolio into cash (see value hit £125k on 1st March).
My close friend then convinced me that holding cash was the wrong thing to do, and he persuaded me to buy back in to the market (see value up to £180k in early March).
I then watched my SIPP value fall like a stone.
Thankfully, I didn't continue to listen to my friend and (in the period late-March to early-April) I restructured my Portfolio and took a decision to focus on internet-based companies as I anticipated those recovering quicker than traditional "bricks & mortar" companies. Thankfully, I was right.
The lesson in this?
Keep your own company!
If you make a financial decision, don't bother telling anyone for confirmation - if they have missed the opportunity, they will only try and tell you to reverse it to level-up the playing field.
People do not like to feel as if they have missed-out.
I made the same mistake with Bitcoin in 2016.
I bought £20,000 at US$2,500 and was convinced to sell when the BTC price was around US$3,800 as Bitcoin was a "fad".
If I'd followed my own instinct back in March, I'd probably have a SIPP of more than £300,000 now.
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