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  1. #1

    Investment advice for a widow

    Approaching 76 I am thinking about what would be the best option for my SIPP when I am gone. My wife hasn’t a clue and unless I sort it out she would put it in the bank or worse still give it to a financial adviser to lose. I would appreciate some thoughts from contributors on the best way to provide some defence against inflation and provide a small top up for her.
    Over the years I have drawn as much cash out the SIPP as possible and bought physical gold bullion which is in a vault in Switzerland, well away for Corbyn’s grubby little hands. With whats still in the SIPP I am thinking of shares which pay a regular and progressive dividend and confining the portfolio to large and mid cap’s, FTSE 100 and 250 but I would be open to any ideas except bonds which I never have understood.

  2. #2
    Hi Edward, suggest large global ITs eg. F&C, Bankers, Scottish American.

  3. #3
    What is the investment goal of the pot of money in your SIPP?

    -Are there other source of income such as pension?

    -Is the money for the wife to spend or some for legacy?

    -Do you have more than enough (already won the game)?

    I personally favour a low cost index fund like Vanguard life strategy. You can dial up/down the equity portion based on your/her ability, willingness and need to take risk. An index fund has no manager risk and Vanguard has a strong culture of giving its investors a fair deal. She can just withdrawal a fixed percentage each year.

    Vanguard also has active funds (global, global income and global balanced) with low fees, 0.6%.

    There is always annuity for someone totally disinterested.

  4. #4
    From what you've written, the priority for your SIPP seems to be income and also something which can be left alone.

    Since there are some potential short/medium term risks with investing in the UK, you may want to be underweight UK focussed funds as they lack the flexibility to switch out if things go south.

    Although you mention gold, its not clear how much there is compared to your other investments, also presumably your wife would not be actively using that to rebalance your portfolio. So the gold will kind of protect against risk but mainly as a last resort.

    One approach might be to go for a range of investments providing global income

    For Investment Trusts, you may wish to look at Invesco Perpetual Global Equity Income or maybe Fidelity Global Dividend.

    In addition to that, it might be worth going for some more defensive investments, funds where the managers can switch out of equities when they think its sensible. Royal London Sustainable World Trust C Acc, MIGO, Baillie Gifford Cautious managed, RIT Capital partners IT, maybe Hawksmore Vanburgh.

    So something like this might work:
    50% Invesco Perpetual Global Equity Income
    25% Royal London Sustainable World Trust
    25% RIT Capital partners (or another defensive)

    The ITs mentioned by Keith are all worth a look too, check them out and look at yield and risk for each one.

    Stepping back a bit, maybe finding a financial advisor you trust would be worthwhile, just so your wife has someone she could go to for advice if needed.

  5. #5
    Having faced this dilemma recently I have advised my wife to put the lot into Vanguard Life Strategy 60% or the 80% if I go earlier than hoped :-)

    Circs were that my wife wanted something that was simple enough for her to leave alone. Income was not a concern as if needed units could be sold.


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