IG SIPP Smart Portfolio Robo Advisor Experiment

I’m going to let a computer algorithm manage my SIPP (Self Invested Personal Pension) account.

Why I’m letting a robo-advisor manage my SIPP portfolio?

While I’m doing OK ish and been making 6-7% per annum since I started my SIPP account a few years ago, I find it’s expensive to to do the rebalancing and dividend re-investing manually.

Furthermore, it can be exhausting at times to manage multiple accounts.

I currently have a small trading account with Interactive Brokers for short term speculation. Below is the performance of my small trading account.

Recently, I have opened an ISA account with a commission free provider called FreeTrade.

In total, I’m managing 3 accounts: 1x IB Trading account, 1 x IB SIPP account and 1 x FreeTrade ISA account.

My plan is to close my IB trading account and move it into my ISA account.

After the consolidation, I’m only going to manage 1 account – FreeTrade ISA. The IB SIPP account will be moved to IG Smart Portfolio.

In this experiment, I’m transferring my Interactive Brokers SIPP portfolio to IG Smart Portfolio valued at £59,679 as of 17th July 2019.

I will be contributing around £3000 a month using my IT contracting company’s retained profit. I’m a 100% shareholder of this company.

I am unemployed at the moment. Fortunately, 6 years of contracting and hard-work allowed me to build a substantial buffer (retained profit) on my company accounts. I have excluded the retained profit from my net worth as it still belongs to my company. I’m redistributing the retained profit to the shareholder / employee (me) in the form pension contribution.

I’m using a growth scenario for this experiment. According to the projections, by July 2029 the portfolio’s projected value is £560K. Total fee including fund expense ratio is 0.75%.

10 year projections

  • Likely: £560K
  • Worst-Case: £400K
  • Best-Case: £800K
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