DIY Pensions Advice for a Limited Company!

[adubya]

Check the monevator.com tables and do the sums on how much you think you'll end up with in your SIPP and how much that will cost. HL may turn out to be expensive for a large SIPP.

I went for a flat fee broker, iWeb.

[RonBW]

Question - If you hold one of the high faluting, high cost niche funds with costs of say 1.5% a year within the fund (and that is not that un heard of by any means) what is the IPSE scheme platform charge? The platform charge has to be IN ADDITION to the fund internal charges, yes?

From what I can see looking at the funds available to invest in, there aren't any that would charge 1.5%. The default fund is the Mercer Target Annuity Fund, and looking at the details I don't think there are any others that charge more than the default 0.25% fund management charge plus the 0.18% administration charge.

[ctdctd]

I used Interactive Investor SIPP - flat fee.
Mainly invested in Vanguard LifeStrategy Funds - invest and forget for the next 10 years is the plan.

Direct funding from MyCo bank - also have to send in a contributions form with each contribution.

[Pegasus]

Check the monevator.com tables and do the sums on how much you think you'll end up with in your SIPP and how much that will cost. HL may turn out to be expensive for a large SIPP.

I went for a flat fee broker, iWeb.

Hi Adubya,

How much time did your application with iWeb take?

Using the previous 3 years unused pension contributions - my understanding is that it is applicable only if you already had an existing sipp account? So, for someone like me, who is opening a pension account for the first time, I will only be able to use 40K for this year, right?

Thanks.

[adubya]

Hi Adubya,

How much time did your application with iWeb take?

Using the previous 3 years unused pension contributions - my understanding is that it is applicable only if you already had an existing sipp account? So, for someone like me, who is opening a pension account for the first time, I will only be able to use 40K for this year, right?

Thanks.

Took just a few days to open the SIPP, if you were thinking of opening one then I'd move sharpish as I imagine things get busy as tax year end approaches.

Re: unused contributions then yes, you're out of luck. Only applies if you were in a scheme for those previous years.

[FarmerPalmer]

I'm currently moving to an ii SIPP
If you don't want to look too much into funds, a Vanguard lifestyle or Blackrock trackers, but if you use trackers don't just keep it in the UK.
If you decide to use trackers then I'd split it 4 ways UK, US, EU, then split the last 1/4 2 ways into AP, JP.
This year I've decided to take a more active role, looking into managed funds, but it takes a bit of research, Money Observer magazine is a good place to start.

[lumalist]

Thank you thank you thank you all for the points here.

You've stopped me just in the nick of time from signing up with an IFA recommended for contractors... this would set me back £1500 in start up fee, plus 0.5% of the value of the investment up to £1500 a year, plus 1% to the fund manager... this is a lot I think for this?

I've done my research and the pension I was recommended by the IFA can be invested in through a SIPP, it seems the fees are smaller.

I think best thing for me is to do a hell of a lot more research and not to jump into something near company year end (very soon!). Pensions and investing are daunting prospects to those of us who have yet to venture into them, so thank you all for your advice!!!

[Fred Bloggs]

.... and then shift from HL to iii once you've got over 40k saved as once you have a significant pot you're better off with iii as they don't charge any percentage platform fees.

Correct.

[Fred Bloggs]

From what I can see looking at the funds available to invest in, there aren't any that would charge 1.5%. The default fund is the Mercer Target Annuity Fund, and looking at the details I don't think there are any others that charge more than the default 0.25% fund management charge plus the 0.18% administration charge.

Thanks for looking into it. So, the price to be paid for a lowish total fee take is that you are crippled for choice of funds? That's is not a trade off many would choose to accept. And you'll still pay the GBP 100 a month on a reasonably modest GBP 300k SIPP within the IPSE scheme, many contractors will fit that bill, I think.

Just for curiosity sake, what are the 1, 3, 5 and 10 year returns like from the Mercer Target Annuity Fund? Answered my self -

The fund has a very short track record actually.

1 year return is 9%. 6 month return is - minus 4.3%. 3 month return is 2.9%. The fund's very own benchmark made more than 20% in the last year. So, the IPSE scheme isn't exactly setting the investment world on fire, is it? Under-performing it's own benchmark by 50% in just one year.

[RonBW]

Thanks for looking into it. So, the price to be paid for a lowish total fee take is that you are crippled for choice of funds? That's is not a trade off many would choose to accept. And you'll still pay the GBP 100 a month on a reasonably modest GBP 300k SIPP within the IPSE scheme, many contractors will fit that bill, I think.

Well, SJP offer a highish total fee and the price to be paid for that is that you are crippled for choice of funds. You make the decision that is right for you.

I've spoken to three different IFAs who said that they couldn't come close to the IPSE offering. Clearly, you think differently, which is why it's important for everyone to look at their individual circumstances and work out what is best for them, rather than blindly taking advice from anonymous users on an internet forum