Starting a new SIPP, with a pension transfer Starting a new SIPP, with a pension transfer - Page 2
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  1. #11

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    Quote Originally Posted by mike mac View Post
    Interesting videos, thanks for the link.

    I think this approach would suit me, I'm looking for long term investments for retirement, not short term.

    I'll do more research on the best platforms to use, and also need to check the current market situation still aligns with Lars's strategy.

    Out of interest, is anyone on here doing the same with government bonds and world index tracker?
    I tend to use index tracker funds for the long term, but doesn't have to be a world tracker... I tend to go for US equity trackers, more volatile, better returns! But better for a period of at least 10 years.

    Getting closer to the retirement age you might want to start shifting for less volatile/risky funds.
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  2. #12

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    Ok, after much research I'm going to do the following :-

    1. Open a SIPP (with a cheap rate provider)
    2. Transfer current pension into SIPP
    3. Start with 70/30 spread of money to bonds (70) and an index tracker (30)
    4. Start transferring monthly from my limited company.

    Questions :-
    My current pension is £50k, so will that break the £40k limit I read about?
    How do HMRC contribute into the SIPP?
    I pay myself mainly dividends, will I need to increase my salary to be able to pay in monthly amounts (say £500 a month to start)?

    Thanks in advance...

  3. #13

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    Quote Originally Posted by mike mac View Post
    Ok, after much research I'm going to do the following :-

    1. Open a SIPP (with a cheap rate provider)
    2. Transfer current pension into SIPP
    3. Start with 70/30 spread of money to bonds (70) and an index tracker (30)
    4. Start transferring monthly from my limited company.

    Questions :-
    My current pension is £50k, so will that break the £40k limit I read about?
    How do HMRC contribute into the SIPP?
    I pay myself mainly dividends, will I need to increase my salary to be able to pay in monthly amounts (say £500 a month to start)?

    Thanks in advance...
    1) 50k is a transfer so doesn't effect the yearly limit
    2) Depends, are you or is your company paying into the SIPP. If it's you the pension provider will reclaim allowance on your behalf, if your company HMRC doesn't contribute but you save corp tax on the contributions
    3) Best bet is to pay direct from the company, you don't get the allowance back from HMRC but you save on corp tax and dividend/income/ni
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

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  4. #14

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    Quote Originally Posted by SimonMac View Post
    1) 50k is a transfer so doesn't effect the yearly limit
    2) Depends, are you or is your company paying into the SIPP. If it's you the pension provider will reclaim allowance on your behalf, if your company HMRC doesn't contribute but you save corp tax on the contributions
    3) Best bet is to pay direct from the company, you don't get the allowance back from HMRC but you save on corp tax and dividend/income/ni
    That's great thanks for that.

    I've just got off the phone with Fidelity, and they can provide me with the SIPP, and it won't cost anything to transfer over my £50k pension into it. They charge 0.35%, and there are no charges for dealing with the investment funds or an index tracker.

    Seems like a good rate to me?

    Are there any other fees he may not have mentioned?

  5. #15

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    Quote Originally Posted by mike mac View Post
    That's great thanks for that.

    I've just got off the phone with Fidelity, and they can provide me with the SIPP, and it won't cost anything to transfer over my £50k pension into it. They charge 0.35%, and there are no charges for dealing with the investment funds or an index tracker.

    Seems like a good rate to me?

    Are there any other fees he may not have mentioned?
    Try here?

    SIPP Self-Invested Personal Pension | Easy to manage online | Fidelity
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  6. #16

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    Quote Originally Posted by wattaj View Post
    Interactive Investor is a cheaper platform for increasing pension values.

    Also, please do read/view the Lars Kroijer book/videos before you start to throw your money around.
    Quote Originally Posted by mike mac View Post
    That's great thanks for that.

    I've just got off the phone with Fidelity, and they can provide me with the SIPP, and it won't cost anything to transfer over my £50k pension into it. They charge 0.35%, and there are no charges for dealing with the investment funds or an index tracker.

    Seems like a good rate to me?

    Are there any other fees he may not have mentioned?
    As your pension pot increases, so will the value of the fees that you are charged.

    A monthly fixed-fee would work out cheaper in the long run.

    Please do the maths yourself so that you can see how this effects that amount of money that you will be storing away.

    All funds will have an annual, on-going management charge.
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  7. #17

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    Quote Originally Posted by mike mac View Post
    That's great thanks for that.

    I've just got off the phone with Fidelity, and they can provide me with the SIPP, and it won't cost anything to transfer over my £50k pension into it. They charge 0.35%, and there are no charges for dealing with the investment funds or an index tracker.

    Seems like a good rate to me?

    Are there any other fees he may not have mentioned?
    I was eyeing these lot up as well and they seem to compare favourably on this page.

    Check out the fees to find your Sipp platform | Moneywise

    There is a table showing drawdown fees which you might have missed though. Still pretty favourable. HL's fees for high end investors is eye watering.. but at those levels of money I guess not. Still looks poor against the rest.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  8. #18

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    Quote Originally Posted by mike mac View Post

    Are there any other fees he may not have mentioned?
    Check here too:

    Compare the UK’s cheapest online brokers

    I have one SIPP with Iweb and one with HL. HL are one of the more expensive platforms to hold funds. If however, you hold individual shares, ETFs or investment trusts then their annual fees are capped at £200 which is quite competitive.

  9. #19

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    Great, staying within Fidelity will be less hassle so I think I'll stick with them to start with. Their customer service has been 1st rate.

    It's quite scary and exciting going into investment. But I do feel in my situation I'd be better off in the long run, and hopefully get to an early retirement!

    This forum has been invaluable so thanks guys

  10. #20

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    Quote Originally Posted by wattaj View Post
    As your pension pot increases, so will the value of the fees that you are charged.

    A monthly fixed-fee would work out cheaper in the long run.

    Please do the maths yourself so that you can see how this effects that amount of money that you will be storing away.

    All funds will have an annual, on-going management charge.
    I should really offer an example...

    Pension pot: £80,000
    Platform charge: 0.35
    Imaginary fund OCF/TER: 0.45
    Cost over 12 months: £640

    Pension pot: £80,000
    Platform charge: £24 pcm
    Imaginary fund OCF/TER: 0.45
    Cost over 12 months: £648

    Usual caveats and excludes dealing charges.

    Corrections welcome.
    ---

    Former member of IPSE.

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