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Starting a new SIPP, with a pension transfer

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    #11
    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.
    "The boy who cried Sheep"

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      #12
      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...

      Comment


        #13
        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
        Originally posted by Stevie Wonder Boy
        I can't see any way to do it can you please advise?

        I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

        Comment


          #14
          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?

          Comment


            #15
            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

            Comment


              #16
              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.
              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.
              ---

              Former member of IPSE.


              ---
              Many a mickle makes a muckle.

              ---

              Comment


                #17
                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!!!!

                Comment


                  #18
                  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.

                  Comment


                    #19
                    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

                    Comment


                      #20
                      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.


                      ---
                      Many a mickle makes a muckle.

                      ---

                      Comment

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