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DIY Pensions for a Limited Company?

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    Originally posted by Irishbar View Post
    Hi
    Can anyone please help me with an issue I have?
    I’m joining a new Umbrella company as they allow personal pension contributions via salary sacrifice. They support Hargreaves Lansdown and AJ Bell but can anyone help me through the process on setting one up with either of these two firms (recommendation appreciated) and providing the information to the umbrella company to allow them to contribute via salary sacrifice ??

    Many Thanks
    Apply for a SIPP account in your name. You will get an account no. Make sure you can log in to it and you are happy with what you see. Give the account number to your umbrella and instruct them on the salary sacrifice. The umbrella should make contribution(s) direct to your SIPP based on your instruction.

    Now you have cash sitting in your SIPP account ready to invest using the platform to buy/sell and/or set up regular investments, be that shares, ETFs, funds, etc.*

    Simples? yes. But..

    * You really ought to have a very good idea about your investment plan to start with!

    As to Hargreaves Lansdown vs. AJ Youinvest - The fee structures differ and which one is lower cost for you will depend on the investments (see above). I have accounts with both as well as elsewhere. The HL platform is slickest of the bunch, imho, and to me this is more important than saving a few tens of pounds on fees. However I suggest you phone them both and run through any questions you have as this in itself may point you one way or another.

    The contributions might be one-off/ad-hoc/or monthly, depends what your umbrella will "support". Find out, so you know. Ask if they really are restricted to just those two providers. Also consider your plans for the account once you are done with this umbrella.
    Last edited by Contreras; 21 January 2021, 22:56.

    Comment


      Assuming you pick a global, diversified fund, is there any harm in having all eggs in one basket? By this I mean both:
      1) having all money in one fund (not spread across several different funds with different providers, like some in a Vanguard one, some in a Blackrock one)?
      ...and also
      2) having all money via one platform (not spread across different services, eg some with Interactive Investor, some with Hargreaves Lansdown)?

      I wasn't sure to what extent the £85k FSCS thing is relevant here? Whilst the majority of people won't have >£85k sitting in a bank account, many will have more than that sitting in a SIPP. A bit of Googling lead to lots of long pages with long words

      Comment


        Originally posted by Maslins View Post
        Assuming you pick a global, diversified fund, is there any harm in having all eggs in one basket? By this I mean both:
        1) having all money in one fund (not spread across several different funds with different providers, like some in a Vanguard one, some in a Blackrock one)?
        ...and also
        2) having all money via one platform (not spread across different services, eg some with Interactive Investor, some with Hargreaves Lansdown)?

        I wasn't sure to what extent the £85k FSCS thing is relevant here? Whilst the majority of people won't have >£85k sitting in a bank account, many will have more than that sitting in a SIPP. A bit of Googling lead to lots of long pages with long words
        Since it's going to be a pretty hopeless SIPP with less than £85k in it, I think it's almost irrelevant in the great scheme of things. Use one of the big mainstream retail platforms, your SIPP investments are held in a segregated trustee account. So all things being equal people at the retail platform have no day to day access to your investments. Of course, something can always go very badly wrong but I see no real need to worry too much using for example Interactive Investor, AJ Bell or similar. (Famous last words).
        Public Service Posting by the BBC - Bloggs Bulls**t Corp.
        Officially CUK certified - Thick as f**k.

        Comment


          Originally posted by Fred Bloggs View Post
          Since it's going to be a pretty hopeless SIPP with less than £85k in it, I think it's almost irrelevant in the great scheme of things. Use one of the big mainstream retail platforms, your SIPP investments are held in a segregated trustee account. So all things being equal people at the retail platform have no day to day access to your investments. Of course, something can always go very badly wrong but I see no real need to worry too much using for example Interactive Investor, AJ Bell or similar. (Famous last words).
          For me it's all with Interactive Investor, and all then in one Vanguard diversified fund. I just wondered in the situation that either II or Vanguard went bust, would that mean only £85k of my SIPP would be protected? People regularly comment about not having business/personal savings >£85k with one bank, but don't see the same conversation around SIPPs/similar.

          Comment


            The IPSE scheme is the cheapest. Those who think different need to look a little harder; we've had this argument before. It may not be the best for you of course.

            Just as an aside, don't use an IFA, use a Wealth Management company. Yes they still take fees - "no work for free" remember - in my case a shade under 1% pa from the fund, which is growing at a steady 6% a year, including across the recent crash on the market, and despite me having a monthly income from it.

            As always YMMV, as will everyone else's...
            Blog? What blog...?

            Comment


              Originally posted by Maslins View Post

              For me it's all with Interactive Investor, and all then in one Vanguard diversified fund. I just wondered in the situation that either II or Vanguard went bust, would that mean only £85k of my SIPP would be protected? People regularly comment about not having business/personal savings >£85k with one bank, but don't see the same conversation around SIPPs/similar.
              Your holdings with Interactive Investor in a Vanguard fund are held in trust for your SIPP. I actually can't remember the name of the trustee company that holds the assets in the II SIPP, it changed a couple if years back. I am sure the information is there if you want to know. So, if II go bankrupt then all things bring equal as long as there's nothing untoward going on behind the scenes, your investment is still going to be there irrespective of what happens to II. Presumably, the administrator would appoint another retail investment platform to be the shop window in to your SIPP investments.
              Public Service Posting by the BBC - Bloggs Bulls**t Corp.
              Officially CUK certified - Thick as f**k.

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