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DIY Pensions for a Limited Company?

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  • lumalist
    replied
    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!!!

    Leave a comment:


  • FarmerPalmer
    replied
    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.

    Leave a comment:


  • adubya
    replied
    Originally posted by Pegasus View Post
    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.

    Leave a comment:


  • Pegasus
    replied
    Originally posted by adubya View Post
    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.

    Leave a comment:


  • ctdctd
    replied
    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.

    Leave a comment:


  • RonBW
    replied
    Originally posted by Fred Bloggs View Post
    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.

    Leave a comment:


  • adubya
    replied
    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.

    Leave a comment:


  • dingdong
    replied
    .... 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.

    Leave a comment:


  • lukemg
    replied
    HL.co.uk (NOT the cheapest but defo the biggest)
    Setup a SIPP
    Make direct payment from Ltd Company (HL will help you with details) reduces tax etc.
    Suggest you consider Vanguard Lifestrategy 80 fund (v low cost, global diversified) - monthly payment, setup and forget.
    Might want to look at VWRL etf(global index fund from Vanguard too) instead/for half.

    KEEP MAKING THE PAYMENTS AND DONT SELL UNDER ANY CIRCUMSTANCES - this is the most important thing, almost all amateurs make poor decisions, NO-ONE can time the market.

    IT IS SIMPLE TO DO THIS but it's not easy to hold your nerve. The ONLY reason to use an IFA is to stop you making a stupid decision to sell and it will cost you thousands.

    How much to put in ? Half your age as percent of gross income i.e. contract rate.
    In 20 years or so you will never have to work again...

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by teapot418 View Post
    0.43% including admin and investment charges - where have you found cheaper?
    The answer is, it depends. If you have GBP 300k SIPP pot (fairly modest these days) then you are looking at more than GBP 100 per month in charges for the IPSE scheme.

    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?

    Leave a comment:

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