DIY Pensions for a Limited Company?

[lumalist]

Hello,

This is my first post - so be kind please!!!

Has anyone here used an online pension manager, like Nutmeg, for a private pension? By this I mean contributing funds straight from a ltd company tax free?

I've met two Independent Financial Advisors who manage pensions for ltd companies, but I'm not sure the fees are worth it - these guys are only links to funds managed elsewhere.

Has anyone gone it alone pension wise and hooked up with something themselves rather than using a IFA to do the admin and take a cut?

Tried to ask my accountant about the logistics and got a vague-non response...possibly because he's hand in hand with one of the advisors

[SueEllen]

SIPP

If you search this forum through Google you will find lots of threads on SIPPs and the providers of them.

If you don't want to work out which funds are best use tracker funds.

[teapot418]

WSS. A SIPP is the way to go.

I'm with HL - lots of evidence to say they're not the cheapest, but it works for me.

If you're after the lowest charges and are an IPSE member, have a look at their scheme too.

[Fred Bloggs]

Hello,

This is my first post - so be kind please!!!

Has anyone here used an online pension manager, like Nutmeg, for a private pension? By this I mean contributing funds straight from a ltd company tax free?

I've met two Independent Financial Advisors who manage pensions for ltd companies, but I'm not sure the fees are worth it - these guys are only links to funds managed elsewhere.

Has anyone gone it alone pension wise and hooked up with something themselves rather than using a IFA to do the admin and take a cut?

Tried to ask my accountant about the logistics and got a vague-non response...possibly because he's hand in hand with one of the advisors

It depends what you want really. Firstly, the principle of making company contributions is the correct way to go.

Most here, from what I have seen, go the SIPP route. Typically with a fund supermarket or platform as they are known. With this you make regular or lump sum contributions and you typically invest in funds or shares. You have complete freedom to pick and choose and you make your own choices yourself. Using a fund supermarket there is a wide range of fees and charges and is a subject on it's own. Platforms can be low or middling high cost and some charge flat fees while others charge a % fee. In addition, there are management fees taken from within the fund(s). This varies a lot from cheap trackers upwards to expensive but esoteric funds. Also, platforms have their recommended portfolios for people to invest in if they need a bit of guidance or lack confidence in choosing their own investments.

An IFA will set up any kind of pension you want, including a SIPP and they will charge you for every step of the way including ongoing annual fees. Usually the IFA puts your investments where he thinks is best for you. Myself, I do not like IFA's and will not recommend them, mainly on the grounds of cost but also from past (bad) experience. Costs are typically high to very high with the IFA choice. Some people have an IFA they swear by, but it's fairly unusual, IME.

Nutmeg (and similar) is a little bit in between. They offer standardised portfolios to invest in based on what you agree is your attitude to risk. Personally, I think Nutmeg overlaps with the other providers who also offer standardised portfolios. I guess they have their place but would not be my choice of provider. Fees are middling high to high for this option.

DYOR, is my advice and when it is clearer what you want we can help again. The above is NOT advice BTW!

[Fred Bloggs]

WSS. A SIPP is the way to go.

I'm with HL - lots of evidence to say they're not the cheapest, but it works for me.

If you're after the lowest charges and are an IPSE member, have a look at their scheme too.

FWIW - The IPSE scheme is certainly NOT a cheap option. You need to DYOR on this.

[adubya]

SIPP + passive investing IMO. Check out Monevator — Make more money, invest profitably, retire early for passive investing talk + a good table comparing SIPP providers.

You can contribute up to £40k/year* from your Ltd directly into a SIPP tax free.




* more if you have unused pension contributions from the previous 3 years.

[teapot418]

FWIW - The IPSE scheme is certainly NOT a cheap option. You need to DYOR on this.

0.43% including admin and investment charges - where have you found cheaper?

[Fred Bloggs]

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?

[lukemg]

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...

[dingdong]

.... 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.