Whether to switch pension or not

[pr1]

Ok - I understand the outrage, huge vested interests and marketing budgets are directed at making you pay for active management and thanking them for the privilege, it's genius in a way..

BUT there IS a very simple solution to what you should do...

1. You save as much as possible, use ISA's (great tax benefits, instant access)and SIPP's (good way to get money out of company, tax benefits too)
2. Use an online broker (HL, III - see monevator.com for best choice for you, depends on amount you have)
3. Invest in globally diversified Index funds/ETF's.(see monevator.com for why). Consider using Vanguard Lifestrategy 80 as a one stop solution (global, 80%equity, 20% bonds, low cost, massive company)
4. NO MATTER WHAT THE MARKET DOES/WHAT THEY SAY ON THE NEWS YOU NEVER SELL AND NEVER STOP MAKING THE MONTHLY INVESTMENTS.
5. Stick enough in, let compounding/time do the heavy lifting and you retire a millionaire.

GLA

but remember not to die before you can spend/enjoy your money

[legal]

Great advice everyone. Thanks.

I am going to open account with II.

[lukemg]

but remember not to die before you can spend/enjoy your money

Yep - balance is needed, remember not to p**s it all away on s**t you don't need to impress people you don't care about, followed by either:
- Having to work way past when you can't stand it and becoming known as the miserable old t**t.
- Hit the career earnings decline/lack of opportunities with k'all to show for 20 years on the tools, that won't be a picnic either as you hit retirement.

By all means, buy experiences/travel and smell the roses on the way but for your own sake stash a bit too....

[The Canny Contractor]

Pensions and Fees

I agree with Lukemg re his strategy:

I went the Vanguard Lifestrategy 60/40 (bit more cautious) route for my SIPP, as I have a high growth fund in place already.
Vanguard let you go direct now, hence there is no middlemen fees. I'm with HL and hoping they will start reducing their annual management fees with this news.

The Vanguard fund charge is 0.22%.

There is ALSO a HL annual management fee in place for funds (unit trusts and OEICs) held within their platform, and this charge is applied across each account separately with no cap. For the first £250,000 of funds within each account, the charge is 0.45% per annum. On the value of funds between £250,000 and £1 million this is 0.25% per annum.

It's worth using one of these little compounding/ fees calculators to work out your net return over the long term. The fees soon stack up.

That's my number one rule too, never sell. Unless one of my dividend stocks has its dividend cut.

[Hobosapien]

...
Vanguard let you go direct now, hence there is no middlemen fees. I'm with HL and hoping they will start reducing their annual management fees with this news.

The Vanguard fund charge is 0.22%.

...

According to the example on their website (https://www.vanguardinvestor.co.uk/what-we-offer/fees) they also charge 0.15% account fee, so 0.37% overall, costing £74/year for a 20k investment.

That's for their ISA. So worth seeing how going direct stacks up on the fees front if only interested in investing in Vanguard LifeStrategy via ISA. Sounds like (according to elsewhere on their website) they'll also offer a direct SIPP from 2018 but don't yet.

Certainly food for thought guys, cheers.