Originally posted by jamesbrown
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Pension. Please guide.
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Originally posted by adubya View PostVanguard are good but for larger holdings (£120K+) their %age based fee structure will cost more than a flat-fee provider. That's what's keeping me from using Vanguard currently.Comment
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Thanks for all replies. It’s really helpful. I was checking SIPP with fidelity. It showed that if I pay £40000, HMRC pays in £10000 (25%). It seems bit unrealistic to me that you get 25% just like that and on top of that you save tax (say 20%). So it is straight 45% return. Or may be I am wrong somewhere.
And secondly, is £40000 constrained by salary I get from my limited company? And this £40000 I pay to pension provider is paid by company for me or me as employee (for SIPP). At this moment I am not looking for which fund is better, but at rules and regulations so that my pension investment is not considered ineligible for tax savings.
Fidelity sent me this email for workplace investing pension
“Thank you for contacting the WI Service Centre. As discussed with myself, this scheme allows direct lump sum payments, known as Single Premiums.
For us to accept a Single Premium payment from a company, we require the following:
• A covering letter signed and dated by the member that includes three identifiers such as their full name, National Insurance number, date of birth, address, scheme name or seven-character Fidelity reference number
• The covering letter should also include the name of the company from which the payment is to be made
• A copy of the company's house registration or Certificate of Incorporation
• In addition, we need an original written statement from the company on headed paper confirming they’re gifting the money to the member and accept they’ll have no further claim on the money. This needs to be signed by the company’s authorised signatories”Last edited by sammy2020; 19 December 2020, 12:36.Comment
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Best comparison table I've found:
Best trading platforms and stock brokers
Most investors could do a lot worse than: Vanguard LifeStrategy funds turn passive investing catatonic
The average active manager underperforms the broader market after fees.
A wealth manager will normally add at least 1% on top of the fees of the underlying holdings. This is a significant drag on performance over time and one which in all likelihood will drop the overall performance below that achieved by a world index tracker.
The average profit margin for the investment management industry varies from 5 to 40% with an average of 14.7%. Their profit is your money.
What is the average profit margin range for a financial services company?
To pay for active management, you need to be damn sure you are getting "alpha". In my experience, it's very easy to think you are when you're actually not.Comment
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Originally posted by sammy2020 View PostThanks for all replies. It’s really helpful. I was checking SIPP with fidelity. It showed that if I pay £40000, HMRC pays in £10000 (25%). It seems bit unrealistic to me that you get 25% just like that and on top of that you save tax (say 20%). So it is straight 45% return. Or may be I am wrong somewhere.Comment
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9.5% decade to decade growth?
That’s bloody awful.
You sure you know where to invest?See You Next TuesdayComment
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Originally posted by jamesbrown View PostLast time I checked, it was capped at £375 pa., regardless of amount.Comment
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Originally posted by adubya View PostYes, but other providers have a flat fee half of that.Comment
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Originally posted by jamesbrown View PostIn any case, you need to look at fees in the round. I agree that you need to do this for the expected amount invested. But there is a reason that Vanguard routinely comes out top in industry comparisons of total fees. For example, outside of ETFs, there are no dealing charges whatsoever. TBF, they have driven the market down so that other platforms are eliminating a lot of their hidden fees too.Comment
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Originally posted by adubya View PostOh yes. All of my SIPP holdings are Vanguard funds, it just happens to be cheaper to hold them outside of the Vanguard SIPP for me.Comment
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