- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Pension advice
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Pension advice"
Collapse
-
Spread your investments between ISAs (max that out, it will be £20k pa from next year), a SIPP on a low fee fund (as mentioned Vanguard etc) and once you have saved some serious cash some BTLs.
-
I have read in a couple of reputable publications that the rule of thumb for investing is if your total investment pot is < £100k then SIPPS or self funding vehicles are sufficient. However if > £100k then professional advice should be sort through a reliable IFA.
Leave a comment:
-
Originally posted by gables View PostWhat's the reason for not making a regular payment? I'd prefer to have say minimum go out every month with an irregular 'top up' when funds allow.
Leave a comment:
-
Originally posted by gables View PostWhat's the reason for not making a regular payment? I'd prefer to have say minimum go out every month with an irregular 'top up' when funds allow.IR35 Avoider
Leave a comment:
-
Originally posted by IR35 Avoider View PostYou can open a SIPP account and make employer "single contributions" of whatever amount you decide is appropriate. I used to make such contributions quarterly, but you can make them as often or as infrequently as you like. You don't have to (and as a contractor probably shouldn't) sign up to making any sort of regular payment.
Pay a 2% fee means that at best a third of your real investment returns will go into some else's pocket instead of your own. It's likely to be more than that, if they choose anything but the riskiest/highest returning assets for you, which they almost certainly will.
Similarly, 1% is an insane amount to pay for a FTSE 250 tracker. To put that in context, Vanguard UK offer a FTSE 250 tracker ETF for 0.1%. Have a look at Vanguards funds to get an idea of what reasonable charges look like.
https://www.vanguard.co.uk/uk/portal...s/all-products
I have a couple of "expensive" funds. I regard 0.3% as expensive. I generally wouldn't consider paying more than that on any long-term investment.
Leave a comment:
-
Open a SIPP with HL or III (other providers are available. HL cheapest for low value pots, III cheaper for higher value pots)
Send irregular payments to them by cheque along with some "company contribution" paperwork
Split the contributions into a Fundsmith Equity and Vanguard Lifestrategy 80% fund.
It is that easy. A damn sight cheaper than the tulipe your IFA is recommending, and probably better gains.
(Disclaimer: I'm not an IFA. Funds go down as well as up. This is a suggestion, not a recommendation. Do your own research before committing your money.)
Leave a comment:
-
You can open a SIPP account and make employer "single contributions" of whatever amount you decide is appropriate. I used to make such contributions quarterly, but you can make them as often or as infrequently as you like. You don't have to (and as a contractor probably shouldn't) sign up to making any sort of regular payment.
Pay a 2% fee means that at best a third of your real investment returns will go into some else's pocket instead of your own. It's likely to be more than that, if they choose anything but the riskiest/highest returning assets for you, which they almost certainly will.
Similarly, 1% is an insane amount to pay for a FTSE 250 tracker. To put that in context, Vanguard UK offer a FTSE 250 tracker ETF for 0.1%. Have a look at Vanguards funds to get an idea of what reasonable charges look like.
https://www.vanguard.co.uk/uk/portal...s/all-products
I have a couple of "expensive" funds. I regard 0.3% as expensive. I generally wouldn't consider paying more than that on any long-term investment.
Leave a comment:
-
Check the Welcome/FAQ section. There is a thread in how to search the forums. There have been endless discussion about pensions and other options. Have a read through them and the. As Fred says come back with something a little more specific.
Leave a comment:
-
Originally posted by newbieITContractor2015 View PostHi,
I'm looking at starting a pension via my limited company as I can afford to do it at the moment, to save for the future and to reduce my tax burden. I'm currently looking at a managed pension service which takes a 1.5% - 2% annual cut vs using a non managed fund such as a FTSE 250 tracker which has around a 1% fee. What I'm after is something whereby I can vary the amount I pay in on a quarterly basis to reflect my circumstances as I'm contracting via my own Ltd company and therefore I don't have the guarantees you get with permanent work.
Any recommendations or alternatives worth exploring?
Thanks
Leave a comment:
-
Pension advice
Hi,
I'm looking at starting a pension via my limited company as I can afford to do it at the moment, to save for the future and to reduce my tax burden. I'm currently looking at a managed pension service which takes a 1.5% - 2% annual cut vs using a non managed fund such as a FTSE 250 tracker which has around a 1% fee. What I'm after is something whereby I can vary the amount I pay in on a quarterly basis to reflect my circumstances as I'm contracting via my own Ltd company and therefore I don't have the guarantees you get with permanent work.
Any recommendations or alternatives worth exploring?
ThanksTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Andrew Griffith MP says Tories would reform IR35 Oct 7 00:41
- New umbrella company JSL rules: a 2026 guide for contractors Oct 5 22:50
- Top 5 contractor compliance challenges, as 2025-26 nears Oct 3 08:53
- Joint and Several Liability ‘won’t retire HMRC's naughty list’ Oct 2 05:28
- What contractors can take from the Industria Umbrella Ltd case Sep 30 23:05
- Is ‘Open To Work’ on LinkedIn due an IR35 dropdown menu? Sep 30 05:57
- IR35: Control — updated for 2025-26 Sep 28 21:28
- Can a WhatsApp message really be a contract? Sep 25 20:17
- Can a WhatsApp message really be a contract? Sep 25 08:17
- ‘Subdued’ IT contractor jobs market took third tumble in a row in August Sep 25 08:07
Leave a comment: