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Previously on "DIY Pensions for a Limited Company?"

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  • Fred Bloggs
    replied
    Originally posted by Maslins View Post

    For me it's all with Interactive Investor, and all then in one Vanguard diversified fund. I just wondered in the situation that either II or Vanguard went bust, would that mean only £85k of my SIPP would be protected? People regularly comment about not having business/personal savings >£85k with one bank, but don't see the same conversation around SIPPs/similar.
    Your holdings with Interactive Investor in a Vanguard fund are held in trust for your SIPP. I actually can't remember the name of the trustee company that holds the assets in the II SIPP, it changed a couple if years back. I am sure the information is there if you want to know. So, if II go bankrupt then all things bring equal as long as there's nothing untoward going on behind the scenes, your investment is still going to be there irrespective of what happens to II. Presumably, the administrator would appoint another retail investment platform to be the shop window in to your SIPP investments.

    Leave a comment:


  • malvolio
    replied
    The IPSE scheme is the cheapest. Those who think different need to look a little harder; we've had this argument before. It may not be the best for you of course.

    Just as an aside, don't use an IFA, use a Wealth Management company. Yes they still take fees - "no work for free" remember - in my case a shade under 1% pa from the fund, which is growing at a steady 6% a year, including across the recent crash on the market, and despite me having a monthly income from it.

    As always YMMV, as will everyone else's...

    Leave a comment:


  • Maslins
    replied
    Originally posted by Fred Bloggs View Post
    Since it's going to be a pretty hopeless SIPP with less than £85k in it, I think it's almost irrelevant in the great scheme of things. Use one of the big mainstream retail platforms, your SIPP investments are held in a segregated trustee account. So all things being equal people at the retail platform have no day to day access to your investments. Of course, something can always go very badly wrong but I see no real need to worry too much using for example Interactive Investor, AJ Bell or similar. (Famous last words).
    For me it's all with Interactive Investor, and all then in one Vanguard diversified fund. I just wondered in the situation that either II or Vanguard went bust, would that mean only £85k of my SIPP would be protected? People regularly comment about not having business/personal savings >£85k with one bank, but don't see the same conversation around SIPPs/similar.

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by Maslins View Post
    Assuming you pick a global, diversified fund, is there any harm in having all eggs in one basket? By this I mean both:
    1) having all money in one fund (not spread across several different funds with different providers, like some in a Vanguard one, some in a Blackrock one)?
    ...and also
    2) having all money via one platform (not spread across different services, eg some with Interactive Investor, some with Hargreaves Lansdown)?

    I wasn't sure to what extent the £85k FSCS thing is relevant here? Whilst the majority of people won't have >£85k sitting in a bank account, many will have more than that sitting in a SIPP. A bit of Googling lead to lots of long pages with long words
    Since it's going to be a pretty hopeless SIPP with less than £85k in it, I think it's almost irrelevant in the great scheme of things. Use one of the big mainstream retail platforms, your SIPP investments are held in a segregated trustee account. So all things being equal people at the retail platform have no day to day access to your investments. Of course, something can always go very badly wrong but I see no real need to worry too much using for example Interactive Investor, AJ Bell or similar. (Famous last words).

    Leave a comment:


  • Maslins
    replied
    Assuming you pick a global, diversified fund, is there any harm in having all eggs in one basket? By this I mean both:
    1) having all money in one fund (not spread across several different funds with different providers, like some in a Vanguard one, some in a Blackrock one)?
    ...and also
    2) having all money via one platform (not spread across different services, eg some with Interactive Investor, some with Hargreaves Lansdown)?

    I wasn't sure to what extent the £85k FSCS thing is relevant here? Whilst the majority of people won't have >£85k sitting in a bank account, many will have more than that sitting in a SIPP. A bit of Googling lead to lots of long pages with long words

    Leave a comment:


  • Contreras
    replied
    Originally posted by Irishbar View Post
    Hi
    Can anyone please help me with an issue I have?
    I’m joining a new Umbrella company as they allow personal pension contributions via salary sacrifice. They support Hargreaves Lansdown and AJ Bell but can anyone help me through the process on setting one up with either of these two firms (recommendation appreciated) and providing the information to the umbrella company to allow them to contribute via salary sacrifice ??

    Many Thanks
    Apply for a SIPP account in your name. You will get an account no. Make sure you can log in to it and you are happy with what you see. Give the account number to your umbrella and instruct them on the salary sacrifice. The umbrella should make contribution(s) direct to your SIPP based on your instruction.

    Now you have cash sitting in your SIPP account ready to invest using the platform to buy/sell and/or set up regular investments, be that shares, ETFs, funds, etc.*

    Simples? yes. But..

    * You really ought to have a very good idea about your investment plan to start with!

    As to Hargreaves Lansdown vs. AJ Youinvest - The fee structures differ and which one is lower cost for you will depend on the investments (see above). I have accounts with both as well as elsewhere. The HL platform is slickest of the bunch, imho, and to me this is more important than saving a few tens of pounds on fees. However I suggest you phone them both and run through any questions you have as this in itself may point you one way or another.

    The contributions might be one-off/ad-hoc/or monthly, depends what your umbrella will "support". Find out, so you know. Ask if they really are restricted to just those two providers. Also consider your plans for the account once you are done with this umbrella.
    Last edited by Contreras; 21 January 2021, 22:56.

    Leave a comment:


  • Irishbar
    replied
    SIPP with new Umbrella Company

    Hi
    Can anyone please help me with an issue I have?
    I’m joining a new Umbrella company as they allow personal pension contributions via salary sacrifice. They support Hargreaves Lansdown and AJ Bell but can anyone help me through the process on setting one up with either of these two firms (recommendation appreciated) and providing the information to the umbrella company to allow them to contribute via salary sacrifice ??

    Many Thanks

    Leave a comment:


  • Flashback
    replied
    Originally posted by Fred Bloggs View Post
    I have done this with all those providers. I advise against Close Bros now. I used to recommend them but as time went on I found their systems so Flintstone-like that I have moved family portfolios from them to AJ Bell. My own experience is that the act of making contributions from Ltd Co to all those platforms is pretty pain free. Just follow the system to the letter. Note that you must follow the format exactly as requested for electronic transfers in, or the money can get lost within the platform's bank account. It can take a couple of weeks to unravel it if that happens. Otherwise, if everything is correct it takes about three days typically from the platform getting the money until it becomes investable as cash in your account. HTH
    Ah, I was referring more to opening the SIPP account in the first place (as opposed to making the investments). Happy to report that dropping them a secure message resulted in the account being active and ready to invest in 2 business days rather than the quoted 7-10 business days. Quite happy with Vanguard so far.

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by Flashback View Post
    The other thing that may be useful to note is that timing is everything, especially when opening a SIPP.

    Would be good to get data points on times here, for example Vanguard is roughly 2 weeks as they do the company validation etc. because you're going to be paying in company contributions.

    How about CB? II? AJBell? HL?
    I have done this with all those providers. I advise against Close Bros now. I used to recommend them but as time went on I found their systems so Flintstone-like that I have moved family portfolios from them to AJ Bell. My own experience is that the act of making contributions from Ltd Co to all those platforms is pretty pain free. Just follow the system to the letter. Note that you must follow the format exactly as requested for electronic transfers in, or the money can get lost within the platform's bank account. It can take a couple of weeks to unravel it if that happens. Otherwise, if everything is correct it takes about three days typically from the platform getting the money until it becomes investable as cash in your account. HTH

    Leave a comment:


  • Flashback
    replied
    The other thing that may be useful to note is that timing is everything, especially when opening a SIPP.

    Would be good to get data points on times here, for example Vanguard is roughly 2 weeks as they do the company validation etc. because you're going to be paying in company contributions.

    How about CB? II? AJBell? HL?

    Leave a comment:


  • Fred Bloggs
    replied
    Interactive Investor reduce SIPP fee.

    Old farts like me will be pleased to know that II SIPP have dropped their drawdown fees. Previously, you paid £10 a month for the SIPP account and another £10 per month drawdown fee, even if you had zero £ drawdown. So, effectively, running a SIPP in drawdown at II effectively halves in monthly cost from October 1st. Thanks II. Very much appreciated.

    Leave a comment:


  • Contreras
    replied
    Originally posted by Orangecat View Post
    I have old private pension from my ex employers. Can my Ltd company directly contribute to them or do I have to open up a new SIPP for my ltd company to contribute to for the tax etc?
    Technically - yes, if the schemes will allow it. Practically - try not to let the tax tail wag the dog, think carefully whether those old schemes are worth it.

    Originally posted by Fred Bloggs View Post
    Only the companies holding those pots of money can answer your questions. A very good strategy to consider would be to open a new pension (SIPP) and move those various pots into it. Many folks do that, putting everything in one place makes it far easier to manage. There is no problem contributing monthly or and hoc lump sums. But you must tell the pension platform they are company contributions. That bit is essential. I recommend you look at AJ Bell for smaller pots (0.25% fee) or Interactive Investor for larger pots, flat rate fee independent of pot size. HTH.
    Good advice ^. Except personally I prefer not to have ALL eggs in one basket.

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by Orangecat View Post
    Hi there,

    I have a silly question: I have old private pension from my ex employers. Can my Ltd company directly contribute to them or do I have to open up a new SIPP for my ltd company to contribute to for the tax etc?

    I have 3 old pension funds which I didn't contribute since 2016, one of them, L&G said they can accept new employer contribution..

    Separately, can the ltd do one lump sum contribution or it need to be every month?

    I am reasonably clear on the personal contribution rules, not sure about ltd contribution as new to this part.

    Thanks a lot.
    Only the companies holding those pots of money can answer your questions. A very good strategy to consider would be to open a new pension (SIPP) and move those various pots into it. Many folks do that, putting everything in one place makes it far easier to manage. There is no problem contributing monthly or and hoc lump sums. But you must tell the pension platform they are company contributions. That bit is essential. I recommend you look at AJ Bell for smaller pots (0.25% fee) or Interactive Investor for larger pots, flat rate fee independent of pot size. HTH.

    Leave a comment:


  • Orangecat
    replied
    ltd SIPP

    Hi there,

    I have a silly question: I have old private pension from my ex employers. Can my Ltd company directly contribute to them or do I have to open up a new SIPP for my ltd company to contribute to for the tax etc?

    I have 3 old pension funds which I didn't contribute since 2016, one of them, L&G said they can accept new employer contribution..

    Separately, can the ltd do one lump sum contribution or it need to be every month?

    I am reasonably clear on the personal contribution rules, not sure about ltd contribution as new to this part.

    Thanks a lot.
    Last edited by Orangecat; 31 July 2020, 21:20.

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by cwah View Post
    My understanding is that although you won't pay corporation tax, you still have to pay additional income tax because its above the £40k threshold
    Provided you were a member of a pension plan (any pension plan) in the previous year and provided you made less than £30k contribution to it, then carry forward applies. As in £40k for the present year and £10k carried forward from the previous year. By way of illustration for two years running I contributed £80k into my SIPP using carry forward rules (£160k total). HTH.

    Leave a comment:

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