Reply to: SIPP - Pension Plans

[richy]

Yes. You can choose to just store it as cash while you get around to deciding the fund. Of course, not sure what it is but interest rate is crap.

However, thats what I'm doing. Got 5-6 to transfer in so when they're all sorted then I can pick my funds. (Or at least get some ideas in the meantime).

Sounds like a good plan. I've 4-6 weeks to mull it over now!

[richy]

They use to have such a plan before the recession kicked in. I believe the account was held with the Bank of Scotland arm (as it was then) of HBOS / Halifax. However, because of the current interest rates of 0.5%, not many providers can offer anything of any substance any more to Hargreaves Lansdown.

Also, with your funds investments, you are not constrained to chosing just one fund, you can split your funds to many fund providers within the HL SIPP, as long as you have a minimum investment of 1000 GBP.

Hope that helps.

Thanks. This makes sense. Thank you others for the replies in this thread as well. I gave HL a ring, and all sounds fine. Just got to wait for my existing pension to come across in next 4-6 weeks now ;-)

[psychocandy]

Hi all

Just moving my existing pension to HL Vantage SIPP. My question is, I must choose a fund, but it takes 4-6 weeks to do the transfer... so does anyone know if there is a simple "savings cash rate" that I could select? I would be happy to get 2% interest on it.. while I work out what fund I want to go for in 6 weeks time.

cheers, rich

Yes. You can choose to just store it as cash while you get around to deciding the fund. Of course, not sure what it is but interest rate is crap.

However, thats what I'm doing. Got 5-6 to transfer in so when they're all sorted then I can pick my funds. (Or at least get some ideas in the meantime).

[DonkeyRhubarb]

so does anyone know if there is a simple "savings cash rate" that I could select?

I would talk to HL. You can hold cash in their SIPP so there should be a way of transferring in as cash rather than having to select a fund.

Can I hold cash within the Vantage SIPP and earn interest? | Hargreaves Lansdown

An alternative would be to stick it in a Money Market fund.

Search over 2,000 funds | Access fund fact sheets | Browse prices, charts, research, charges & discounts | Hargreaves Lansdown

[pmeswani]

Hi all

Just moving my existing pension to HL Vantage SIPP. My question is, I must choose a fund, but it takes 4-6 weeks to do the transfer... so does anyone know if there is a simple "savings cash rate" that I could select? I would be happy to get 2% interest on it.. while I work out what fund I want to go for in 6 weeks time.

cheers, rich

They use to have such a plan before the recession kicked in. I believe the account was held with the Bank of Scotland arm (as it was then) of HBOS / Halifax. However, because of the current interest rates of 0.5%, not many providers can offer anything of any substance any more to Hargreaves Lansdown.

Also, with your funds investments, you are not constrained to chosing just one fund, you can split your funds to many fund providers within the HL SIPP, as long as you have a minimum investment of 1000 GBP.

Hope that helps.

[MarillionFan]

A SIPP should be just one part of a healthy selection of 'retirement plans'

DYOR.

[richy]

Hi all

Just moving my existing pension to HL Vantage SIPP. My question is, I must choose a fund, but it takes 4-6 weeks to do the transfer... so does anyone know if there is a simple "savings cash rate" that I could select? I would be happy to get 2% interest on it.. while I work out what fund I want to go for in 6 weeks time.

cheers, rich

[DonkeyRhubarb]

The returns from the market over long periods of time are largely as a result of dividend income.

WHS.

Even though the FTSE is at the same level as 10 years ago, a tracker would have paid out a fair whack in divis.

This is why a lot of protected products are a con because they don't factor in divis.

[Fred Bloggs]

Personally think that is bad way to invest. Everyone else that doesn't have a clue will jump in to the speeding lane at the same time so fouling it up to a stop, look around for the next one that is speeding ahead and run like sheep to that one. Hardly a smart method.

That's why long term IMHO, (like in a SIPP) it pays to invest for reinvested income first and growth second. The returns from the market over long periods of time are largely as a result of dividend income.

[PAH]

If they're taking even 1% a year, over 25-30 years that's still a massive cut overall.

Got to be better options than giving away 30% of your final pension pot to a bunch of gamblers. They still take their fee even if they've made an overall loss on your investment in the previous year. Nice scam but typical of the finance sector.

[Lewis]

There are some advantages to a stakeholder pension. Max charges of 1% and free to switch funds. On HL most of the non-trakers are 1.5% or above and some have costs associated with switching. Also I noticed some are not protected against the fund going belly up, whereas (I would guess) stakeholders are fully protected.

[northernladuk]

Well... perhaps. Assuming FTSE develops, it's not moved in 10 years.

My analogy: If you are on a 5 lane motorway, and some lanes are slow, do you switch to the empty lane racing ahead? Yup. And then when they reach max speed, do you switch lane again? Yes. Investing is like this, make the gain, and then switch to another bargain price fund/index. This is how I've gained >20% in the last 2 months ;-)

Personally think that is bad way to invest. Everyone else that doesn't have a clue will jump in to the speeding lane at the same time so fouling it up to a stop, look around for the next one that is speeding ahead and run like sheep to that one. Hardly a smart method.

[richy]

Keep it simple. Have a read of this:

http://investisseurautonome.info/PDF...portfolios.pdf

You probably wouldn't go gar wrong by sticking 50% in the FTSE Allshare and 50% in government bonds (gilts).

Well... perhaps. Assuming FTSE develops, it's not moved in 10 years.

My analogy: If you are on a 5 lane motorway, and some lanes are slow, do you switch to the empty lane racing ahead? Yup. And then when they reach max speed, do you switch lane again? Yes. Investing is like this, make the gain, and then switch to another bargain price fund/index. This is how I've gained >20% in the last 2 months ;-)

[DonkeyRhubarb]

I understand no investment is 100% safe, so any recommendations on low-medium risk investments would be well appreciated.

Keep it simple. Have a read of this:

http://investisseurautonome.info/PDF...portfolios.pdf

You probably wouldn't go gar wrong by sticking 50% in the FTSE Allshare and 50% in government bonds (gilts).

[PAH]

Are pensions protected against these types of company going out of business?

If not then does it make more sense to have several pension investments via different companies rather than one SIPP with one company? Is it possible to have multiple SIPPs?