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Hargreaves Sipp
nottingham13
Posts: 128 Forumite
Just a quick question reagrding their SIPP, I know that the minimum one off contribution is £800. Is it possible to put it in their cash account and then spread it round say 4 funds?
Or do you have to put a minimum of £800 into one fund?
Thanks
Or do you have to put a minimum of £800 into one fund?
Thanks
0
Comments
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Typically their funds have a lower investment limit of about £500. You can get around it by investing in a low-risk fully-discounted fund then doing a "sell switch" transaction to move smaller chunks to other funds. It takes a bit longer than just putting the cash in directly, but it works quite nicely.nottingham13 wrote: »Just a quick question reagrding their SIPP, I know that the minimum one off contribution is £800. Is it possible to put it in their cash account and then spread it round say 4 funds?
Or do you have to put a minimum of £800 into one fund?
Thanks
Alternatively you can set up a monthly contribution into the pension. usually you can go as low as £50 gross (i.e. £40 net) per fund.
With £800 to invest, are you sure a SIPP is right for you? A stakeholder would be cheaper. What funds are you looking to invest in?I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
Thanks for your help.
The reason why I was looking at HL sipp is because of its flexibility. ie. you can invest in which ever funds you like. I appreciate it is more expensive, but with a stakeholder you are limited to the funds you can invest in. Therefore I believe the extra cost is worth it.
Just to be clear then:
Can I invest £50 a month into the cash account and then transfer this money into a fund. EG, I have built up £600 in the cash account and I only want to switch £300 into a fund? Or do I have to invest a minimum of £500?
Or do I have to invest into a fund first, you said a minimum of £500 and then I can switch say £300 into another fund?
Thanks for your help.0 -
nottingham13 wrote: »The reason why I was looking at HL sipp is because of its flexibility. ie. you can invest in which ever funds you like.
The main reason for choosing a SIPP is to be able to invest in areas other than funds, i.e. shares, property. If you are just using funds the SIPP is often the most expensive option.I appreciate it is more expensive, but with a stakeholder you are limited to the funds you can invest in. Therefore I believe the extra cost is worth it.
If the stakeholder does not have the funds that you want, a Personal Pension ( some contain more than 300 funds ) will often do so. First of all you have to know what funds you want and then see where you can get them.0
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