We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
What to do with 6k??
sarahpenny
Posts: 119 Forumite
Just typed a question and lost it!! Grrr!!
A very kind person has given me 6k to go towards a pension. I am 47 and have previously put 3k into Prudential about 15 years ago. Nothing since though. Am trying to understand SIPPS but my head is in a bit of a whirl. As I am not too clued up on these matters, would it be best to whack it into the Pru again?
Thanks for any suggestions.
A very kind person has given me 6k to go towards a pension. I am 47 and have previously put 3k into Prudential about 15 years ago. Nothing since though. Am trying to understand SIPPS but my head is in a bit of a whirl. As I am not too clued up on these matters, would it be best to whack it into the Pru again?
Thanks for any suggestions.
0
Comments
-
Am trying to understand SIPPS but my head is in a bit of a whirl.
Potentially the most expensive option and designed for experienced investors. You dont sound as if you fit that group.As I am not too clued up on these matters, would it be best to whack it into the Pru again?
you probably cant increment the Pru plan as its so old. However, you can check.
If you are struggling, then get a local IFA to do it for you.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks. I will check with the Pru. I thought that maybe 6k was too small 'beer' for an IFA to deal with. If you think they would, do you know how to find a reputable one? I have seen the website 'unbiased' bit it looks like one that anybody can put themselves on!0
-
Many would think that way but a smaller local firm may not as they rely on word of mouth and being known in the community.I thought that maybe 6k was too small 'beer' for an IFA to deal with
The vast majority are reputable. Your transaction is also very simple for an IFA so you dont need any specialist.do you know how to find a reputable one?
IFA Promotions, that run that site, vet applications to ensure that the firm is FSA authorised. You have to have an FSA number to be on that site.I have seen the website 'unbiased' bit it looks like one that anybody can put themselves on!I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for your suggestions.
Sarah0 -
sarahpenny,
Putting money into private pension schemes such as the Pru is the highest risk, and gives you the least control.
If investing your retirement funds in equity type products is what you favour, then go down S&S ISA, or SIPPS if you feel you understand investing. At least you have more control.
Otherwise stick to safe and secure, there are a multitude of options.
Best of fortune.0 -
Putting money into private pension schemes such as the Pru is the highest risk, and gives you the least control.
There is no risk associated with using a pension. They dont make or lose money. They are just a container for the investments you choose. For consumer protection, pensions have uncapped FSCS protection.If investing your retirement funds in equity type products is what you favour, then go down S&S ISA, or SIPPS if you feel you understand investing. At least you have more control.
If you put the same investment in a pension, ISA or held unwrapped then the returns will be the same except for tax and the maturity process.
Virtually the same investments are available for all tax wrappers nowadays. So anyone that says you dont have control really doesnt know what they are talking about.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
This might be a good opportunity to review the old Pru pension and see if it should be moved as it's so old. Things to watch out for are any valuable guaranteed annuity rates if it is a With profits pension, and any penalties for moving.Ask about charges and get an updated transfer value when asking if you can add more money to it.Ask about the investment choices..
You may also wish to update your forecast for the 2 state pensions as the rules have changed recently.Are you contracted in or out of the second state pension?Now might be a good time to contract back in, if the latter.
http://www.direct.gov.uk/en/Pensionsandretirementplanning/TaxandNationalInsuranceinretirement/GettingyourtaxandNationalInsuranceright/DG_10021384.Trying to keep it simple...
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards