Pension for Son

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Comments

  • sunnyjim1234
    sunnyjim1234 Posts: 41 Forumite
    xylophone wrote: »
    Incidentally, you said your son was eight years old in 2005 which makes him only 20 now.

    You also say

    My son is now half way through a PhD, so has spent longer at Uni than anticipated

    Is he an exceptionally bright young fellow or is there a typo somewhere?

    Sorry, my mistake:embarasse
    Well spotted, he's 22 now so must have been around 10 back in 2005.
    Regards
    James
  • sunnyjim1234
    sunnyjim1234 Posts: 41 Forumite
    xylophone wrote: »
    https://extranet.friendslife.co.uk/pub/doc/documents/SHPG.PDF

    This is your plan?

    Thank you very much, good of you to take the time.
    Regards
    James
  • dunstonh
    dunstonh Posts: 116,281 Forumite
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    sunnyjim1234 wrote: »
    Thanks for your reply.

    Sorry to be so vague. At the time I started the plan I was taking out a new mortgage and I asked the mortgage adviser to recommend something suitable. Looking through the paperwork, all I can see is that the contributions were invested in the Lifestyle retirement fund(s) which was the default investment choice.
    Not sure if that means anything to you?

    That would almost certainly make it the Saver version of the AXA stakeholder. A poor quality option with just one fund (a lifestyle fund). Nearly always set up at 1.0% AMC although the potential to get discounted did exist although rarely used as most of these were sold through the AXA tied salesforce and not IFAs (if an IFA wanted to use the AXA stakeholder, they would have used the other version that AXA had available)

    That product is no longer available for new business but can be topped up.
    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.
  • sunnyjim1234
    sunnyjim1234 Posts: 41 Forumite
    dunstonh wrote: »
    That would almost certainly make it the Saver version of the AXA stakeholder. A poor quality option with just one fund (a lifestyle fund). Nearly always set up at 1.0% AMC although the potential to get discounted did exist although rarely used as most of these were sold through the AXA tied salesforce and not IFAs (if an IFA wanted to use the AXA stakeholder, they would have used the other version that AXA had available)

    That product is no longer available for new business but can be topped up.

    Thank you very much.
    So presumably it is worth considering other options?
    If so,would I be on the right track looking at VLS?
    Regards
    Ian
  • dunstonh
    dunstonh Posts: 116,281 Forumite
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    If so,would I be on the right track looking at VLS?

    The AXA lifestyle funds start with 100% global equity and then worked down the risk scale over time. VLS100 is 100% global equity but always remains 100% global equity. Loss potential is 50% over 12 months. So, very high risk.
    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.
  • sunnyjim1234
    sunnyjim1234 Posts: 41 Forumite
    dunstonh wrote: »
    The AXA lifestyle funds start with 100% global equity and then worked down the risk scale over time. VLS100 is 100% global equity but always remains 100% global equity. Loss potential is 50% over 12 months. So, very high risk.

    I appreciate what you are saying regarding risk, but with a 40 year investment horizon I don't think it is unacceptable. Maybe time will prove me wrong, I hope not. I imagine the existing fund is still equity heavy? So there wouldn't be much change there, and more diversification must be a good thing, as are lower charges.
    The idea of this plan was to kickstart his retirement planning, I know there will be market corrections and crashes along the way, thats only to be expected.
    I would hope he would not lose too much sleep over market volatility.
    Many Thanks again
    James
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    At his age he might be better contributing not to a pension but to a LISA. That might help him buy a property at age (say) thirty. He can pay into a pension when he starts getting an employer's contribution.

    He can afford to defer paying into a pension because good old Dad has given him a flying start.
    Free the dunston one next time too.
  • sunnyjim1234
    sunnyjim1234 Posts: 41 Forumite
    kidmugsy wrote: »
    At his age he might be better contributing not to a pension but to a LISA. That might help him buy a property at age (say) thirty. He can pay into a pension when he starts getting an employer's contribution.

    He can afford to defer paying into a pension because good old Dad has given him a flying start.

    Thats an excellent idea. Didn't think of that.
    That gives the Government uplift but without the inflexibility of the pension.
    Thank you very much.
    Regards
    James
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