Best Stakeholder Pension for 5yr old?

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  • Pal
    Pal Posts: 2,076 Forumite
    We were talking about completely different things. I would not invest in the type of funds you are discussing.

    Chipz - Presumably HL's commission paid as a result of bid-offer spreads on the investment funds? That being the case would Martin's "repensioning" idea apply to get some of the commission back?

    As mentioned above I am not a fan of investing in the type of funds mentioned by DD, which I presume are the ones you are suggesting as well. Investing in a hotch-potch of funds chosen by an insurance company for marketing reasons is not my idea of a good investment policy.
  • Rafter
    Rafter Posts: 3,850
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    Tricky,

    50 years is a long time!

    Are you sure you wouldn't be better off choosing a shorter term investment so that when he is 21 and has left university (probably with debt) he can start his working life debt free and start saving for his first house etc.

    Alternatively he might decide to take a gap year and explore the world and your modest saving might fund a round the world ticket to give him that opportunity?

    I know we should all be thinking about our retirement, but educating him about financial matters and ensuring he makes adequate pension provision once he is of working age might be a greater gift.

    I know I really appreciated the start in life given to me by my father and grandfather when I was 18 which meant I left university debt free?

    R
    Smile :), it makes people wonder what you have been up to.
  • Rafter

    I appreciate what your saying. I'm trying to cover most eventualities, my parents couldn't afford anything for me, and I've not ignored the cost of education. As someone with an index linked final salary pension, I think such luxuries will never be available to him. A £20 per month investment for 15-20 years with tax relief should provide him with a modest start.

    The rest of you guys

    Thanks for the advice I mean reserach tips. But your technical arguements about funds of funds have lost me.

    How would I access such funds PAL names above?
  • Pal
    Pal Posts: 2,076 Forumite
    It is "Pal" :(

    I am not entirely sure to be honest. Scottish Life offer Escher's manager of manager funds, although I don't know whether or not they are open to retail investors. Have a dig around on their website.

    Frank Russell's MoM funds are huge so they should be available all over the place. Perhaps an IFA can help?
  • dunstonh
    dunstonh Posts: 116,037
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    I use Scottish Life an awful lot and they only provide business through IFAs.  The Escher funds are available through them but I think it is only on their personal pension rather than their stakeholder (not 100% sure on this but I am popping onto Scottish Lifes extranet later to grab an illustration so can check).    As the premium is below the personal pension minimum, that would eliminate them if this is the case.  Which would be a shame as the Scot Life PPP is very cost efficient.   I did one yesterday that had a reduction in yield to 6.3% (compared with stakeholders 5.9/6.0%).

    edit: confirmed that those funds are only on the PPP and not SHP
    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.
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