Pension for my sons
Comments
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Also I understand insured funds in a stakeholder are protected above the normal 50k FSCS limit however above roughly 80k a fixed price SIPP is usually cheaper.
Personal pensions come in cheaper than stakeholder typically around 20-25k.(unless you have an IFA adding their management cost which is why it's worth paying Cavendish £35 execution only setup fee)
We do child stakeholders free of charge for our clients. So, if the OP does have an IFA, they should check as there may not be any additional charges.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 -
But from a total fees perspective if you start with a stakeholder or percentage based SIPP its not really worth taking the mid step of transfering to an IFA arranged personal pension before moving into a fixed or capped price SIPP?
Surely a single fund fixed priced SIPP at £180 or a ETF capped price SIPP (but you might spend the saving in transaction costs for ETF rebalancing) has be the lowest cost option for those with hundreds of thousands to invest?0 -
But from a total fees perspective if you start with a stakeholder or percentage based SIPP its not really worth taking the mid step of transfering to an IFA arranged personal pension before moving into a fixed or capped price SIPP?
You cant assume that the child or the parent will be monitoring it that closely. The majority of the public will not.
Plus, its largely pointless trying to guess what the options and prices will be in 18 years time, let alone later. These things have a habit of changing every 5-10 years. A stakeholder has guarnatees on its structure. So, its the easist option for an under 18. And if they do end up staying in it beyond 18, then its no harm.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 -
Hi Cloud Dog, they are 26.
Steve0
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