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  • FIRST POST
    • MSE Archna
    • By MSE Archna 8th Dec 06, 6:55 PM
    • 1,872Posts
    • 5,996Thanks
    MSE Archna
    Cheapest Sipp: build yourself a low cost DIY pension article
    • #1
    • 8th Dec 06, 6:55 PM
    Cheapest Sipp: build yourself a low cost DIY pension article 8th Dec 06 at 6:55 PM
    This discussion relates to the
    Last edited by MSE Andrea; 09-10-2014 at 1:57 PM.
    Report inappropriate posts: forumteam@moneysavingexpert.com




Page 17
  • jamesd
    I think stuff like annuities still have commission DIY. It would be a good idea to abolish it.
    Originally posted by zagfles
    And for the FCA to make it mis-sale by default to sell an annuity to a person without providing an illustration of what they could get from keeping money in cash while deferring their state pension and paying out an income equal to state pension plus proposed annuity during the deferring time.

    I haven't yet noticed someone here reporting being sold an annuity close to state pension age after 6 April 2015. When that happens I will recommend that they make a mis-selling complaint seeking redress of the difference between annuity income and increased state pension if they were not told of the option to defer their state pension. If that complaint is rejected I'll suggest that they take the matter to the FOS and ask the FOS to refer it to the FCA for the FCA to consider the clearly adverse outcome for the customer and whether explicit regulation is required.

    We don't have to just sit back and accept widespread abuse of annuity customers by annuity vendors.
    • mulberrymonkey
    • By mulberrymonkey 19th Nov 15, 11:32 AM
    • 7 Posts
    • 0 Thanks
    mulberrymonkey
    Hello. I plan to transfer £200k into a SIPP - I want to leave it there for around 5 years until I'm ready to buy an annuity - I'm not looking for growth, I just want to put it into a fixed income fund in order to keep it as safe as I can. Any thoughts on which company I should use to manage this? I want to keep my charges to a minimum - I was going to use Hargreaves Lansdown but at .45% this would be £900 per year for doing pretty much nothing. Selftrade looks a good option but I'd welcome any other thoughts thank you.
    • dunstonh
    • By dunstonh 19th Nov 15, 1:48 PM
    • 87,668 Posts
    • 52,894 Thanks
    dunstonh
    Hello. I plan to transfer £200k into a SIPP - I want to leave it there for around 5 years until I'm ready to buy an annuity - I'm not looking for growth, I just want to put it into a fixed income fund in order to keep it as safe as I can. Any thoughts on which company I should use to manage this? I want to keep my charges to a minimum - I was going to use Hargreaves Lansdown but at .45% this would be £900 per year for doing pretty much nothing. Selftrade looks a good option but I'd welcome any other thoughts thank you.
    Originally posted by mulberrymonkey
    How about personal pensions?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Thrugelmir
    • By Thrugelmir 19th Nov 15, 1:51 PM
    • 53,317 Posts
    • 45,903 Thanks
    Thrugelmir
    Take a look at X-o ( Liberty SIPP).
    ď ďBull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.Ē Sir John Marks Templeton
    • spexs
    • By spexs 24th Jan 16, 1:52 PM
    • 340 Posts
    • 42 Thanks
    spexs
    Cheap cash SIPP
    Between leaving her part time job (2017) and drawing her state pension (2020) my wife will have three years where she will have approx £5000 unused tax personal allowances p.a. She has no private pension. My thinking is to put £12k net (£15k gross) into a SIPP and draw it out totally tax free over the three years where she has the free PA. My thoughts are to put the money into a purely cash fund within a SIPP to avoid market fluctuations as it's a relatively short term "investment". If my plan make sense can anyone recommend a SIPP fits the bill.

    Thanks.
    • zagfles
    • By zagfles 24th Jan 16, 1:59 PM
    • 11,767 Posts
    • 9,723 Thanks
    zagfles
    Between leaving her part time job (2017) and drawing her state pension (2020) my wife will have three years where she will have approx £5000 unused tax personal allowances p.a. She has no private pension. My thinking is to put £12k net (£15k gross) into a SIPP and draw it out totally tax free over the three years where she has the free PA. My thoughts are to put the money into a purely cash fund within a SIPP to avoid market fluctuations as it's a relatively short term "investment". If my plan make sense can anyone recommend a SIPP fits the bill.

    Thanks.
    Originally posted by spexs
    HL might be a good choice as there's no charge for a cash SIPP, though you'll get very little interest. See http://forums.moneysavingexpert.com/showthread.php?t=5397588

    But keep an eye on the March budget as tax relief on pensions could change significantly.
    • Nick Storer
    • By Nick Storer 4th Jul 16, 3:54 PM
    • 1 Posts
    • 0 Thanks
    Nick Storer
    Cheap Administrator
    Now European Pension Management has gone bust I need a new administrator (ie cheap) any ideas please?
    • hogweed
    • By hogweed 13th Mar 17, 9:54 PM
    • 80 Posts
    • 12 Thanks
    hogweed
    Iím guessing this may be a silly question, and Iíve had a poke round here to see if anybodyís asked it already, butÖ Iím over 60, have £15k, which is just sitting in the bank, earning only a little interest.

    Please donít cringe too much if Iím being very naÔve here, but my cousin tells me he has put his £10k into a SIPP with Hargreaves Lansdown. He doesn't invest it in anything Ė just lets the cash lie there. Apparently, the government adds 20% in tax relief Ė so, for doing absolutely nothing, my cousin now has £12k.

    Life not being like that, whatís the catch please, so that I can make fun of him suitably?

    Thanks
    • bigadaj
    • By bigadaj 13th Mar 17, 10:18 PM
    • 8,930 Posts
    • 5,666 Thanks
    bigadaj
    Iím guessing this may be a silly question, and Iíve had a poke round here to see if anybodyís asked it already, butÖ Iím over 60, have £15k, which is just sitting in the bank, earning only a little interest.

    Please donít cringe too much if Iím being very naÔve here, but my cousin tells me he has put his £10k into a SIPP with Hargreaves Lansdown. He doesn't invest it in anything Ė just lets the cash lie there. Apparently, the government adds 20% in tax relief Ė so, for doing absolutely nothing, my cousin now has £12k.

    Life not being like that, whatís the catch please, so that I can make fun of him suitably?

    Thanks
    Originally posted by hogweed
    All fine, nothing wrong with that, fill your boots.

    The limitation is your annual earnings, normally through work, so not including investment income, property rental or pension, or £3600 gross, whichever is the higher.
    • Zanderman
    • By Zanderman 13th Mar 17, 10:36 PM
    • 1,136 Posts
    • 3,517 Thanks
    Zanderman
    .... Please don’t cringe too much if I’m being very naÔve here, but my cousin tells me he has put his £10k into a SIPP with Hargreaves Lansdown. He doesn't invest it in anything – just lets the cash lie there. Apparently, the government adds 20% in tax relief – so, for doing absolutely nothing, my cousin now has £12k....
    Originally posted by hogweed
    Tax relief is, surely, 25% because tax is 20%. So your cousin should have £12.5k.

    (the £10k had already been taxed, at 20%, so the £10k is 80% of what he had before tax, so he had 12.5k gross, taxed at 20%. Which left him with 10k net. Tax relief takes it back to 12.5k, which is, in effect, 25% back, on the net amount)
    • mahatma andy
    • By mahatma andy 13th Mar 17, 11:26 PM
    • 25 Posts
    • 4 Thanks
    mahatma andy
    I'm thinking of doing the same as the cousin for my wife. Is HL the best way to hold a sipp held in cash only? I think I read somewhere that if the funds are held in cash, then there are effectively no charges? Unfortunately I can't find a definitive reference to this.

    Thanks.
  • jamesd
    No explicit charges unless you close the account in the first year. They just keep most of the interest that is earned on the cash.
    • bowlhead99
    • By bowlhead99 14th Mar 17, 5:33 AM
    • 6,292 Posts
    • 11,094 Thanks
    bowlhead99
    I'm thinking of doing the same as the cousin for my wife. Is HL the best way to hold a sipp held in cash only? I think I read somewhere that if the funds are held in cash, then there are effectively no charges?
    Originally posted by mahatma andy
    Correct
    Unfortunately I can't find a definitive reference to this.
    You could start with http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates which says among other things, cost for an ongoing holding of "Cash - no charge".

    Interest rate is tiered so currently 0.03% on up to £4999, 0.04% on £5000 to £24,999
    • hogweed
    • By hogweed 14th Mar 17, 10:57 AM
    • 80 Posts
    • 12 Thanks
    hogweed
    Thanks so much for the helpful replies


    So what are the rules for withdrawing my cash once it’s in? Or is there somewhere I can look all this up, without having to bother you guys every time I don’t know something basic?
    • NoMore
    • By NoMore 14th Mar 17, 11:04 AM
    • 142 Posts
    • 116 Thanks
    NoMore
    The Hargreaves Lansdown website, has a good explanation for how Sipps work, from contributions and tax relief to drawdown and tax free lump sums.

    Just work your way thru the explanations, any questions come back and ask.
    • Sipowicz
    • By Sipowicz 14th Mar 17, 11:05 AM
    • 42 Posts
    • 14 Thanks
    Sipowicz
    http://forums.moneysavingexpert.com/showthread.php?t=5616496
    • OXFORD_SMOGGY
    • By OXFORD_SMOGGY 7th Apr 17, 9:56 PM
    • 559 Posts
    • 118 Thanks
    OXFORD_SMOGGY
    Any reccomendations for company I choose for my SIPP, I have a small pension of 2k Im happy to write off and have a bit of a gamble with. Should I be choosing a blue chip company with high dividend return or another strategy?
    Printing money since 2008
    • dunstonh
    • By dunstonh 7th Apr 17, 11:33 PM
    • 87,668 Posts
    • 52,894 Thanks
    dunstonh
    Any reccomendations for company I choose for my SIPP, I have a small pension of 2k Im happy to write off and have a bit of a gamble with. Should I be choosing a blue chip company with high dividend return or another strategy?
    Originally posted by OXFORD_SMOGGY
    When you DIY it is your choice. With just £2000 you probably shouldnt bother with shares due to dealing costs. Plus, the cost of a SIPP is likely to be heavy unless you plan to add to it.

    What is wrong with the pension you have?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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