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    • Mick442504
    • By Mick442504 12th Feb 18, 7:56 PM
    • 17Posts
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    Mick442504
    Advice about Personal Pension
    • #1
    • 12th Feb 18, 7:56 PM
    Advice about Personal Pension 12th Feb 18 at 7:56 PM
    Am looking at setting up a personal pension but am a bit stuck as to whether to go with Virgin Money Personal Pension or the Hargreaves Lansdown SIPP. I am edging towards Virgin as it seems much more straight forward as i just invest my money and they invest it on the FTSE Index for me instead of me having to go out looking for where to invest. What would you guys suggest?

    Thanks
Page 1
    • ProDave
    • By ProDave 12th Feb 18, 8:07 PM
    • 639 Posts
    • 682 Thanks
    ProDave
    • #2
    • 12th Feb 18, 8:07 PM
    • #2
    • 12th Feb 18, 8:07 PM
    Look not at what or how it is invested, but what your options might be to so use the money in retirement. The options may be very very different.
    • dunstonh
    • By dunstonh 12th Feb 18, 8:24 PM
    • 91,102 Posts
    • 58,115 Thanks
    dunstonh
    • #3
    • 12th Feb 18, 8:24 PM
    • #3
    • 12th Feb 18, 8:24 PM
    I am edging towards Virgin as it seems much more straight forward as i just invest my money and they invest it on the FTSE Index for me instead of me having to go out looking for where to invest. What would you guys suggest?
    That is just about one of the worst pensions available on the retail market. Around 3 times the cost of a pension arranged via an IFA or using a proper DIY provider.

    it is also a very bad way to invest. (single sector investing that is)
    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 an Independent Financial Adviser local to you.
    • BLB53
    • By BLB53 12th Feb 18, 8:25 PM
    • 1,207 Posts
    • 995 Thanks
    BLB53
    • #4
    • 12th Feb 18, 8:25 PM
    • #4
    • 12th Feb 18, 8:25 PM
    I think both options are more expensive and you could probably do better over the long term by selecting a low cost sipp from the likes of AJ Bell Youinvest or Charles Stanley Direct and then investing your monthly contributions into a multi-index fund like Vanguard Lifestrategy. The charges would work out at 0.5% compared to 1.0% from Virgin.

    Maybe do a bit more research into the options and get hold of 'DIY Pensions' by Edwards to provide a good overview.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • Audaxer
    • By Audaxer 12th Feb 18, 8:31 PM
    • 913 Posts
    • 504 Thanks
    Audaxer
    • #5
    • 12th Feb 18, 8:31 PM
    • #5
    • 12th Feb 18, 8:31 PM
    Am looking at setting up a personal pension but am a bit stuck as to whether to go with Virgin Money Personal Pension or the Hargreaves Lansdown SIPP. I am edging towards Virgin as it seems much more straight forward as i just invest my money and they invest it on the FTSE Index for me instead of me having to go out looking for where to invest. What would you guys suggest?

    Thanks
    Originally posted by Mick442504
    As the Virgin one seems to be fully invested in the FTSE All Share it's not very diversified - it is better to be invested in a globally diversified multi asset fund, with the percentage of equities and bonds to match your risk level. Virgin at 1% annual charge is also expensive compared to other investment brokers. HL are not the cheapest but are cheaper than Virgin and it's not that difficult to choose a passive globally diversified low cost multi asset fund to invest in their SIPP. There is plenty of information on this forum about these types of funds if you do a bit of research on this forum or sites like Monevator.
    • Mick442504
    • By Mick442504 15th Feb 18, 4:46 PM
    • 17 Posts
    • 0 Thanks
    Mick442504
    • #6
    • 15th Feb 18, 4:46 PM
    • #6
    • 15th Feb 18, 4:46 PM
    Thank you for your answers, is there any other firms out there like Virgin that would invest for me instead of me having to invest myself?
    • xylophone
    • By xylophone 15th Feb 18, 5:48 PM
    • 24,514 Posts
    • 14,362 Thanks
    xylophone
    • #7
    • 15th Feb 18, 5:48 PM
    • #7
    • 15th Feb 18, 5:48 PM
    http://monevator.com/using-vanguard-lifestrategy-funds-life/

    https://www.moneysavingexpert.com/savings/cheap-sipps

    As a beginner HL SIPP might suit.

    If you lack confidence, you might consult a local IFA

    https://directory.moneyadviceservice.org.uk/en
    • BLB53
    • By BLB53 15th Feb 18, 6:09 PM
    • 1,207 Posts
    • 995 Thanks
    BLB53
    • #8
    • 15th Feb 18, 6:09 PM
    • #8
    • 15th Feb 18, 6:09 PM
    Thank you for your answers, is there any other firms out there like Virgin that would invest for me instead of me having to invest myself?
    Have a look at the robo advisors such as Moneyfarm, Nutmeg etc.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
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