Cavendish Online

mealmond

Hi

Rather late in the day I plan to start my pension.

I have decided to go for a Stakeholder Pension with L& G.

Could somebody confirm for me that it would be cheaper to use Cavendish Online, I read about them on here, rather than go direct to L & G online.

It's a big decision and I want to make sure I am getting the most cost effective method to start a pension at this point.


Many thanks

Martin

dunstonh

Could somebody confirm for me that it would be cheaper to use Cavendish Online, I read about them on here, rather than go direct to L & G online.

Yes. Although that may not be the cheapest option. Especially if you are aged under 45.

It's a big decision and I want to make sure I am getting the most cost effective method to start a pension at this point.

Charges are a secondary concern. Charges may differ by 0.1-0.3% a year. That is small fry compared to investment returns. for example, the markets have moved by 0.4% today. It is important not to get carried away with 0.x% a year when investments can cancel that out in just one day.

mealmond

Thanks for the response.

I'm 41 with a couple of very, very small pensions from many years ago, that I don't want to re start, well one I cannot restart as it when I worked for the NHS.

I can only afford to pay in about £50 a month to start, but that is only to get me started, after that I want to raise the amount monthly and keep raising it but always making sure it's affordable.

I am aware cost it not everything, but I don't want to pay way over the odds and I thought Cavendish sounded just what I was looking for.



Martin

sdooley

dunstonh wrote: »

Charges are a secondary concern. Charges may differ by 0.1-0.3% a year. That is small fry compared to investment returns. for example, the markets have moved by 0.4% today. It is important not to get carried away with 0.x% a year when investments can cancel that out in just one day.

Very low charges may or may not be correlated with high (net) investment performance. But very high charges are correlated with low (net) investment performance.:cool:

The difference between 0.3% p.a. and 0.7% p.a. is one thing.:o If you have an old endowment clocking up 3-4% annual fees, you know you are in trouble.:mad:

sdooley

The other area where low fees are important is our old friend the 'low risk' investor. A pension or trust fund with a 25% allocation to cash should not be paying 1%+ fees on that part of the fund.