Personal Pension into Sipp

xmodz

Im currently 19 at university and self employed.

I want to get the most out of my money. Iv been investing through a share isa so far but want to start a pension early so when i get older the payments I have to make to get my required income I want are not that big.

Im looking to start a personal pension preferably this one
http://uk.virginmoney.com/virgin/pension/personal/index.jsp
unless someone can advise a better one

while at university or until I have got £10,000 in there.

If i open a personal pension will i be able to transfer this into a sipp

mania112

Virgin Money pensions are pretty much the worst, ANY other is likely to be a better choice.

search: cavendish online, they've got a good selection of providers. Costs £30 to set up I believe.

Yes, later on you can transfer PP to SIPP.

xmodz

mania112 wrote: »

Virgin Money pensions are pretty much the worst, ANY other is likely to be a better choice.

search: cavendish online, they've got a good selection of providers. Costs £30 to set up I believe.

Yes, later on you can transfer PP to SIPP.

thanks will look into it, I dont want to put too much money into until i start full time work.
And with Sipp charges it would be very hard to make a decent amount of money

atush

far be it from me, to put someone off investing in pensions. But I will say, have an emergency cash float as well. In your case as a student it could be much lower than for some (who we advise to have 6 months of spending). One month's spending could work for you.

spot1034

Look at Hargreaves Lansdown's Vantage SIPP. If you want to invest in individual shares they will charge a monthly fee, but if you choose funds they don't, and I believe they're now going to rebate part of their ongoing commission from funds, as they already do with non-pension investments.

You'll also be on their mailing list and get all their regular newsletters.

westy22

You'll also be on their mailing list and get all their regular newsletters.

You'll never feel lonely if you're with HL - I receive more contacts and letters from them than I do from my friends and family!

dunstonh

Don't take this the wrong way but when xmodz did his own research, he managed to pick just about the worst pension on the market. By encouraging him to look at a SIPP with 30,000 odd investment options, what confidence do you have that the "right" investments will be selected.

xmodz

dunstonh wrote: »

Don't take this the wrong way but when xmodz did his own research, he managed to pick just about the worst pension on the market. By encouraging him to look at a SIPP with 30,000 odd investment options, what confidence do you have that the "right" investments will be selected.

it was a quick google search that came up with virgin pension, havent looked around until today.

iv been investing in the stock market for the last three years and have made good gains, only three shares have lost me money.

the reason why i dont want to currently invest in a sipp is i dont want too much money in and sipp fees will gobble up any little amount i paid in.

atush

Have you checked the fees for Sipps? Some are quite low.

xmodz

atush wrote: »

Have you checked the fees for Sipps? Some are quite low.

iv checked a few, which have around £10 charge per quarter minimum.

are there any ones that offer no annual charges and just charges when you trade

snowcat53

Some Sipps do not charge a set up or annual fee, depending on what you invest in. Sippdeal and Bestinvest for example. Both these discount the initial fund purchase fees to zero and discount the fund annual charges (but not fully).

So for example Bestinvest charge you no fees if you invest in (most?) active funds or some trackers (eg HSBC), and no fee for fund purchase or switch. But if you hold Vanguard funds or ETF s they charge a flat £120 pa custody fee (because they dont get any money from those).

Sippdeal also have zero set up and annual fees and hold active funds &/or ETFs for free, but they charge on fund purchases (10) and switches (20) and £60 pa for holding Vanguard or HSBC.

The above is true AFAIK but check it out. So it can get tricky disentangling it all but the point is a SIPP need not be an expensive option and may be cheaper than other options. And certainly than Virgin.

Another thread recently highlighted a useful online calculator (candidmoney I think) to find the chapest SIPP to hold particular funds etc.