Personal Pension into Sipp

BLB53

Here's a link to a guide on RIT which may help - also some interesting recent articles

http://www.retirementinvestingtoday.com/2012/08/the-cheapest-low-cost-sipp-self.html

snowcat53

Found the site I mentioned above
http://www.candidmoney.com/articles/266/fund-platform-comparison-site-launch
Seelso main site for low cost SIPP guide

fairleads

[Im currently 19 at university and self employed.

I want to get the most out of my money. ]

Then don't use a pension fund. Over a 42 year period, you only need to make an extra .5 % p/a return on funds invested in a S&S Isa to make up for the loss of the 20% tax relief on your pension contributions.

atush

OP, Fairleads is a one trick pony.

ISAs are good (great even) and like him I suggest you have some.

But pensions are good too. A wise person would have both.

dunstonh

pensions can have the same investments and charges as an ISA. So, when people say they can earn more on the ISA then it indicates they are not comparing like for like.

xmodz

atush wrote: »

OP, Fairleads is a one trick pony.

ISAs are good (great even) and like him I suggest you have some.

But pensions are good too. A wise person would have both.

yep, iv got a S&S isa as well,

i personally dont like cash isa as the return is rubbish to be honest

JoeCrystal

xmodz wrote: »

yep, iv got a S&S isa as well,

i personally dont like cash isa as the return is rubbish to be honest

But if you are saving for short term period like a house deposit then Cash ISA would be quite useful.

Cheers,
Joe

fairleads

[QUOTE Fairleads is a one trick pony.

[/QUOTE]

The trick is to choose the right pony.

fairleads

dunstonh wrote: »

pensions can have the same investments and charges as an ISA. So, when people say they can earn more on the ISA then it indicates they are not comparing like for like.

The point is, all other thing being equal, that investors only need a slightly better return to beat the 20% tax relief on pension contributions. In addition, one can trade within an Isa and make taxfree gains. This applies up to and after retirement. Whereas 75% of pension gains will be subject to tax in retirement. Further, in drawdown, income is adjustable only every three years. Pensions are not for BR tax payers unless of course, their employer at least matches the individual's contribution.

atush

fairleads wrote: »

[QUOTE Fairleads is a one trick pony.

The trick is to choose the right pony.

The trick is to choose two or more ponies.

All you eggs in one basket is not a wise approach.