Nucleus wrap

Robin_C_2

Hi,

I am writing to ask for some thoughts on opening a Nucleus wrap.

I'm a UK expat and have been looking for something that allows me to take advantage of my employer's matching contribution pension scheme. I don't like the look of the usual life assurance offerings but have found it hard to find a product which I like, and meets the criteria of my employer.

A financial adviser recently suggested a Nucleus wrap. I do like the look of this, especially if it allows me to invest in a SIPP as an expat.

However, the financial adviser has quoted me £2500 as a setup fee. This seems large, considering I am virtually just starting out saving into a pension and will be paying relatively little in each year.

If it's possible I will ask him to set it up as a self-administered account - so I won't be paying ongoing fees. I think this is possible with the Nucleus wrap? So although £2500 seems really high, but if I stayed with Nucleus for 25 years, it'd be okay percentage-wise over the entire investment period.

Having said that, two and a half grand to open an account???? Is it possible to set up these wrappers — Nucleus or Elevate — yourself, without using a financial adviser?

I would really appreciate any thoughts on this.

with regards,

Robin

matthewc_3

i use a financial advisor on a Nucleus wrap.... I pay 1% of amount being invested as upfront/setup fee.... and then 0.5% a year

hope helpful.
matt

dunstonh

Nucleus is a platform like many others. A lot of the time, the platform selected is preference as they are much the muchness (although some are more fund supermarket than full wrap platforms).

However, the financial adviser has quoted me £2500 as a setup fee. This seems large, considering I am virtually just starting out saving into a pension and will be paying relatively little in each year.

My guess, and it is just that based on the type of adviser that typically uses nucleus, is that the adviser is more geared to higher net worth clients. So, £2500 on say a £500k holding is fine but £2500 on an amount starting up seems high. However, one of the objectives of the RDR was to price advice, not the product. So, if their charge is £2500 across the board then a small investor is probably better off not using them.

Having said that, two and a half grand to open an account???? Is it possible to set up these wrappers — Nucleus or Elevate — yourself, without using a financial adviser?

No. They are adviser platforms. You could use a DIY platform although some may not offer business if you are non-resident.

jamesd

Robin_C wrote: »

I do like the look of this, especially if it allows me to invest in a SIPP as an expat.

As an expat, are you going to be getting any tax relief from some country that will pay it on contributions into UK pensions? How does the country where you're paying tax handle taxation on investments within a UK pension?

Robin_C_2

dunstonh wrote: »

So, if their charge is £2500 across the board then a small investor is probably better off not using them.



No. They are adviser platforms. You could use a DIY platform although some may not offer business if you are non-resident.

thanks Dunstonh. Do you know of any DIY platforms that are available to expats. Or any other options for the small investor?

Robin_C_2

jamesd wrote: »

As an expat, are you going to be getting any tax relief from some country that will pay it on contributions into UK pensions? How does the country where you're paying tax handle taxation on investments within a UK pension?

James — I'm in South Korea. I think it might be possible to claim payments into a pension as a tax-deductible expense.

Really, I would simply like to open a SIPP. But it seems that all providers require you to have been resident in the UK for tax purposes during the present financial year.

If anyone knows of a SIPP that would allow expats to join, I would really appreciate some information about it. It seems to me that as long as I did not get the usual 20% rebate that UK residents get, then there would be no real reason why an expat should not pay into a SIPP.

sandsy

I just did a quick google and ended up quite randomly reading the James Hay SIPP guide. It was quite clear that non-UK residents could open and contribute as much as they want to SIPPs but just wouldn't receive tax relief.


There's lots of SIPP offerings available online which are effectively DIY if you're comfortable directing your money to specific funds for yourself.

DavidLaGuardia

sandsy wrote: »

I just did a quick google and ended up quite randomly reading the James Hay SIPP guide. It was quite clear that non-UK residents could open and contribute as much as they want to SIPPs but just wouldn't receive tax relief.
.

Erm, then what on earth would be the point?

I cannot imagine any situation where there wouldn't be a better alternative to a SIPP if there was going to be no tax relief added to contributions.

Jonbvn

Robin_C wrote: »

James — I'm in South Korea. I think it might be possible to claim payments into a pension as a tax-deductible expense.

Really, I would simply like to open a SIPP. But it seems that all providers require you to have been resident in the UK for tax purposes during the present financial year.

If anyone knows of a SIPP that would allow expats to join, I would really appreciate some information about it. It seems to me that as long as I did not get the usual 20% rebate that UK residents get, then there would be no real reason why an expat should not pay into a SIPP.

As an expat, why would you want to start a SIPP? You will not receive the tax relieft as per a UK resident. Much better to invest offshore UK.

Jonbvn

jamesd wrote: »

As an expat, are you going to be getting any tax relief from some country that will pay it on contributions into UK pensions?

I am fairly certain that no country will provide tax relief on contributions to a pension in another country. Somebody care to correct me?

Perelandra

I guess the only point would be if the employer required the investments to be in a pension, if they were matching it (which would be reasonable). OP's original post suggests that might be the case?

If not, then I agree paying money into a pension without tax relief would be daft!