Wifes pension

bigadaj

margaretclare wrote: »

Yes, I find the same, and I don't care what colour braces they wear or what kind of car.

Look at HL's 'Wealth 150' list just to narrow it down a bit out of all the unit trusts and OEICs that exist out there. Read what is written about each one, the individual managers, their track records etc.
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They are expensive and, more importantly for many, have introduced additional fees including exit fees when their rdr changes were announced. There are many threads on her about this, and many people feel duped by them.

Nothing wrong with paying extra for a service but many consider them to have used underhand tactics to try and maintain profits whilst trying to not appear as expensive as they really are.

The wealth 150 is pretty universally acknowledged to refer to their wealth rather than yours, the presence of a fund on this list has historically been related to additional hl commissions rather than the quality of the fund.

You are generally best by using internet research from sites such as monevator, here, motley fool, candid money etc and also reading up, tim hales smarter investing is often quoted and generally an informative read, though information from as many sources as possible is always best.

Everyone need to work out their own risk levels, then asset allocation and then assign that money. I always use trustnet for fund research as it is unbiased.

TBC15

There is some very good information coming out on this thread that was initially intended to check the feasibility of a cunning ploy,and I appreciate the contributions made by all assisting. However the relative differences in costs for a max18k (total) over hopefully less than 4 yrs is relatively small in the big scheme of things. That’s not to belittle anyonewho would regard the sums mentioned as quite significant.

One thing this thread has done is focus my mind on costs. For the last 18 yrs I’ve decided to be masterof my own destiny with regard to retirement almost exclusively investing in unit trustsvia Best Invest/Fidelity and in later years Fidelity direct. What was a rewarding hobby based on nothing more than the ability to read a graph (thank you trustnet) has become a more serious issue as I approach retirement in 5-10yrs time.

zagfles

jem16 wrote: »

Better depends on your objectives. However you asked for cheaper and the link I gave you for Cavendish started at 0.55% for a stakeholder and 0.7% for a PP.

What was your choice based on?

The Cavendish website implies those are AMCs rather than the TER which you used for the HL charge? Plus there's a fee from Cavendish of £35 which would be nearly 1% of a £3600 investment.

Either way the charges are fairly trivial for a small investment.

jem16

zagfles wrote: »

The Cavendish website implies those are AMCs rather than the TER which you used for the HL charge?

I compared the AMC with the TER because with most pension funds from Insurance companies, the AMC is the TER.

Have a look at the fund list from Aviva - you'll need to filter for pension funds and then Stakeholder. Click on Fund charges and you will see that all have an FMEC as 0.00%.

http://www.fundslibrary.co.uk/FundsLibrary.BrandedTools/AvivaConsumer/FundCentral#Price

Plus there's a fee from Cavendish of £35 which would be nearly 1% of a £3600 investment.

You're correct although as it's only an initial fee, it wouldn't be ongoing and the OP seems now to be talking about up to £18k and around 4 years.

I also noticed that you can now go direct to Aviva and get the same AMC of 0.55% if you apply online. No mention of any further fee.

http://www.aviva.co.uk/stakeholder-pension/is-a-stakeholder-pension-right-for-you.html

Doesn't really matter though as the OP feels that a SIPP from HL is the most suitable for his wife.

margaretclare

Doesn't really matter though as the OP feels that a SIPP from HL is the most suitable for his wife.

But what does his wife think/feel/want?

EdGasket

She does what she's told like a good wife

atush

Sounds like it lol/

A sipp is fine, really.

But if all you need is funds, do look to see if you can find it cheaper elsewhere.

TBC15

Could you confirm the cash is tax free when it comes out?

jem16

TBC15 wrote: »

Could you confirm the cash is tax free when it comes out?

25% of it will be tax free. The rest would be taxed as normal income depending on your wife's tax status.

atush

The 18K as a LS under triviality? No, not exactly. It is 25% tax free, then the rest is taxed at her normal rate.

So, 4500 TF, then if she has no other income that year, her PA will take up over 10K and the residue would be taxed. so around 3K would be taxed.

So arrange for her to take it the tax year before she gets her SP?