Thoughts on this plan- Using SIPP instead of ISA

madeinireland_2

Hmmmm I'm not sure you are fully understanding what you are missing out on by earning a small percentage increase on ISA's as opposed to a 40% uplift by avoiding paying HRT.

Also there is not much wrong with the index trackers that the scheme invests in - I've made loads as a result of using them over the last few years - of course that might not continue but the same could be said for any investment. It helps to get the 40% uplift at the start.

Dunnit

You should also be wary about having too great a percentage of your funds invested with BT through your Sharesave scheme. At the turn of the century staff shareholders in Bank of Scotland and Tesco, to name just two, would have thought they were in safe investments.

Gadfium

Dunnit wrote: »

You should also be wary about having too great a percentage of your funds invested with BT through your Sharesave scheme. At the turn of the century staff shareholders in Bank of Scotland and Tesco, to name just two, would have thought they were in safe investments.

Thats a good point, and one that I am addressing. I have a chunk of BT shares that have done very well in terms of increases. I am moving these gradually (by selling and reinvesting) into funds to diversify.

madeinireland wrote: »

Also there is not much wrong with the index trackers that the scheme invests in - I've made loads as a result of using them over the last few years - of course that might not continue but the same could be said for any investment. It helps to get the 40% uplift at the start.

I put some thought into this over the weekend. I've throttled back on the mortgage overpayments and have started making a £500 per month payment into the LG Global Equity via a BT Pension Scheme AVC.

I will still contribute to my external ISAs as I will have a need for access to this cash in the future.