Pension for a baby

LeadFarmer

jeepjunkie wrote: »

Yeah the Aviva Stakeholder for DD cost ~£30 to setup through Cavendish though if I was doing it again I would have gone straight to the HL SIPP with zero setup cost Cheers

Im struggling to understand the difference between a stakeholder pension and a SIPP. I was assuming I would need a more hands on approach with a SIPP where I control where its invested? I don't have that knowledge so I wouldn't want to do that. Doesn't the HL SIPP have higher management fees? Have I misunderstood them both?

atush

The differencr between a Sipp and a Stakeholder pension is, that stakeholders have very limited invstment options- but you still get to choose the investment.

Sipps cover everything from single shares to investment trusts, funds, Reits, bonds etc. It is generally for more experienced investors, but youc an hold simple things for those who arent- such as multi asset funds (that hold both equities and bonds) and global trackers.

Sipps used to cost more (and can still do) but stakeholders can be now more expensive.

LeadFarmer

atush wrote: »

The differencr between a Sipp and a Stakeholder pension is, that stakeholders have very limited invstment options- but you still get to choose the investment.

Sipps cover everything from single shares to investment trusts, funds, Reits, bonds etc. It is generally for more experienced investors, but youc an hold simple things for those who arent- such as multi asset funds (that hold both equities and bonds) and global trackers.

Sipps used to cost more (and can still do) but stakeholders can be now more expensive.

Thanks. Could I take out a HL SIPP and let them do the deciding for me, or does that defeat the purpose of the SIPP? I kind of just want to make the monthly investments, and leave it to them as I don't have the knowledge to make such decisions. Maybe a Stakeholder would suit me better?

[Deleted User]

Sure the HL junior sipp charges 0.45% but there are loads of tracker funds for <0.1% so a SIPP does not have to be expensive vs a stakeholder. E.g. you can get Blackrock funds for 0.06%

In saying that DDs HL JISA, the most expensive fund is by far the best performing...

The only annoying thing about the Aviva Stakeholder is no online access.

As you do... it will be reviewed in a few years

Cheers

LeadFarmer

jeepjunkie wrote: »

The only annoying thing about the Aviva Stakeholder is no online access.

Would I need online access though? If all I want to do is pay into it and forget then I could rely on an annual statement I guess?

[Deleted User]

LeadFarmer wrote: »

Would I need online access though? If all I want to do is pay into it and forget then I could rely on an annual statement I guess?

Yeah it's not a deal breaker but kinda backward these days.

Would be nice if Aviva made this omission for minors prior to purchase as the product is clearly advertised as having online access...

Cheers

JackRussell

Decided to go with HL Junior SIPP. Let see how it performs initially - fingers crossed.

LeadFarmer

JackRussell wrote: »

Decided to go with HL Junior SIPP. Let see how it performs initially - fingers crossed.

Are you having to manage the investment yourself, or can HL do it on your behalf?

LeadFarmer

jeepjunkie wrote: »

Yeah the Aviva Stakeholder for DD cost ~£30 to setup through Cavendish though if I was doing it again I would have gone straight to the HL SIPP with zero setup cost Cheers

Can I ask why you would choose HL SIPP over Aviva Stakeholder please?

Im tempted to take out the Aviva Stakeholder so I can set up a direct debit and mostly forget about it.Not sure I feel knowledgable enough to be in control of a SIPP.

[Deleted User]

LeadFarmer wrote: »

Can I ask why you would choose HL SIPP over Aviva Stakeholder please?

Im tempted to take out the Aviva Stakeholder so I can set up a direct debit and mostly forget about it.Not sure I feel knowledgable enough to be in control of a SIPP.

Just what I said above really, nice to have more flexibility and online access.


But... given the timescales involved here it's not a deal breaker and very much fits the fit and forget model


Indeed, being DDs money, I'll just be increasing the monthly contribution/chucking in the odd lump sum occasionally.


The growth over such a long period of time should be impressive even with modest amounts.


In this case the pension is by far the smallest slice of her overall savings. Like the [way more...] knowledgeable on this board have already mentioned e.g. property ladder, education, travel, transport to give them a boost just like my parents did for me


Cheers