What to do with cash?

Ganga

Thanks greenglide,will check on line for a diy platform/company

coyrls

greenglide wrote: »

I didnt mean they would want half but there would be costs from them.

Normally these things would be via one of the low cost DIY platforms, anything else would tend to be totally uneconomic

Not the sort of business Pru would be into..

Also lots of DIY platforms impose a penalty if you take all the money out of a SIPP within 12 months of opening it (e.g. Hargreaves Lansdown charge £354 "Early Account Closure Fee").

dunstonh

My current pension provider is the Pru and she is coming round with the forms for me to complete for my 25% tax free lump

The pru dont have agents to call around to do admin tasks.

However, I have received phone calls from people before who were given my number by the Pru. They do give out IFA numbers. So, are you sure it is someone from the Pru?

Ganga

Yes she is " a partner" with CeFA,DipFA after her name,she works for Prudential Financial Planning. She made an appoinment before i retired and came to the house with all the revelant paperwork pertaining to my funds,she left her business card and i contacted her thru head office

caveman38

Ganga wrote: »

Thanks for replies,so if i start a new pension with £2880.0 grossed up to £3600.0 can i then close it and draw the whole amount giving me £720.0 for nothing? and if so can you do it more than once per tax year?

Less SIPP provider fees.

dunstonh

Well that is a surprise. I hadn't realised that Pru had gone back to offering sales reps. However, just looked it up and see that they recently recruited 250 to sell their own product range.

The pension freedoms were mooted as something providers could use to bring back the bad old salesforces.

In this case, remember that Pru will charge a fee for the work. Probably in the region of £500. Not including product charges.

Ganga

Well that is a surprise. I hadn't realised that Pru had gone back to offering sales reps. However, just looked it up and see that they recently recruited 250 to sell their own product range.

The pension freedoms were mooted as something providers could use to bring back the bad old salesforces.

In this case, remember that Pru will charge a fee for the work. Probably in the region of £500. Not including product charges.
Thanks for reply dunstonh,i was first conntacted about 18 months ago by the Pru,a different lady came to see me,explained that the Pru was now doing free advice for its customers ( as you say the costs will be included somewhere they do charge an ongoing one off fee for managing the residue of my pension pot after commencment of drawdown ) but i did check she was bonafidi and not some sort of pension scam outfit.

dunstonh

Thanks for reply dunstonh,i was first conntacted about 18 months ago by the Pru,a different lady came to see me,explained that the Pru was now doing free advice for its customers ( as you say the costs will be included somewhere they do charge an ongoing one off fee for managing the residue of my pension pot after commencment of drawdown ) but i did check she was bonafidi and not some sort of pension scam outfit.

Advice is not free. However, when a company uses an agent for selling it's own product, it can factor it into the product charges. So, you pay for it within the product.

AnotherJoe

You do not need to, nor is it advisable, to be opening a new SIPP every year !!

Open one then you can put into it what you are allowed to and take out of it what you are allowed to. If you open one up, dump some money in and take it all out you'll (rightly IMO) get a big charge for all the admin you've caused them.

So, find a SIP provider, transfer the money, add in each year to the same SIPP what you are allowed to each year, and take out what works for you.

Ganga

Open one then you can put into it what you are allowed to and take out of it what you are allowed to. If you open one up, dump some money in and take it all out you'll (rightly IMO) get a big charge for all the admin you've caused them.

So, find a SIP provider, transfer the money, add in each year to the same SIPP what you are allowed to each year, and take out what works for you.

Thanks for info AnotherJoe,i can strart a new sipp for both my wife and myself and do what you say but here is another question,if the money we put in is savings and not earnings will we be taxed on it when we draw it out? as technically the original money has allready been taxed,

Ganga:beer: