Wise choices?

oofazi

enthusiasticsaver wrote: »

I would stick with the approach you have already started. VLS80 or some other multi asset fund and invest within a SIPP or even explore additional payments into your works pension to maximise tax advantages on the way in.

Thank you. Your point to continue with a VLS product/ or other MA fund (be that ISA wrapped or not) seems to be the consensus. I am unable to contribute more into the work pension and will be healthy on retirement - so anything I am trying to garner advice to engage, is strictly from salary input/ contributions for further VLS80 contributions/ SIPP.

How soon does the Govt. make its contributions on a SIPP, is it from the first payment/ personal contribution or at the end of the year - it clearly has compounding benefits the sooner its placed in the same SIPP contributing account.

I have also learned that having ETFs in an ISA is the most beneficial (from a tax perspective) way to start investing in them. Is that correct?

Index trackers on the other hand can be in both but as they are cheap and don't attract higher charges (CGT et al), can be had/ invested in outside of the tax wrapper.... Is that correct?

Albeit we all wish it could be all be tax free, I understand.

AlanP_2

Your pension provider will reclaim BR tax for you from HMRC and credit it to your account.

Our SIPP with Fidelity takes about 8 weeks to show the credit, others may be quicker or slower.

Putting your investments in a " tax wrapper", so Pension or ISA, has benefits irrespective of whether they are ETFs or Funds.

Comparing Trackers to ETFs is like comparing fruit to apples. A Tracker can be structured as an ETF or a Fund, as can an active investment vehicle.

Clive_Woody

oofazi wrote: »

Thank you. Your point to continue with a VLS product/ or other MA fund (be that ISA wrapped or not) seems to be the consensus. I am unable to contribute more into the work pension and will be healthy on retirement - so anything I am trying to garner advice to engage, is strictly from salary input/ contributions for further VLS80 contributions/ SIPP.

Is that because you are hitting the £40k/annum limit or the scheme rules?

The reason I ask is that SIPP contributions would also count towards that annual limit.

I max out my pension contributions and have a standing order paying monthly, directly into a VLS80 fund in an ISA (held with Vanguard). I occasionally have a look how it's doing but mostly leave it alone to do what it's meant to do (grow). As mentioned there are alternatives to VG that you could consider.

oofazi

Clive_Woody wrote: »

Is that because you are hitting the £40k/annum limit or the scheme rules?

The reason I ask is that SIPP contributions would also count towards that annual limit.

I max out my pension contributions and have a standing order paying monthly, directly into a VLS80 fund in an ISA (held with Vanguard). I occasionally have a look how it's doing but mostly leave it alone to do what it's meant to do (grow). As mentioned there are alternatives to VG that you could consider.

I will hit the 40k limit but not yet, I am reduced in my salary from bonds that are now visible (if only they were ISAs *sigh) by HMRC and all interest taxed at 40%...the cash is locked in for another 2 years (both mature Sep 2021) & the amount of annual interest is taken as income, (even though I cannot get the money moved out to another location), my take home salary is reduced as its classed as income and my tax code is adjusted to compensate....I am down about £600 pcm...... quite a drag.
I can commit more from now to a SIPP, do you think this is wise?