Investment for a Vanguard Sipp?

bowlhead99

Albermarle said:

Alistair31 said:

Thanks both. 

Not worth the hassle for me (explaining/setting up) or them I think as they both pay tax on their income as it is before the state pension becomes payable. 

Maybe if you are saying that £180 free money is not worth it , then you might get banned from the forum 

To be honest if the parents are not particularly savvy it can be a bit of a faff if you are going to need to hand-hold them through every step of the process.

While my mum is deferring her state pension it's well worth it for her with the >£700 free money per year. Whereas for Dad who was a taxpayer and much closer to age 75 when I suggested it, so wouldn't get many years out of the £180 per year 'trick', we didn't bother. He still hasn't got around to moving their ISAs away from HL to save a couple of hundred pounds of fees a year, so I'm not going to demand we create more work for the both of us for a non life-changing amount of money. I'll just spend my time instead on people here who really want or need the help!

Albermarle

In fact I agree with you . I think the law of diminishing returns vs effort comes into play at some point . Although there are plenty of other posters who seem happy to keep opening and closing accounts to get £20 cashback , which needs chasing up ten times before it arrives. Each to their own !

Alexland

Albermarle said:

In fact I agree with you . I think the law of diminishing returns vs effort comes into play at some point . Although there are plenty of other posters who seem happy to keep opening and closing accounts to get £20 cashback , which needs chasing up ten times before it arrives.

I am one of those happy to open investment accounts for modest amounts of cashback (preferably £100+) if the product is fairly good and I need that sort of account anyway. Sometimes it saves even more by avoiding trading fees in my larger static accounts. I also find it interesting to build up further experience of different financial service products. However for £180 pa then I wouldn't give my parents the complexity of running an additional pension but if they already had a DC plan that they could recycle into that might be a quick win. Still if they never need to draw it and die before age 75 then the £720 is back on the table as a tax free gain for the beneficiaries.