is putting funds into an drawdown worth it

AnotherJoe

Fife59 said:

I thought if your pension pot was over £30k you needed to have a IFA before you could draw it down ? 

Nope. Ive drawn down from two both worth considerably more. as said youve got confused about when advice is needed.

AnotherJoe

Fife59 said:

anyway I have some extra cash from my wages which I am putting into my vanguard SIPP 2030 and 20% blended. However ,when looking at SPPA site they are saying NHS have preferential deals with standard life and prudential . So I wondered 

• should I move my vanguard sipp to them 

• should i keep vanguard and open standard life or prudential

This called (sort of) letting the tax tail wag the dog. Or in your case, the management charges tail.

Whats important is what's in the pension, more so than the charges. Once youve got the right investments in your pension then you can worry about charges.

I dont know whats in "vanguard SIPP 2030 and 20% blended" i suspect ist something that moves towards cash as you get to 2030 which may or may not be what you need. If it is what you need,  do you know that SL or Pru have the same?

xylophone

OP, do you mean that you would make AVCs through Prudential or Standard Life?

https://www.pru.co.uk/pdf/AVCK0433.pdf

https://www.standardlifepensions.com/nhs/common-questions
https://library.standardlife.com/gavc17.pdf

Fife59

xylophone said:

OP, do you mean that you would make AVCs through Prudential or Standard Life?

https://www.pru.co.uk/pdf/AVCK0433.pdf

https://www.standardlifepensions.com/nhs/common-questions
https://library.standardlife.com/gavc17.pdf

Yes thats exactly it , apologies for the poor explanation and thank you so much for your help

trying to compare PRU, standard life costs and funds with the vanguard funds I have started already  is giving me a sore head

they dont make it easy to choose and its a big decision. I do know I want low  risk , I know its at the expense of lower returns but this is money I will never have again to invest and although there is of course risk with any investment I want to reduce it as much as I can

  

dunstonh

trying to compare PRU, standard life costs and funds with the vanguard funds I have started already  is giving me a sore head

Should be relatively straightforward as they are all annual charge only.   Platform, fund OCF, TC & IC with Vanguard vs Pru AMC or Std Life AMC. 

You should not let charges be your primary driver. It is a secondary consideration.

Fife59

dunstonh said:

trying to compare PRU, standard life costs and funds with the vanguard funds I have started already  is giving me a sore head

Should be relatively straightforward as they are all annual charge only.   Platform, fund OCF, TC & IC with Vanguard vs Pru AMC or Std Life AMC. 

You should not let charges be your primary driver. It is a secondary consideration.

Your absolutely correct about the charges

I am away to look at all the stuff and come back no doubt cheers

Albermarle

. I do know I want low  risk , I know its at the expense of lower returns but this is money I will never have again to invest and although there is of course risk with any investment I want to reduce it as much as I can

Well to take that to its extreme , some people hold their pension pot in cash , which is zero risk. Even though cash held within a pension earns zero , so even worse than just a normal cash savings account . However there is still a risk, which is the certainty your money will slowly lose value due to inflation.

The next level up is so called cautious funds , but keeping up with inflation is about the best you can expect from these.

Really to make the investing worthwhile you need to move up at least one more level , sometimes known as conservative investing , where you are at least aiming/hoping for a small % growth above inflation , whilst only taking a moderate risk. Typically these will have approx. 30 to 40% equities( shares ). Many posters on here would say that is still too cautious especially if you are not even retired yet but you have to go with what you are comfortable with . Though as one saying goes ' taking no risks is the biggest risk of all ' 

MarkCarnage

Though as one saying goes ' taking no risks is the biggest risk of all ' 

Reckless conservatism as it's otherwise known. Though there's plenty of that going around in other circles.....