Just for fun, to have a go or leave to an active passive fund.

Albermarle

ruthshaw2206 said:

Albermarle

The tip with HL is to avoid any own brand HL multi manager funds they promote, as they are very expensive 

Do you mean the ones on their wealth shortlist,  I have taken that with a pinch of salt. I did consider putting a bit of it, maybe the few hundred into the l&g future world ESG developed index just to ease my ethical quest. 

Can’t do much harm I guess and was one of the cheaper ethical ones. 

No I meant these https://www.hl.co.uk/funds/hl-funds/multi-manager-funds

ruthshaw2206

@Albermarle

Ah no I wouldn’t be bothering with those. 

I’ve split between vls80 and HSBC global simply to even out the UK weighting in VLS80. 

I’ll keep adding what I can and the hope is to even build up enough that the 25% lump sum would allow me to retire 1 or 2 years before state pension kicks in. We don’t earn enough to put away enough to make a real impact on a monthly basis but the thought of not retiring until 68 isn’t an awesome thought. 

I overpay my mortgage with the plan to pay off at 50 rather then 57 when it’s up but I do wonder now would it be better putting those overpayments in the sipp and then if may add up to enough to take another year or so off retirement age. 

Mind you who knows what state the world will be in by then. 🤦🏻‍♀️

Alexland

The HL app is very good and I found you don't need to be a customer to use it's watch list functionality to keep track of your investments across all your non HL accounts. As such at 0.45% you are paying around 3x more than it would cost to have your SIPP on Vanguard Investor at 0.15% if you are happy with their more limited but generally adequate investment options such as a 2 fund portfolio of a global equities and bond fund (to avoid UK bias in VLS series). Although not an app Vanguard's website renders nicely on mobile and you can always add a shortcut to your home screen.
Is there any particular reason you would still contribute to the SIPP when a S&S Lifetime ISA would provide the same initial 25% uplift but with none of it taxed as income on withdrawal in your 60s?
Alex

ruthshaw2206

Alexland said

Is there any particular reason you would still contribute to the SIPP when a S&S Lifetime ISA would provide the same initial 25% uplift but with none of it taxed as income on withdrawal in your 60s?
Alex

Hi Alex, although I don’t know what it is, a previous comment on here said that there is a tax advantage on the SIPP rather than S&S ISA? It’s too complicated for me to understand 🤦🏻‍♀️. 

I am a taxpayer but don’t actually earn over the tax feee allowance but I think I still get the uplift with a SIPP, is it the same with a S&S ISA or do you have to be actually paying tax? In that case it would be better for hubby to set one up. 

I am considering an ISA with vanguard if I do go that option. I just think it took 3 odd years to transfer this SIPP from one doing nothing in cash and getting admin charges deducted quarterly to H that let’s be fair it would take while to get round to moving it again lol. 

ruthshaw2206

Sorry I just realised you meant a lifetime ISA, read it too quickly. And I see Vanguard doesn’t offer this. 🤦🏻‍♀️

Alexland

I agree the investment wrapper and platform market is more complicated than it needs to be but a S&S Lifetime ISA is different to a vanilla S&S ISA in that provided you open the account before your 40th birthday the government allow you to contribute up to £4k per tax year (out of your overall £20k per tax year ISA allowance) into a LISA for a 25% bonus of up to £1k and you can do this until your 50th birthday and then withdraw from age 60 without paying any income tax. This compares to a SIPP where you would get the same initial 25% uplift but at withdrawal only 25% would be tax free and the other 75% could be taxed as income depending on what other income you have in that tax year such as other pensions using up your annual personal allowance.

notyourrealname

justcheckin said:

If you feel that your NHS and state pensions will be adequate for your retirement income (and you won't breach the LTA), then one thing you could do is to use (some of) the SIPP as a 25% uplift savings plan for the children's uni fees etc? From your age, and the age of your youngest, your ability to draw 25% tax free at age 57, and it having had 25% added to it by HMRC at first input, would be quite hard to beat elsewhere.

Just a thought. It's what we are doing anyway. Also have 4 kids, littlest age 6. Basically we are using my husbands carry forward to stuff as much into SIPPs as possible, to give some to the children for uni etc.

Apologies for derailing the thread but what fees? Are you planning on them going to Uni abroad? In Scotland there are no fees at all, England and Wales fees are paid direct by the government so there are no upfront fees to the student. Do you mean living and accomodation costs? 

ruthshaw2206

I live in Northern Ireland, I honestly don’t even know what the fees are here it’s a long time since I was in uni where I went to Scotland and had to pay fees for 3 of the 4 years. On a completely other note it’s not something I will be actively encouraging anyway. As someone who was told they must go to uni and having done a law degree, masters in corporate governance and public policy then burnt out 2 years in to a fully funded PHD and now work part time in Admin, I’ll only encourage uni if and when they know what they want, and if they have a clear path. My kids are so different I already can see uni not being the right path for them all. 

Slight digression from post.....🤦🏻‍♀️🤦🏻‍♀️