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Quick (hopefully) sanity check regards my daughters pension.

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Just received a text from my 25 year old self employed daughter. Hi dad, I think UR (text speak down with the kids me) right I should get a pension. I suspect it is her partner, who works as an auditor in a bank, who has actually persuaded her. But anyway hurrah, I am really chuffed. I guess it will now be about persuading her that about 20 quid per month isn't enough!! 

Anyway investing really isn't my thing, don't really get it and it bores me senseless. But I have had a mooch round on Tinternet and it looks to me like a Vanguard 100% equities fund might be a decent low cost suggestion. I suspect many of you would probably do something different but does that seem reasonable?      

Comments

  • Marcon
    Marcon Posts: 14,511 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Opening a pension (pretty much any pension!) and actually pay into it beats doing nothing any day...

    On the basis that a parent's place is in the wrong, I'd lay off actually suggesting a particular fund (let her partner take the rap for that!). Perhaps refer her to something more generic - https://www.moneysavingexpert.com/savings/cheap-sipps/
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • bolwin1
    bolwin1 Posts: 279 Forumite
    Eighth Anniversary 100 Posts Name Dropper
    You're thinking along the right lines - in my (unqualified) opinion 100% equity in a tracker fund is the most sensible approach for someone of your daughters age.
    There are quite a few Vanguard 100% equity funds - the most popular one is the lifestrategy fund, which is perfectly fine, but it does have a UK bias (not necessarily a bad thing, but you'll need to consider whether the UK stock market will outperform the rest of the world on average). 
    Most of my pension is in HSBC FTSE All-World Index C, which is 100% equities & attempts to track the whole world stock market. 
    Both the HSBC & Vanguard funds are low cost trackers. There are other trackers out there, but either of the ones mentioned would be perfectly acceptable for your daughter. 
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