The BEST SIPP ?

EdInvestor

Gatser wrote: »

Yes, for others I know...:( ....but not for me.
Std Life confirm that I cannot transfer my Prot Rights in isolation from my With Profits funds (both are within one GPPP) without incurring the wrath of a 25% MVA (Ouch)....you probably remember me mentioning this some months ago. Sad but VERY true. I just have to sit tight for 10 years!

While a 25% loss is hard to bear, what is the anticipated growth rate of your bit of the SL WP fund? Over a 10 year period, you may be better to take the hit and then reinvest in better quality products which would outperform.It might not take long to clear the loss.

However... I will start to have PR paid into my "NEW" SIPP as soon as they accept PR rebates.

Way to go.

BTW, what happens after 2012 when these rebates are abolished?
Are we all forced back into SERPS?

Yes.It's now called S2P, BTW. And another thing - in 2012 the Govt will also abolish the requirement to buy a 50% spouse's annuity with PR money.At that point there will be no difference between PR and non PR funds and they won't need to be kept separate.

2012 is shaping up to be the next Big Bang pension rule change year. :rolleyes:

whiteflag_3

Gatser wrote: »

Is there a website that compares all the (online) features and functionality of the different SIPP's on offer, and a practical comparison of costs?

I say practical because some SIPPs quote "£10 per pension payment"... I assume this means they charge £10 every time you drawdown YOUR pension money. (What a cheek!) Imagine the fuss if banks charged £10 every time you withdrew YOUR money!

Need to decide WHICH SIPP to go for.... and try to avoid a costly mistake.
Thanks

Why not ask "which is the best bucket with a hole in it?"

You wouldnt want a bucket with a hole in it so why the dickens would you want a SIPP?

Its a self fullfilling prophecy- the very fact that you cant even work out which is the best SIPP demonstrates a a SIPP is not for you!

Is it a fancy "wrapper" or financial independence you desire?

The day you stop work, is the fact you have the "best" SIPP going to let you live the life you want to live? Of course its not. What you need to do is stop worrying about "wrappers" and work out how much you are going to need to live your desired lifestyle and start planning accordingly.

Whats the point of having a fancy box if its empty?

Gatser

EdInvestor wrote: »

While a 25% loss is hard to bear, what is the anticipated growth rate of your bit of the SL WP fund? Over a 10 year period, you may be better to take the hit and then reinvest in better quality products which would outperform.It might not take long to clear the loss.

Thanks Ed.
This is something I have considered.
The WP has a 4% guarantee... some IFAs have suggested I treat it as a "safe/cash" fund. I have played around with spreadsheets into the early hours on this one!

Another thought though...(Is this crazy?)... I could take the 25% TFC this year (at 50), and an annuity which would give me c.6% of the balance pa. (therefore not suffer the MVA). This seems to work out favourable to leaving it at 4% growth pa for the next 10 years, then taking TFC & Drawdown.
(Especially when using the NPV of the cashflows!)

I think another point to this is that it will only represent about 33% of my pension funds... so spreading the risk.:undecided

Gatser

EdInvestor wrote: »

Yes.It's now called S2P, BTW. And another thing - in 2012 the Govt will also abolish the requirement to buy a 50% spouse's annuity with PR money.At that point there will be no difference between PR and non PR funds and they won't need to be kept separate.

2012 is shaping up to be the next Big Bang pension rule change year. :rolleyes:

Interesting...
So, (in 2012...) can we use PR money to get the TFC and Drawdown at age 55? I thought we still had to wait until 65 to get a pension from PR monies. :rolleyes: This may add another factor to my WP decision! .....

Gatser

whiteflag wrote: »

Why not ask "which is the best bucket with a hole in it?" You wouldnt want a bucket with a hole in it so why the dickens would you want a SIPP?

So you do not like SIPP's then ? :rotfl:

whiteflag wrote: »

Its a self fullfilling prophecy- the very fact that you cant even work out which is the best SIPP demonstrates a a SIPP is not for you!

I do not understand your logic... I am asking questions to get knowledge in order to make (hopefully) a wise decision based on other experiences.
If I asked you your opinion on which is the best car, would you say "Cars are not for you mate?"

whiteflag wrote: »

The day you stop work, is the fact you have the "best" SIPP going to let you live the life you want to live? Of course its not.

I beg to differ: Whilst the amount in the SIPP is important, so are its charges and functionality...to make my life easier.

whiteflag wrote: »

What you need to do is stop worrying about "wrappers" and work out how much you are going to need to live your desired lifestyle and start planning accordingly.

Who is worrying?
I KNOW how much I need thank you.... I am now trying to decide where I put it! :T

whiteflag_3

[quote=Gatser;

11596299]So you do not like SIPP's then ? :rotfl:

Correct. :j

I do not understand your logic... I am asking questions to get knowledge in order to make (hopefully) a wise decision based on other experiences.
If I asked you your opinion on which is the best car, would you say "Cars are not for you mate?"

No! First I would find out if you could drive then presumably as you like the DIY route, it would be a kit car you would be buying so I might ask about your mechanical knowledge. I would also ask you how often and how far you are going to go in your kit car, because if you are only making one journey you might be better to take the bus and sit back while someone else does the driving.

I beg to differ: Whilst the amount in the SIPP is important, so are its charges and functionality...to make my life easier.

Yes but you get all that with Personal Pensions, so why a SIPP?

Who is worrying?
I KNOW how much I need thank you.... I am now trying to decide where I put it!

[/quote]:T
Thats good

So what rate of return do you need to achieve your goals?

dunstonh

There you go then. Two fee based IFAs that think SIPPs are overrated.

I think the problem here is though that Gatser wants to do DIY and not use an IFA and the DIY options are mainly SIPPs. No suprise when you see the commission generated to the likes of HL on their SIPP.

The SIPP isnt fully appropriate because it cannot take protected rights though alternative products exist that do. The SIPP is not the cheapest option and the ones mentioned are not the best. However, they are generally the best on the DIY route.

EdInvestor

Gatser wrote: »

Thanks Ed.
This is something I have considered.
The WP has a 4% guarantee... some IFAs have suggested I treat it as a "safe/cash" fund.

Yes, that's a possible approach.

I could take the 25% TFC this year (at 50), and an annuity which would give me c.6% of the balance pa. (therefore not suffer the MVA).

Yes you could do that.You can take benefits from PR money at the same time as non-PR money now (ie age 50).Would you then reinvest that annuity money - in your ISA perhaps so it's outside the tax net?Would taking the extra income now have any bad tax effects?

Gatser

whiteflag wrote: »

Yes but you get all that with Personal Pensions, so why a SIPP?

I would certainly consider a Personal pension if there is one that can:
- allow me to invest in (say) 50 unit trust funds from a selection of 300
- allow me to invest in Gilts
- provide online access
- provide drawdown facilities

Do they exist?
If not, what am I asking for that is the problem?

Gatser

whiteflag wrote: »

Thats good

So what rate of return do you need to achieve your goals?

I have assumed 4% growth... not too ambitious.
(unless someone thinks otherwise...)