General Pension waffle
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I invest in a VLS 80 separately in a s&s isa so was looking for something different. Although the vls is global it's also highly weighted to the uk (in my uneducated eyes).
I'm still keen on global trackers but can't pretend on not looking at Fundsmith and Lindsll Train global equity funds.
Whichever way I go , I think the main fund will be truely.
The platform is causing more of a headache. I mentioned Vanguard because I find it easy to follow their charges , I'm struggling with HL, AJ Bell etc.
HL looks good for me on the face of it , a higher annual fee but the other fees seem more than fair. The problem is I put my position into the this is money calculator and it churns out some wild figures.
£115k lump
£1000 a month invested for 20 years
Total cost (today's rates) £20k odd.
Others are coming in at around £3k-£5k but I'm not sure exactly where the difference is coming from.
I'm in no rush so will take time to get my head around this.0 -
The high fee total for hl is because of their high annual fee on a percentage basis. Times it by 20 and factor in the increase in value of the fund and it’s easy to see why it grows. Good for small pots as no trading fees but gets bad quickly.
The low total fees are probably for those that have capped or no annual fees.
Hl tend to be good for setting things up as their staff are knowledgable and easy to contact and they will email documents. Worth maybe pursuing for the initial transfer then moving elsewhere later?
Also depends on whether you expect to contribute more to this - I tend to open new SIPPs with different platforms - it’s useful if you end up in a regulated industry for a time.
Weighted to UK? Globally should be weighted to USA - which would you prefer.
There are a number of spreadsheets around that show charges for various platforms. There’s a pretty good one linked from this site somewhere.
I was going to suggest you take advice and split your pot into two - one to invest following advice and the other as you think, then you can compare. But you have an ISA which will do that for you.
I wouldn’t go for the IFA apart from maybe the initial advice - the ongoing charges may not get you much apart from a document summarised as “don’t do anything”. It might be useful down the line as your situation changes but would be worth asking what might incur further charges.0 -
Update.
I believe I have chosen the platform that I wish to use. Fidelity may not have the cheapest ongoing charge (0.35 changing to 0.2 after £250k) andthe website might be a little clunky to use but the fees to join, trade funds and exit are free which is important to me.
My current uk all company tracker with ReAssure is costing me 1% a year and I don't need an IFA to tell me that the same fund costing less than a total of 0.5% elsewhere would be more sensible. I also strongly believe that a global tracker will be better going forward. For that reason I am not going to pay for an IFA.
I know what I want to invest in, it's just how I make up that portfolio.
Option 1. Vanguard global all cap. The fund covers larger and smaller companies and is global as the name suggests. It also holds some emerging markets which some global trackers neglect. This would be a 1 fund portfolio of Fire and forget. I would explore less equities as I near retirement.
Option 2.
A global tracker fund ex uk (most neglect emerging)
An emerging markets tracker fund.
A 2 fund portfolio that I will add uk exposure to following Brexit to make a 3 fund portfolio or consolidate into the above 1 All Cap fund.
I appreciate any input on my decision.0 -
Suggest HSBC Global Dynamic OCF 0.19% with AJ Bell Youinvest sipp 0.25%0
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Stupid question.
Would it be easier to set up a new SIPP so I can contribute through salary sacrifice and my employer can contribute from day 1. Then transfer my original pension into the new sipp.
Or
Just go for the transfer straight away as a way of opening the sipp.
Going for the transfer route leaves me in limbo for what looks like weeks so the first option is a no brainier isn't it?0 -
will your employer sal sac into a SIPP?I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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All views are my own and not the official line of MoneySavingExpert.0 -
will your employer sal sac into a SIPP?
Yes, although strictly speaking I am the employer as one of the directors.
I have spoken to fidelity and they recommend opening it as a transfer but by post rather than online. The forms you can print have space for personal and company info direct debit etc.
As I will be salary sacrificed I will not complete the personal direct debit part and just total up my contribution and that of the business and put that total as a direct debit from the business.0 -
As a director, surely you are paying the pension by company contributions? So no sAl sacrifice?
No NI though anyway.0 -
As a director, surely you are paying the pension by company contributions? So no sAl sacrifice?
No NI though anyway.
As a non dividend taking director with an agreed company pension contribution, it's better for me personally to then add my contribution through PAYE. Paying the total from the company and paying me less (salary minus what would have been my contribution) would be beneficial for the business and the 2 dividend taking directors but not me.0
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