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Pensions Pots - How much do you need?

Discussion in 'General Discussion' started by kingandy2nd, 7 Oct 2021.

  1. kingandy2nd

    kingandy2nd

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    Sorry to ask what may be a stupid, but I could just set up a SIPP with one of those companies and away I go?
     
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  3. JohnD

    JohnD

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    Yes

    For example I have one with Interactive Investor.

    I had to set up an Investment Account first, which costs £10 a month, and then the SIPP which costs another £9.99 I think. I also have an ISA which costs no extra.

    They offset the charges against the cost of Trades, so I rarely pay dealing fees.

    At one time they charged extra for pensions in drawdown, but have stopped now.

    They reclaim the 20% income tax on pension contributions from HMRC and add it to your pension account.

    I transferred in some small company pensions, and moved a cash ISA into the ISA. Transfers do not use up your annual allowance.
     
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  4. JohnD

    JohnD

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  5. JohnD

    JohnD

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    This one might be members only

    https://www.which.co.uk/money/inves...stment-platform-fees-and-charges-aqzb27v3lwsp

    Vanguard looks the cheapest as long as you only want funds, and are happy to be tied to only their own. It looks to me like they charge 0.15% p.a. for a SIPP but you had better check.

    A flat fee is better value for a larger account.

    https://www.ii.co.uk/acq/sipp-offer?gclid=EAIaIQobChMIz76y_6HH8wIVl853Ch1GIgyHEAAYASAAEgJzb_D_BwE

    If you paid in £10,000 a year for 40 years, and had good growth, a percentage fee would pay them a huge amount.

    Investment companies know that.

    "In a 2020 investigation, Which? found that the difference between the cheapest and most expensive drawdown plans for a £250,000 pot was a staggering £12,300 lost in charges over a 20 year period."

    Edit
    It looks like Vanguard also come top in the "Which" customer ratings.
     
    Last edited: 13 Oct 2021
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  6. Harry Bloomfield

    Harry Bloomfield

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    I have a 'Portfolio Bond' with Aviva, into which in Sept 2008 I invested £10K and just left untouched since then. It is now valued at £16,826.00 - I would be interested in opinion as to how people think that has done.
     
  7. motorbiking

    motorbiking

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    You probably had some bad years in there, but it’s barely managed 4%. Still better than any bank account.

    A ftse 250 tracker would have got you another 10k
     
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  8. JohnD

    JohnD

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    Did it have a Life Assurance element?

    It might have had mixed content. Shares, bonds, cash, property. Intended to be balanced (I.e. low) risk, and hence return.

    2007/8 had a big crash followed by a big recovery in 2009, so you might have got in at the bottom.

    You may have been hit badly by the pandemic, and had 5 years of Brexit damage. A 68% rise since 2008 is reasonable, not out of the ordinary. I know someone who has done about the same, but was up 140% in December 2019, before the pandemic crash. She had invested in what had previously been a stable and reliable investment trust. Though she will also have received dividend income. I see she gained 50% in the last 12 months, from a terrible low.
     
  9. mrrusty

    mrrusty

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    This^^

    TBH, your return is not great. Trackers are not zero risk, but you can't go far wrong over time. A few well chosen funds can beat the trackers, but in my experience, not by much.
     
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  11. Harry Bloomfield

    Harry Bloomfield

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    So far as I know, no - it is just an investment bond. I don't carry any life cover, I self insure.
     
  12. JohnD

    JohnD

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    Do you know the December 2019 value?
     
  13. Brigade77

    Brigade77

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    There are very good reasons why you not taught about £money at skool.

    At a relatively early stage in my working life I earned a **** load of money. I had many professional £money people chasing me with their best advice & yet the only one I remember was an old bloke in a pub in the deepest depths of the Derbyshire countryside, he was the only one who seemed to make sense to me.

    Pensions, & the provision of your income when you no longer choose to earn from your vocation of choice is a very important subject & should NOT be taken lightly.

    Diynot forum & especially JohnD (the Marxist revolutionary) isn't & should not be considered a font of knowledge in all matters pertaining to pensions & your sources of income when you reach an age that you are free of the term "wage slave".
     
  14. Harry Bloomfield

    Harry Bloomfield

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    No, I only get an annual statement of the value - Sept 2019 was Bond value on 24 September 2019 £15,814.01
     
  15. mrrusty

    mrrusty

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    This is true. However, advice is advice wherever it comes from, which you can choose to take or ignore. You might say that financial advice in a DIYnot forum isn't worth anything. However, it has one very significant benefit - the people here have no vested interest, so the advice is just personal experience. Anyone with a vested interest, whether fee or commission, is to some extent going to advise something that benefits them as well.
     
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  16. Harry Bloomfield

    Harry Bloomfield

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    It is worth as much as you have paid for it.
     
  17. JohnD

    JohnD

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    take care not to belleve anything brig says.


    MarksPennyBazaar.jpg
     
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