bosses son
Member
Thinking of starting a private pension for myself. Are there much difference between different types or firms? Dont have much knowlege yet. Also what sort of return is there?
Starting a pension
- Thread starter bosses son
- Start date
- Location
- south norfolk
Speak to a financial advisor.preferably one from your bank.in fact speak to a few as some will try and fleece you.
Nick...
Nick...
- Location
- Somerset UK
Start a SIPP, pick a FTSE100 share that pays a reasonable dividend, put in whatever you can afford each month, after 6 months pick another share. Do not start a pension in a big company, they will take 30-40% of your pension pot in charges over the years, plus the money they make from selling and buying, it's called 'churn'.
I use these people, there are others available
http://www.hl.co.uk/partners/search...lnyZs6xGRmNuX55qENYM_3zPQGenazYkaAj8cEALw_wcB
I use these people, there are others available
http://www.hl.co.uk/partners/search...lnyZs6xGRmNuX55qENYM_3zPQGenazYkaAj8cEALw_wcB
bosses son
Member
I am going to. But I want to know a little first. Because I hav'nt a lot of faith in specialists.
- Location
- East Sussex
Talk to the NFU Mutual, they have some very good products and charges are very low as they are a Mutual.
Take on as much risk as you are happy with.
I have had a number of with profits pensions with them and they have seen consistent growth some as high as above 8% year on year.
Do some research into the different funds and remember that every pound you put in a pension the government tops it up at basic rate tax.
The earlier you start the better and put as much in as you can afford.
Take on as much risk as you are happy with.
I have had a number of with profits pensions with them and they have seen consistent growth some as high as above 8% year on year.
Do some research into the different funds and remember that every pound you put in a pension the government tops it up at basic rate tax.
The earlier you start the better and put as much in as you can afford.
Nearly
Member
- Location
- North of York
Put money into something you can kick (or something that might kick you) rather than numbers on a piece of paper.
Pensions are only tax efficient if you're a 40% tax-payer, IME.
Pensions are only tax efficient if you're a 40% tax-payer, IME.
- Location
- East yorks
Be careful speaking to financial advisors from the bank. We have been fleeced a couple of times by the thieving scroats
grainboy
Member
- Location
- Bedfordshire
We use St James Place Financial management,
Secure, but you decide Risk level.
Secure, but you decide Risk level.
- Location
- Northern Ireland
Avoid banks. Waste of time and money. They are only sales agents. Bypass the middleman. Charges can be eyewatering and can cripple the returns.
Research tends to suggest that, over the longer term, active fund managers consistently fail to beat the broad market return, at a rate of about 90%.
As above, open a SIPP with HL or Youinvest. A typical handling charge is £25/quarter.
I wouldn't stick it all in FTSE 100. All eggs in one basket not the best, especially with Brexit. Buy american, Europe, UK and emerging markets ETFs. Keep it simple. One of each is plenty. Make sure they are accumulating rather than distributing, so that dividends are rolled over within, and not payed out. They are basically passive funds of every company in the stock index they are named after. You have broad market risk, not individual company risk. Look up iShares, DB X-trackers for ones that are listed in London. Fund your SIPP account, pick your funds and buy them. Done.
One brilliant thing is in a once in a decade market meltdown, you can exit your funds at the touch of a button, going to cash or bonds or a gold fund if you wish, which pension providers just don't do. They take the whole hit.
As above, also use some SJP here for historic reasons, and in order to spread risk and varying performances.
Research tends to suggest that, over the longer term, active fund managers consistently fail to beat the broad market return, at a rate of about 90%.
As above, open a SIPP with HL or Youinvest. A typical handling charge is £25/quarter.
I wouldn't stick it all in FTSE 100. All eggs in one basket not the best, especially with Brexit. Buy american, Europe, UK and emerging markets ETFs. Keep it simple. One of each is plenty. Make sure they are accumulating rather than distributing, so that dividends are rolled over within, and not payed out. They are basically passive funds of every company in the stock index they are named after. You have broad market risk, not individual company risk. Look up iShares, DB X-trackers for ones that are listed in London. Fund your SIPP account, pick your funds and buy them. Done.
One brilliant thing is in a once in a decade market meltdown, you can exit your funds at the touch of a button, going to cash or bonds or a gold fund if you wish, which pension providers just don't do. They take the whole hit.
As above, also use some SJP here for historic reasons, and in order to spread risk and varying performances.
Netherfield
Member
- Location
- West Yorkshire
Nearly
Member
- Location
- North of York
No.Does this include horses
Netherfield
Member
- Location
- West Yorkshire
I used to buy ice cream for the farm shop from an Italian chap in Cheshire, his pension fund owned the premises they worked out of, of course the ice cream business has better years when the summer is good, so the rent paid was some way adjusted by how much profit was made each year. He kept trying to get me/us to put the land into the same idea and then the business pay rent to the pension fund, I could never get him to understand how little would be in the fund if that happened. Pino was a very nice man and just before he retired he showed me his pension fund had almost £4 million in it, his wife had the same as well. If only agriculture made the profits needed to make that happen.
Farmer T
Member
- Location
- East Midlands
Hargreaves Lansdown give you the choice where to put your money and a good online platform. Very easy to set up.
They are in the FTSE 100 so should hopefully be there by time I need it!
They are in the FTSE 100 so should hopefully be there by time I need it!
Some ? I'd say all
- Location
- Northern Ireland
An £8M pension fund. Good golly.
So, question for you all.
What do you aim for as a minimum annual income from a private pension when you retire? Just use today's pound value. What age do you think you'll take it? Will you have saved enough to be able to live independent of farm income from your offsprings labour, or from rent out of unused land?
I'll take a stab at it. From observation, i reckon mum and dad need in the region of 25k for a comfortable retirement. That includes simple dining out, which they do a fair bit of. Own home fully paid. Holidays would be on top, as would extravagant spending. Mind you, they arent the type for that anyway.
Consumption naturally gets less as you get older, so let's aim for say the first ten years from 65-75.
So, question for you all.
What do you aim for as a minimum annual income from a private pension when you retire? Just use today's pound value. What age do you think you'll take it? Will you have saved enough to be able to live independent of farm income from your offsprings labour, or from rent out of unused land?
I'll take a stab at it. From observation, i reckon mum and dad need in the region of 25k for a comfortable retirement. That includes simple dining out, which they do a fair bit of. Own home fully paid. Holidays would be on top, as would extravagant spending. Mind you, they arent the type for that anyway.
Consumption naturally gets less as you get older, so let's aim for say the first ten years from 65-75.
Timmy_45
Member
I have a low cost private pension ( SIPP ) with AJ Bell. I go for high yielding blue chip stocks, current overall yield is 5.97% on the portfolio. Reinvesting the dividends over the next 20 years should give me a portfolio with a dividend income in the region of £28k. On top of that we rent out a barn conversion, and don't forget there's the state pension too. Should all add up to a bit over £50k a year to retire on, which will do for me and the missus.
corkman2013
Member
- Location
- co.cork
May I ask what you put in per annum at the moment,
multi power
Member
- Location
- pembrokeshire
Timmy_45
Member
Nothing. I just reinvest the dividends. Having said that I started it off with a £120k lump sum, then did some buying and selling which has nudged the capital up to £145k.
- Location
- Northern Ireland
Thanks for that Timmy. That's a really high average yield.
Your sums all work out nicely there for me, so I must be doing it right.. I get a pot of 456k, without including any actual share capital appreciation so to speak, and a yield of 5.97 comes to near 28k, without touching the capital in the pot.
Small question though. When I ran 28k through my inflation calculator, it seems 28k in 20 years will be worth 17k in today's money at an average inflation of 2.5%, and about 15.5k at 3%.
State pension is a big unknown for me. Will they pay it out to those who have saved, in 20 years time?
Your sums all work out nicely there for me, so I must be doing it right.
. I get a pot of 456k, without including any actual share capital appreciation so to speak, and a yield of 5.97 comes to near 28k, without touching the capital in the pot. Small question though. When I ran 28k through my inflation calculator, it seems 28k in 20 years will be worth 17k in today's money at an average inflation of 2.5%, and about 15.5k at 3%.
State pension is a big unknown for me. Will they pay it out to those who have saved, in 20 years time?