Stocks n Shares ISA

[houghton cut head]

There are still couple IFAs who
Post in here, I think

Not sure if there are any independent ones, one or to I messaged were still linked to a provider, could be wrong though

Just read an article where someone’s pension has dropped a third in the last 2 years because of lifestyling

Moved mine out of a Lifestyle fund to a North American Equity fund 2 years ago ( hoping to retire in the Summer) and the Lifestyle fund is about 12% behind my current fund after 2 years. Mortgage was paid of last month so upped my pension contribution by a canny chunk to take me out of the 40% tax bracket all together

 

[timeforheroes1]

The person I’ve been speaking to has said that SJP won’t charge more than my current pension provider does. I seem to recall they may have even said this is a fairly new approach ?!? They also said no fee to transfer but a tapered early exit fee over five years if you leave ie 5% year one down to 1% in year five.

SJP managed portfolio is about 1.96 per annum and net average annual return since it was launched over 8 percent. Pretty
Good going for a medium risk fund and no initial charges if it’s a pension like you say

 

[safccfas]

SJP managed portfolio is about 1.96 per annum and net average annual return since it was launched over 8 percent. Pretty
Good going for a medium risk fund and no initial charges if it’s a pension like you say

The fund I’ve been recommended/ interested in is the upper medium risk as I’ve still got a good 10/15 years until retirement. SJP state that their targeted return is 8% on this fund. I’m wondering, like with most things in life, the negatives are quite vocal over the positives. I’m doing more and more reading and it seems there’s negative stories for all the major funds. SJP do have a lot of negative reviews but then they are one of the biggest so percentage wise it may not be that bad. There’s just so much info out there these days it’s all a bit overwhelming.
SJP seem to have changed their charging structure which was one of their biggest issues it seems. But if I’m being told they won’t charge more than my current pension provider then that seems to be one issue that I won’t have.

 

[42]

The fund I’ve been recommended/ interested in is the upper medium risk as I’ve still got a good 10/15 years until retirement. SJP state that their targeted return is 8% on this fund. I’m wondering, like with most things in life, the negatives are quite vocal over the positives. I’m doing more and more reading and it seems there’s negative stories for all the major funds. SJP do have a lot of negative reviews but then they are one of the biggest so percentage wise it may not be that bad. There’s just so much info out there these days it’s all a bit overwhelming.
SJP seem to have changed their charging structure which was one of their biggest issues it seems. But if I’m being told they won’t charge more than my current pension provider then that seems to be one issue that I won’t have.

What's you current provider charge though?

Think its something like 95% of passive index funds out perform active managed funds. Over the last few years 8% average isn't great either. Nigh on 2% fee is a rip off when Vanguard are charging 0.35%

 

[Darlo1973]

Moved mine out of a Lifestyle fund to a North American Equity fund 2 years ago ( hoping to retire in the Summer) and the Lifestyle fund is about 12% behind my current fund after 2 years. Mortgage was paid of last month so upped my pension contribution by a canny chunk to take me out of the 40% tax bracket all together

The biggest holding in my S&S ISA is a NA Equity fund which has been on fire over the last 3 months though the earlier parts of 2023 weren't so good so it's only up 8% over the last 12 months. I then have a few smaller funds for some global and sector diversity.

My work pension is based around the Vanguard 80% fund but without the automatic lifestyling as I prefer to control the fund myself. Amazing how many people just take the default fund in their work pension without questioning it.

 

[Fletch]

The biggest holding in my S&S ISA is a NA Equity fund which has been on fire over the last 3 months though the earlier parts of 2023 weren't so good so it's only up 8% over the last 12 months. I then have a few smaller funds for some global and sector diversity.

My work pension is based around the Vanguard 80% fund but without the automatic lifestyling as I prefer to control the fund myself. Amazing how many people just take the default fund in their work pension without questioning it.

To be fair 90% or more of workers won’t have a clue what their works pension is invested in, just pay into it and assume it’s a good one

 

[The Great Soprendo]

What's you current provider charge though?

Think its something like 95% of passive index funds out perform active managed funds. Over the last few years 8% average isn't great either. Nigh on 2% fee is a rip off when Vanguard are charging 0.35%

Is that 0.35% the total fee? Nothing added by the fund manager/extras in the small print? It seems very low compared to others. Is the catch simply that you have limited choice and have to take one of their funds? I might still look at moving some there though, even if the case.

 

[42]

Is that 0.35% the total fee? Nothing added by the fund manager/extras in the small print? It seems very low compared to others. Is the catch simply that you have limited choice and have to take one of their funds? I might still look at moving some there though, even if the case.

Aye. 0.15% platform fee & 0.2% (average) investment fee.

Vanguard are the cheapest by far, but yes the catch is that you only have their own funds. But tbf, most diversified global trackers will give you a very similar return anyway.

 

[Matt Hopkins]

Is that 0.35% the total fee? Nothing added by the fund manager/extras in the small print? It seems very low compared to others. Is the catch simply that you have limited choice and have to take one of their funds? I might still look at moving some there though, even if the case.

SIPP account fee for the regular SIPP is 0.15% capped at £375 then the OCF on top usually around 0.23% depending on what fund you chose
Aye what @42 said

 

[Darlo1973]

To be fair 90% or more of workers won’t have a clue what their works pension is invested in, just pay into it and assume it’s a good one

Probably true. We changed our work pension provider a few years back following an acquisition. When I checked the default fund was really expensive and low performance (clearly chosen to earn the company's administrators a good commission) so I switched it to Vanguard 80. I mentioned this to a few people and they just shrugged.

 

[42]

Probably true. We changed our work pension provider a few years back following an acquisition. When I checked the default fund was really expensive and low performance (clearly chosen to earn the company's administrators a good commission) so I switched it to Vanguard 80. I mentioned this to a few people and they just shrugged.

I think most don't really understand then beyond they pay a bit each month & get something when they retire.

 

[The Great Soprendo]

Thanks @42 and @Matt Hopkins . I have some money with HL which charges quite a bit more, though has no trading fee for funds and access to thousands of options. Maybe for part of it that I want as an index tracker it makes sense to move or set up a new one with Vanguard. As you say they will be much of a muchness otherwise, but fees can really eat into the gains (or losses). Then maybe keep HL for some more adventurous options. A job for the new financial year perhaps.

 

[Fletch]

I think most don't really understand then beyond they pay a bit each month & get something when they retire.

Which is fair doos , some folk get obsessed with them also

 

[Darlo1973]

Which is fair doos , some folk get obsessed with them also

There's a healthy balance to be had between getting obsessed with day to day movements in a fund which you aren't going to touch for 30+ years and not caring at all. Even a taking a few minutes to understand what your money is paying for can make ten of thousands of pounds different to your retirement fund. Financial literacy in this country is shocking even among people who are otherwise well educated

 

[timeforheroes1]

The fund I’ve been recommended/ interested in is the upper medium risk as I’ve still got a good 10/15 years until retirement. SJP state that their targeted return is 8% on this fund. I’m wondering, like with most things in life, the negatives are quite vocal over the positives. I’m doing more and more reading and it seems there’s negative stories for all the major funds. SJP do have a lot of negative reviews but then they are one of the biggest so percentage wise it may not be that bad. There’s just so much info out there these days it’s all a bit overwhelming.
SJP seem to have changed their charging structure which was one of their biggest issues it seems. But if I’m being told they won’t charge more than my current pension provider then that seems to be one issue that I won’t have.

To be honest the current charging structure will be more beneficial to you if your not touching it for 10/15 as you won’t pay the initial fees

Wouldn’t get too hung up on ongoing charges it’s all about the net return , if it’s shit just move it but the managed medium fund launched 2011 is above 8.4 annual net and way ahead of the benchmarks

What's you current provider charge though?

Think its something like 95% of passive index funds out perform active managed funds. Over the last few years 8% average isn't great either. Nigh on 2% fee is a rip off when Vanguard are charging 0.35%

Vanguard 80 over 5 year currently 43.8 SJP adventurous upper medium 44.1

That 2 percent fee has given you better growth

 

[Matt Hopkins]

To be honest the current charging structure will be more beneficial to you if your not touching it for 10/15 as you won’t pay the initial fees

Wouldn’t get too hung up on ongoing charges it’s all about the net return , if it’s shit just move it but the managed medium fund launched 2011 is above 8.4 annual net and way ahead of the benchmarks


Vanguard 80 over 5 year currently 43.8 SJP adventurous upper medium 44.1

That 2 percent fee has given you better growth

Aye but are you comparing like for like? Just had a quick look at SJP the fund you mention seems to be 100% equities so maybe better off comparing it with VLS100 or even FTSE Global all cap. Got any links?

 

[Edinburgh Black Cat]

I recently found out our works one is a generic life styling one - royal London . Luckily I’ve got 3/4 of a final salary one (got kicked out) so not as exposed otherwise would prob need advice to move it

I still think prob need to de risk slightly as you approach and start retirement, so not as exposed if was a crash, just not as much as the generic life styling ones do . IMO 60% seems the right level when retired , just my opinion though and I’m not that clued up

I would've thought the figure would be best determined by how much you want to withdraw. For example, keep 3 or 4 years in cash so you can withdraw without damaging the balance too much.

(Not advice)

 

[houghton cut head]

I have a DB final salary type pension be taken at pension age. (Don't want to take earlier as hefty penalties) hoping my smaller SIPP pots see me thru from 60 to state pension and main pension. Dont really want to work at 60 but may need a little side earner or drop hours to see me thru.

When you say "hefty penalties" dont forget to calculate how much you are actually earning from the pension you took early.

Most people think, if I take my £10K pension 5 years early I will only get £8K, so a 20% drop, whilst not factoring in the fact they have received £40K out of that pension in 5 years. That £40K the equated to 20 years @ £2K a year more before you actually lose out by taking your pension early.