Re: which stakeholder pension

On 30 May, 13:39, blackbat <inva...@xxxxxxxxxxxxxxx> wrote:
On Fri, 30 May 2008 03:52:34 -0700 (PDT), Daytona

<junk721...@xxxxxxxxxxx> wrote:
True and true again if she's not disciplined <g> !

:-)

She wouldn't spend it on new shoes but I'd like to keep it out of
harm's way if we move house for example.

But it could be a restrictive option in terms of having the money
available to pass on as inheritance.

Any thoughts on Hargreaves Lansdown as a company?

I've not really used them - I bought and sold some warrants 10 years
ago but that's hardly relevent - I would have recommended them
alongside SD & AT had Andy Pandy not already mentioned them. I'm a
little prejudiced against them because of their percentage based fees
ie the Unit Trust / OEIC renewal fee - I prefer cost plus based fees.

So, the underlying funds are still owned by my wife and she loses
nothing. Unless money is in transit or she has just paid a lump sum to
the Sipp and it hasn't been invested yet.

Money at -
Administrator - Sippdeal, AT, HL etc = FSCS investment sub scheme
compensation £48,000
Fund manager = FSCS investment sub scheme compensation £48,000
Bank = FSCS deposit sub scheme compensation £35,000

I have just posted my initial post on the TMF forums. Didn't realise
you guys were regulars on there too. Don't blackball me as a
crossposter!

I am, I don't know how many others are. This and TMF are imo the best
places for financial advice in the UK. Crossposting is OK - finance is
serious stuff so the more views the better. I would, however, have
crossposted links on both as a courtesy so that people don't go over
old ground. Google Groups keeps a comprehensive usenet archive which
facilitates linking; this thread is -
http://groups.google.co.uk/group/uk.finance/browse_frm/thread/02d71e3a9006bdce/7b464f03b656b4c4?#7b464f03b656b4c4

I *think* I understand :-)

No worries - keep asking/internet searching until you do or you wear
us out and no-one answers <g> !

High yield, buy and hold strategy
http://www.fool.co.uk/specials/2006/specials060208.htm

High yield, change each year
http://boards.fool.co.uk/Message.asp?mid=10414020

iShares FTSE UK Dividend Plus
http://www.trustnet.co.uk/etf/funds/?fund=34

Jupiter Income
http://www.trustnet.co.uk/ut/funds/port.asp?fund=1324

Invesco Perpetual Income
http://www.trustnet.co.uk/ut/funds/?fund=477

Invesco Perpetual High Income
http://www.trustnet.co.uk/ut/funds/?fund=476

Barclays Global Investors (BGI) iShares FTSE 100 Exchange Traded Fund
(ETF)
http://www.trustnet.com/etf/funds/?fund=288

Fantastic.
I'll have a look throught these this evening. I'm supposed to be
painting the kitchen....
On the face of it though, there's a lot of high income funds there. I
thought the idea was to build up funds regardless of their
income/growth flavour and then buy an annuity at the end, with maybe
25% lump sum?
If so why recommend High Income funds - I thought they were moreso
vehicles for providing income for people that want to skim and live
off their investments. If you're buying an annuity you's surely just
want the best performing funds regardless of their growth or income
style.

For some reason, historically, companies paying relatively high
dividends, and hence the income funds which invest in them, have
outperformed the rest in terms of total return (capital gain plus
income). See the research papers. So it's an investment strategy known
as high yield. If you don't need the income you simply reinvest it.

In theory, it shouldn't be that way because money kept with the
company and reinvested (and hence untaxed) should lead to a greater
return than money which is taxed and distributed to shareholders. I
think I've explained it correctly, but others will no doubt dive in if
not.

As for annuities, I wouldn't. Escalating annuities are a waste of
space see -
http://boards.fool.co.uk/Message.asp?mid=11061203
I see annuities as for people who are desperate for the security of an
income if you live to 105. But the state pension and in your wifes
case her teachers pension handles that, so that any further investment
in a restrictive environment aint great. I subscribe to the 'pension
plundering' view - as early as possible, take the maximum tax free
cash and use unsecured pension (aka income drawdown) to extract 120%
of the equivelent level annuity amount and reinvest the excess in a
more benign environment eg ISAs or using a plain non ISA account.

HTH??
It certainly does - thanks again.

Thanks, it's nice to be appreciated <g> !

--
Daytona
.

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