The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Martz256 on August 21, 2012, 02:53:52 AM
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I recently posted my conundrum on whether i should stick with my company pension scheme now that i'm no longer getting any employer input or whether to instead put my money into a Stocks ISA.
After a lot of searching around I feel like I'm learning loads and have decided to stick with the pension. The main factors for this are that my new job has pushed me into the 40% tax bracket, and therefore a pension is an immediate tax saving considering I will no doubt be withdrawing it at 20% when the time comes. The other thing that I found is that it's possible to get an income drawdown pension when I retire, I had not heard of these before and the thought of having to buy annuities puts me off.
So to my new conundrum!
After reading the forums and many different blogs my plan was this:
- Open a SIPP with Hargreaves Lansdown
- Transfer my current pension balance to them
- Invest in Vanguard UK LifeStrategy 80%
- Sit and wait.
But wait... shouldn't I look at this pension that I currently have? I'm sat here assuming that work signed me up to a lemon but they were a big firm, maybe they knew what they were doing.
It's a Legal and General fund, PMC Consensus Index Fund. See attachment.
It has around 75% equities, 15/20% bonds and some cash, seems very similar to the vanguard one. It also has a fund management charge of 0.20% which seems really good!
So my question is... what am I missing? Is this fund as good as the Vanguard one (for the reasons normally discussed on this board i.e. charges, diversity etc.) Do i need to dig deeper for any other charges that might apply, I just assume that they can't possible be 0.2% :-)
Thanks for any info
Martyn