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10 Costly Pension Mistakes Millions Of Britons Make

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http://www.hl.co.uk/news/articles/10-costly-pension-mistakes-millions-of-britons-make?utm_source=outbrain&utm_medium=content+dist&utm_campaign=CX054_tom+mcphail_10+costly+pension+mistakes+millions+of+britons+make_10+costly+pension+mistakes+millions+of+britons+make&cnr=&theSource=CX054&Override=1

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5. Relying on property

As the saying goes: an Englishman's home is his castle. But it may also be his largest investment.

If you decide to just use property as a retirement fund, you could be putting all your eggs in one basket. Investment professionals agree diversification is key to managing risk, although it doesn't guarantee against loss.

So, if you already have capital invested in property, doesn't it make sense to consider diversifying and investing in different asset classes? What's more, the property market isn't exactly "safe as houses" - as people who had to sell their home in 2008 and 2009 will testify."

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HL always seem pretty bearish on housing (not surprising given they mostly push stock funds)

Obviously they are correct from a economic POV, but as we all know, government most involve itself to prevent affordable housing.

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So basically, start handing your dosh over to those guys in pin striped suits and red braces the second you start your first job and rely on the miracle of "compand innerest" as you ponzi erm I mean pension earns 7% per year.

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So basically, start handing your dosh over to those guys in pin striped suits and red braces the second you start your first job and rely on the miracle of "compand innerest" as you ponzi erm I mean pension earns 7% per year.

Why not look before mouthing uninformed prejudice?

HL have a small amount of business managing money and offering advice.

They have a very big business providing a platform for clients to manage their own money. They're no longer the cheapest, but they were in the vanguard of driving costs down from the outrageous levels of yesteryear.

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don't rely on Financial professionals. Open your own SIPP save management fees and just by index funds. In 25 years you will always be ahead as you didn't have to pay 1-2% of your growth to the professionals and this would compound over time.

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HL are actually very good at least compared to the competition. Their fees are pretty low (not the absolute lowest) and they have people manning the phones who can actually fix stuff. Also, they're execution only, so there's never any sell from them other than marketing fluff like the above.

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Why not look before mouthing uninformed prejudice?

I did look and they were whittering on about the taxman giving people who took out a pension scheme lots of free cash and the miracle of compound interest. I doubt many pension schemes will realize the interest levels that are used in the projections. Hence my perfectly equitable comment.

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Whilst I think they are very good and have my SIPP with them, clearly BTL is a competitor for 'pension' style monies.

They are probably concerned about people being able to raid their pots soon and bung it all in BTL.

I think that's a two-edged sword. The people who could raid their pots and bung it into BTL are the same people who could raid their pots and bung it into an annuity. In either case, the pot reaches the end of life and closes, and HL's role with that individual's pension ends.

Of course some clients will take advantage of the improved rules and go into income drawdown, so the fund at HL remains open. Some of those could put their pots into BTL, but if you incline to BTL, why wait 'til you retire before starting? A person with an HL SIPP is a person who has already made a choice NOT to put that money into BTL. A SIPP - unlike a workplace pension - is always an active choice, never a mere box-tick or failure to opt out.

It's like the silly argument about splurging it all on a ferrari. Someone who goes for excessive instant gratification is not someone who builds a pension pot in the first place.

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So basically, start handing your dosh over to those guys in pin striped suits and red braces the second you start your first job and rely on the miracle of "compand innerest" as you ponzi erm I mean pension earns 7% per year.

It worked okay for me.

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Yeah, I like Hargreaves Lansdown: I've got a SIPP with them myself, that I've combined my various pensions into. I've always found them prompt, thorough and professional*, UNLIKE the pension companies that I've dealt with (seriously: getting them to relax their deathgrip on my pension funds was like pulling teeth). Now I'm free to mismanage my own funds as I see fit and I can always see exactly what HL are taking in charges (peanuts, compared to the 'actively managed' pension funds).

*I don't work for HL, honest!

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I'm with HL with a SIPP as well. Good web site can easy to check if my fund is beating the ftse which it is.

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