QROPS
Join Date: May 2003
Location: Europe
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Man Flex
Do a search for De Veers on ANY financial forum then buy me a pint!
Bengerman
If a manager ACTIVELY manages a personal pension and outperforms the market I think they're worth every penny. One who simply spreads the cash over 20/30 funds and does nothing for 12 months or more has earned an initial fee but nothing more.
Keep in mind that a simple UK tracker fund with an annual charge of 0.15% would have returned over 20% for the FTSE 100 or 30% for the FTSE 250. How does that compare to SJP?
There's no reason that you couldn't put a smaller amount of your pension into the hands of SJP and simply mirror their fund choices in a low cost platform such as Cavendish, Interactive Investor, Alliance Trust etc. I would suggest you would leave out the under-performing funds though.
Do a search for De Veers on ANY financial forum then buy me a pint!
Bengerman
If a manager ACTIVELY manages a personal pension and outperforms the market I think they're worth every penny. One who simply spreads the cash over 20/30 funds and does nothing for 12 months or more has earned an initial fee but nothing more.
Keep in mind that a simple UK tracker fund with an annual charge of 0.15% would have returned over 20% for the FTSE 100 or 30% for the FTSE 250. How does that compare to SJP?
There's no reason that you couldn't put a smaller amount of your pension into the hands of SJP and simply mirror their fund choices in a low cost platform such as Cavendish, Interactive Investor, Alliance Trust etc. I would suggest you would leave out the under-performing funds though.
Join Date: Apr 2008
Location: London
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I shifted my pensions offshore a little while ago. I have no regrets in doing so, the benefits make it worthwhile for me.
Anyone who has moved offshore and has any interest in financial matters should take a close look.
There is a potential problem that is not obvious when you first start looking at the QROPS and is certainly not pointed out by whoever is looking for your business and it is this.
Most financial products are front end loaded. If you take out a loan in the UK it will be front end loaded. What this means, excuse me if you know, is that all the charges are taken at the start which ensures that the companies/banks get their money at the beginning of the arrangement.
Now when you start a QROPS the salesman (FA) of the financial company (such as DeVeres) will want to sell you a product or products that pay commission such as structured notes, bonds etc. these are front end loaded. They want to sell you this stuff on an ongoing basis to generate ongoing commission. That's how they earn a crust so it's fair enough.
However anyone who is at all savvy about financial matters knows that keeping cost down is critical so there is an inherent conflict between customer and adviser.
If you decide that you want to do your own investing, buying and selling shares within your QROPS (one of the benefits) there is no commission for the FA, there very quickly follows a lack of interest. So you need to know that the FA will be happy with this before setting up the QROPS with him, and you need to consider what would happen if he retired, moved company etc.
Anyone who has moved offshore and has any interest in financial matters should take a close look.
There is a potential problem that is not obvious when you first start looking at the QROPS and is certainly not pointed out by whoever is looking for your business and it is this.
Most financial products are front end loaded. If you take out a loan in the UK it will be front end loaded. What this means, excuse me if you know, is that all the charges are taken at the start which ensures that the companies/banks get their money at the beginning of the arrangement.
Now when you start a QROPS the salesman (FA) of the financial company (such as DeVeres) will want to sell you a product or products that pay commission such as structured notes, bonds etc. these are front end loaded. They want to sell you this stuff on an ongoing basis to generate ongoing commission. That's how they earn a crust so it's fair enough.
However anyone who is at all savvy about financial matters knows that keeping cost down is critical so there is an inherent conflict between customer and adviser.
If you decide that you want to do your own investing, buying and selling shares within your QROPS (one of the benefits) there is no commission for the FA, there very quickly follows a lack of interest. So you need to know that the FA will be happy with this before setting up the QROPS with him, and you need to consider what would happen if he retired, moved company etc.
Join Date: May 2003
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Thread Starter
Join Date: Jan 2012
Location: Europe
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if you can take out 100% of your fund in a SIPP albeit taxed at your marginal tax rate what stops you from taking out 100% in a QROPS and taxed at 0% (marginal rate)?
