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Savings and Investments thread

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    Rob7Lee said:
    bobmunro said:
    Rob7Lee said:
    With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
    Agreed. 

    The bigger the holding the more likely you are to approach the 1%.

    1% instant access tax free equates to:

    Basic Rate Tax Payer = 1.25% Gross 
    Higher Rate Tax Payer = 1.67% Gross
    Additional Rate Tax Payer = 1.82% Gross 

    Pretty tough to find those rates elsewhere for instant access.
    Yup, i'll take the 1.82%. It's quite funny, my wife see's it as a game and gets up early to see what she's won on the day :-)

    It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
    Well, someone's making money out of the low interest rates & its not the customer.

    Slightly different tack, but still on the subject, but this time mortgage rates. 15 years ago you could get a base rate tracker at around 0.39% above BOE. These all disappeared in 2008/9 when the banking crisis hit. Over time they have started to reappear but nowhere near as good. 90% of deals nowadays are 2 or 5 year fixed - Nationwide are about the only main lender that still does a decent 2 year tracker.

    2 years ago I got a client a 2 year deal with them of 0.69% above base (which then was 0.5) - so they got 1.19%. 2 years are up & went to do a rate switch (where you stay with the same lender & simply take their new rate). No extra borrowing & same LTV. Base rate is now 0.1% so client expecting a rate of around 0.8%, maybe even close to 1%. Nope. Differential is now 1.14%, making the total rate 1.24%.......which is HIGHER than they had 2 years ago. That was in August. Nationwide have this week pulled their deals & brought out new ones. The differential is now at 1.59% !!! Almost 1% more than 2 years ago. 

    As I said, someones making money & it's not the customer. 
    When I moved Feb 2008 I was just coming to the end of a 2 year discount with Nationwide. That was base rate MINUS 1.25%.....
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    Rob7Lee said:
    Rob7Lee said:
    bobmunro said:
    Rob7Lee said:
    With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
    Agreed. 

    The bigger the holding the more likely you are to approach the 1%.

    1% instant access tax free equates to:

    Basic Rate Tax Payer = 1.25% Gross 
    Higher Rate Tax Payer = 1.67% Gross
    Additional Rate Tax Payer = 1.82% Gross 

    Pretty tough to find those rates elsewhere for instant access.
    Yup, i'll take the 1.82%. It's quite funny, my wife see's it as a game and gets up early to see what she's won on the day :-)

    It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
    Well, someone's making money out of the low interest rates & its not the customer.

    Slightly different tack, but still on the subject, but this time mortgage rates. 15 years ago you could get a base rate tracker at around 0.39% above BOE. These all disappeared in 2008/9 when the banking crisis hit. Over time they have started to reappear but nowhere near as good. 90% of deals nowadays are 2 or 5 year fixed - Nationwide are about the only main lender that still does a decent 2 year tracker.

    2 years ago I got a client a 2 year deal with them of 0.69% above base (which then was 0.5) - so they got 1.19%. 2 years are up & went to do a rate switch (where you stay with the same lender & simply take their new rate). No extra borrowing & same LTV. Base rate is now 0.1% so client expecting a rate of around 0.8%, maybe even close to 1%. Nope. Differential is now 1.14%, making the total rate 1.24%.......which is HIGHER than they had 2 years ago. That was in August. Nationwide have this week pulled their deals & brought out new ones. The differential is now at 1.59% !!! Almost 1% more than 2 years ago. 

    As I said, someones making money & it's not the customer. 
    When I moved Feb 2008 I was just coming to the end of a 2 year discount with Nationwide. That was base rate MINUS 1.25%.....
    Slight difference between a discounted rate & a tracker. Are you sure it was based on the BOE base rate as discounted rates are usually based on the SVR. Nationwide over the years have generally offered very good rates. My memory fails me but they brought in their MMR rate in the early 2000's which was neither the BOE base rate nor their SVR.
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    Rob7Lee said:
    Rob7Lee said:
    bobmunro said:
    Rob7Lee said:
    With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
    Agreed. 

    The bigger the holding the more likely you are to approach the 1%.

    1% instant access tax free equates to:

    Basic Rate Tax Payer = 1.25% Gross 
    Higher Rate Tax Payer = 1.67% Gross
    Additional Rate Tax Payer = 1.82% Gross 

    Pretty tough to find those rates elsewhere for instant access.
    Yup, i'll take the 1.82%. It's quite funny, my wife see's it as a game and gets up early to see what she's won on the day :-)

    It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
    Well, someone's making money out of the low interest rates & its not the customer.

    Slightly different tack, but still on the subject, but this time mortgage rates. 15 years ago you could get a base rate tracker at around 0.39% above BOE. These all disappeared in 2008/9 when the banking crisis hit. Over time they have started to reappear but nowhere near as good. 90% of deals nowadays are 2 or 5 year fixed - Nationwide are about the only main lender that still does a decent 2 year tracker.

    2 years ago I got a client a 2 year deal with them of 0.69% above base (which then was 0.5) - so they got 1.19%. 2 years are up & went to do a rate switch (where you stay with the same lender & simply take their new rate). No extra borrowing & same LTV. Base rate is now 0.1% so client expecting a rate of around 0.8%, maybe even close to 1%. Nope. Differential is now 1.14%, making the total rate 1.24%.......which is HIGHER than they had 2 years ago. That was in August. Nationwide have this week pulled their deals & brought out new ones. The differential is now at 1.59% !!! Almost 1% more than 2 years ago. 

    As I said, someones making money & it's not the customer. 
    When I moved Feb 2008 I was just coming to the end of a 2 year discount with Nationwide. That was base rate MINUS 1.25%.....
    Slight difference between a discounted rate & a tracker. Are you sure it was based on the BOE base rate as discounted rates are usually based on the SVR. Nationwide over the years have generally offered very good rates. My memory fails me but they brought in their MMR rate in the early 2000's which was neither the BOE base rate nor their SVR.
    I'm sure it was against the BoE base rate as it ran into something like Jan 2009 and right at the end my rate was something like 0.25%, I recall other people having one's that effectively went negative in 2009. Maybe it was a tracker and not a discount, was a while ago! I do remember having an L&G mortgage (worked there at the time) which was a discount about 4% off their SVR (which was about 8%), that would have been around 2000 I think.

    hard to believe I took a job at the woolwich back in 1993 simply to get a 5% mortgage, 5% now seems really expensive but at the time the average rate was maybe 8/9% so was well worth having!
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    Rob7Lee said:
    Rob7Lee said:
    Rob7Lee said:
    bobmunro said:
    Rob7Lee said:
    With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
    Agreed. 

    The bigger the holding the more likely you are to approach the 1%.

    1% instant access tax free equates to:

    Basic Rate Tax Payer = 1.25% Gross 
    Higher Rate Tax Payer = 1.67% Gross
    Additional Rate Tax Payer = 1.82% Gross 

    Pretty tough to find those rates elsewhere for instant access.
    Yup, i'll take the 1.82%. It's quite funny, my wife see's it as a game and gets up early to see what she's won on the day :-)

    It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
    Well, someone's making money out of the low interest rates & its not the customer.

    Slightly different tack, but still on the subject, but this time mortgage rates. 15 years ago you could get a base rate tracker at around 0.39% above BOE. These all disappeared in 2008/9 when the banking crisis hit. Over time they have started to reappear but nowhere near as good. 90% of deals nowadays are 2 or 5 year fixed - Nationwide are about the only main lender that still does a decent 2 year tracker.

    2 years ago I got a client a 2 year deal with them of 0.69% above base (which then was 0.5) - so they got 1.19%. 2 years are up & went to do a rate switch (where you stay with the same lender & simply take their new rate). No extra borrowing & same LTV. Base rate is now 0.1% so client expecting a rate of around 0.8%, maybe even close to 1%. Nope. Differential is now 1.14%, making the total rate 1.24%.......which is HIGHER than they had 2 years ago. That was in August. Nationwide have this week pulled their deals & brought out new ones. The differential is now at 1.59% !!! Almost 1% more than 2 years ago. 

    As I said, someones making money & it's not the customer. 
    When I moved Feb 2008 I was just coming to the end of a 2 year discount with Nationwide. That was base rate MINUS 1.25%.....
    Slight difference between a discounted rate & a tracker. Are you sure it was based on the BOE base rate as discounted rates are usually based on the SVR. Nationwide over the years have generally offered very good rates. My memory fails me but they brought in their MMR rate in the early 2000's which was neither the BOE base rate nor their SVR.
    I'm sure it was against the BoE base rate as it ran into something like Jan 2009 and right at the end my rate was something like 0.25%, I recall other people having one's that effectively went negative in 2009. Maybe it was a tracker and not a discount, was a while ago! I do remember having an L&G mortgage (worked there at the time) which was a discount about 4% off their SVR (which was about 8%), that would have been around 2000 I think.

    hard to believe I took a job at the woolwich back in 1993 simply to get a 5% mortgage, 5% now seems really expensive but at the time the average rate was maybe 8/9% so was well worth having!
    I remember getting a client a tracker deal of BOE minus 0.25%. And also another client a 120% mortgage with Northern Rock. 

    Sorry, but I think I might have been responsible for the financial crash....😄
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    When you look at it even with slightly sober eyes, 120% (and I remember Northern Rock went as high as 125%) was always going to be insanity. 

    A very close family friend was very senior in the Bank of England at the time, and still is, and I remember asking him about it all and he simply said that "they had a short term liquidity crisis which we could have solved, as soon as that got out in the open, it was always going to crash." 

    He wasn't bemoaning journalism at all but I seem to remember suggesting that Robert Preston was a good chunk to do with it all and he certainly didn't disagree. 
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    As soon as you saw people queuing at the branches, NR was done for.
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    NR was done by lending huge sums of money to people who couldn't afford to pay it back.

    How on earth do you provide a secure loan when that security is less than the value of the loan by 25%?

    Falling into negative equity can be dealt with long term, but secure lending to allow people to pay for the white goods, fixtures and fittings in a new property with enough left over for them to buy a new car, was just madness.

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    About 8 years ago I looked into a management buy out with 2 others. The banks would loan upto a maximum of 70% on the fixed assets, which I thought was fair enough. On top of that, the bank insisted that they have our homes as back up in case things went wrong. I only had 18 months left to pay my mortgage off.

    Just what incentive would the bank have had to help keep our business as a going concern? We told them to stuff it.

    Anyway, anyone opened a Paragon account? Good saving rate but seemingly rubbish administrative back up. I have applied following the NS&i rate drop, but not confirmed.

    I won't  put money in until I get confirmation of a working account. 
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    Paragon are fine, I know the Chief exec, but yes their administration is slow.

    An alternative is things like Shepherds and Unity Mutual who do a life type bond paying 2+%. They are Friendly society so can't offer your usual cash account but it's basically the same.

    Shepherds have dropped their rate though, was about 2.8% not long ago for 5 years, now 1.5%. Unity Mutual is 2.25% I think, again 5 years.
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    Anyway, anyone opened a Paragon account? Good saving rate but seemingly rubbish administrative back up. I have applied following the NS&i rate drop, but not confirmed.

    I won't  put money in until I get confirmation of a working account. 

    I opened a one year fixed rate deposit account with them last week, just before it was withdrawn.  So far everything has gone smoothly in terms of funding and obtaining relevant documentation etc.


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    The performance of Novacyt shares have been stunning this year. From 14 at the start of the year to 652 today - not sure how much further it can go.
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    Wow, thats millionaire row right there, hope you invested!
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    Rob7Lee said:
    Wow, thats millionaire row right there, hope you invested!
    Sadly no - Covid 19 testing has made their fortune. Shares will probably continue to rise in the short term until a vaccine arrives.


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    Had a punt on these as well (NYCT), stupidly sold @ £3.50 but still made a very good return, any pharma outfit with potential Covid vaccines or symptom reliefs will give great returns, ODX, AVCT as examples - my humble opinion of course.
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    Just out of interest, for those of you with Premium Bonds, how much do you roughly have invested in them?

    I only have £500 in them, had them for about a year and have won £50 (2x£25 in one month) so a pretty good return by any standards I would think but some people on here seem to be winning much more frequently! Obviously its a lottery and i'm pretty sure I have a small number compared to others but i'm curious how small my little pot really is  :D
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    Just out of interest, for those of you with Premium Bonds, how much do you roughly have invested in them?

    I only have £500 in them, had them for about a year and have won £50 (2x£25 in one month) so a pretty good return by any standards I would think but some people on here seem to be winning much more frequently! Obviously its a lottery and i'm pretty sure I have a small number compared to others but i'm curious how small my little pot really is  :D
    £50 on £500 is amazing! Both I and Mrs R7Lee have the maximum £50k each. We get about the average, so around £1200-£1400 a year between us. I think on £500 the average is about £7 a year so a win once every 3-4 years as the minimum is £25 so you are doing very very well.
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    Rob7Lee said:
    Just out of interest, for those of you with Premium Bonds, how much do you roughly have invested in them?

    I only have £500 in them, had them for about a year and have won £50 (2x£25 in one month) so a pretty good return by any standards I would think but some people on here seem to be winning much more frequently! Obviously its a lottery and i'm pretty sure I have a small number compared to others but i'm curious how small my little pot really is  :D
    £50 on £500 is amazing! Both I and Mrs R7Lee have the maximum £50k each. We get about the average, so around £1200-£1400 a year between us. I think on £500 the average is about £7 a year so a win once every 3-4 years as the minimum is £25 so you are doing very very well.

    Oh, I'm not complaining don't get me wrong - I'm well aware that a 10% return is excellent, especially considering how things are at the minute. Thanks for your reply, I'm pretty green to investing at all really so had no idea what the max is!
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    It used to be £20k some years back but they upped it in stages finally to £50k about 5 years ago.

    To win twice in a year on £500 is extremely rare so very well done! You do get the odd large prize winner with low values. This month someone won £10k who only have just over £600 so you never know! I seem to remember a while back a£100k winner who had something like £20 from the 70's.

    If you are bored you cans all winners here and what they held;

    https://www.thisismoney.co.uk/money/saving/article-1637084/Premium-Bonds-winning-numbers.html

    September was unusual with both £1m winners having less than £20k (one only £10k).

    It's a bit of fun and any winnings are tax free. If interest rates weren't so low I probably wouldn't hold them, not that amount anyway but it's a safe place to keep some cash with in general returns as good as a bank all be it not guaranteed.  
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    Any interesting share/funds to keep an eye on?

    I'm going to do some research and workout what to do with my successful US based funds, what with the election pantomime coming up. 
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    edited October 2020
    mendonca said:
    Any interesting share/funds to keep an eye on?

    I'm going to do some research and workout what to do with my successful US based funds, what with the election pantomime coming up. 
    Firstly, don't sell out of America entirely. Sure, pear back your exposure if you want to, maybe by taking the gains you've made over the past 12-18 months or even taking another 20% out too - but have some exposure to the US.

    As for where then to put that money - depends on where you might be underweight in your portfolio or where you think it's worth a punt. The UK is still more than 20% off where is was at the start of the year. Brexit (deal / no deal) is still weighing heavy on everyone's minds but its got to be resolved one way or t'other soon and short  term either scenario will make money somewhere (currency & overseas earnings on large FTSE stocks). I invest in an Absolute Return fund as a hedge for this (Argonaut) but there are other funds & strategies.

    Bonds are currently out of favour - all my fixed interest funds have fallen over the past couple of weeks but you have to have something on this space for balance & diversification. Keep being told that High Yield is the place to be although I don't see it myself. 

    That then leaves Asia (China & Japan mostly) and Europe as the major other economies / areas to invest. Again, depends on how much exposure you have to these regions- usually I go for no more than 15%-18% combined in the big 3 just mentioned - and that probably includes a bit of emerging markets too.
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    edited October 2020
    Does anyone have any thoughts about children's stocks and shares ISA's? One of my kid's grandparents insists on gifting them £4-5k/year but he's adamant it must go into an ISA. They already have quite a lot of money in Jr cash ISA"s but I was hoping to counteract the risks of all their eggs being in one basket. My kids are 9 - 11 so it's a medium term investment which I plan to persuade them to reinvest for another 10 years when they reach 18. 

    BTW. Last time I poked my head above the parapet on here I was given some warnings about children having access to large amounts of money when they turn 18 which I completely agree with but the grandparent in question isn't going to change his mind so I just have to focus on making the best investment decisions up until that point. Thanks in advance.
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    Thanks @golfaddick. Very good advice.

    I have approximately 50% US/Canada (Gold), 20% Europe, 10% Asia, 10% UK, 10% cash. 

    Japan seems to have had an excellent month. 
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    Does anyone have any thoughts about children's stocks and shares ISA's? One of my kid's grandparents insists on gifting them £4-5k/year but he's adamant it must go into an ISA. They already have quite a lot of money in Jr cash ISA"s but I was hoping to counteract the risks of all their eggs being in one basket. My kids are 9 - 11 so it's a medium term investment which I plan to persuade them to reinvest for another 10 years when they reach 18. 

    BTW. Last time I poked my head above the parapet on here I was given some warnings about children having access to large amounts of money when they turn 18 which I completely agree with but the grandparent in question isn't going to change his mind so I just have to focus on making the best investment decisions up until that point. Thanks in advance.
    The S&S ISA will be a different egg and basket to the Cash ISA's, the only commonality is they are both ISA's/tax free. I'd do it, for the medium to long term should be fine. I'd caution putting large chunks in at once. See if they'll put say £400 a month in each month.
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    It's time for me to start thinking about consolidating all the workplace pensions that I have accumulated over my working life; I've probably got 6 or 7 different pension pots on the go at the moment, all with different fund managers. Does anybody have any recommendations as to the best way to do this? Is Pension Bee a decent option? Are there better options out there?
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    It's time for me to start thinking about consolidating all the workplace pensions that I have accumulated over my working life; I've probably got 6 or 7 different pension pots on the go at the moment, all with different fund managers. Does anybody have any recommendations as to the best way to do this? Is Pension Bee a decent option? Are there better options out there?
    You could always use the services of an IFA 😉.......although if, as your name suggests, your are not in the UK it may be problematic.


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    It's time for me to start thinking about consolidating all the workplace pensions that I have accumulated over my working life; I've probably got 6 or 7 different pension pots on the go at the moment, all with different fund managers. Does anybody have any recommendations as to the best way to do this? Is Pension Bee a decent option? Are there better options out there?
    I consolidated a number into Fidelity (including one DB pension) but have subsequently moved to Interactive Investor for the large part as fee's were cheaper, worth comparing fee's based on your overall fund size and also the type of funds you want to invest in. Personally I wouldn't use a PensionBee type but i'm quite active with mine, trading fairly regularly.

    As golfie says, an IFA if you are UK based, not sure how it all would work if you don't have a UK address?
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    edited October 2020
    It's time for me to start thinking about consolidating all the workplace pensions that I have accumulated over my working life; I've probably got 6 or 7 different pension pots on the go at the moment, all with different fund managers. Does anybody have any recommendations as to the best way to do this? Is Pension Bee a decent option? Are there better options out there?
    I am not a financial advisor or work in the industry, but I can tell you my situation.  

    It was very simple to consolidate all but 1 of my pensions into 1 pension provider.   Two of the pensions (including the largest pot) were with Scottish Widows who also seemed to offer the most decent online service and flexibility of some control of funds for a novice like me.

    They had a form on the Scottish Widows pension site that I completed with all my other pension account details (name, accountno etc..) and Scottish Widows did all the work.  Was very very simple and complete in a couple of weeks.  As it was pension to pension there were no fees, no taxes to pay, very seamless and did not seem to cost me anything materially for doing so. 

    Some gotchas I was warned about:

    1. non Stakeholder pensions (final salary, some specific SIPPS setups) are complicated and you should consult a financial advisor
    2. make sure the provider is one you want to be with for an extended period of time.  Sometimes it is better to leave your eggs in more than one basket, but each to their own and only you can make that decision. 

    It's great I can track the majority of my pension portfolio in one place and the economies of scale mean I can potential earn much more in the 20+ years I have left to work


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    It's time for me to start thinking about consolidating all the workplace pensions that I have accumulated over my working life; I've probably got 6 or 7 different pension pots on the go at the moment, all with different fund managers. Does anybody have any recommendations as to the best way to do this? Is Pension Bee a decent option? Are there better options out there?
    I did this about 5-6 years ago. I went with an IFA in the end who did the work for me and now manages the money. I only regret not doing it sooner. It has made great gains in that time and he uses an online platform that I can access to monitor things. There is a cost to it but it is not massive but it not only made things easier it the gains since he took it over have been way better than what I saw in the previous 5-10 years by a large amount.
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    BalladMan said:
    It's time for me to start thinking about consolidating all the workplace pensions that I have accumulated over my working life; I've probably got 6 or 7 different pension pots on the go at the moment, all with different fund managers. Does anybody have any recommendations as to the best way to do this? Is Pension Bee a decent option? Are there better options out there?
    I am not a financial advisor or work in the industry, but I can tell you my situation.  

    It was very simple to consolidate all but 1 of my pensions into 1 pension provider.   Two of the pensions (including the largest pot) were with Scottish Widows who also seemed to offer the most decent online service and flexibility of some control of funds for a novice like me.

    They had a form on the Scottish Widows pension site that I completed with all my other pension account details (name, accountno etc..) and Scottish Widows did all the work.  Was very very simple and complete in a couple of weeks.  As it was pension to pension there were no fees, no taxes to pay, very seamless and did not seem to cost me anything materially for doing so. 

    Some gotchas I was warned about:

    1. non Stakeholder pensions (final salary, some specific SIPPS setups) are complicated and you should consult a financial advisor
    2. make sure the provider is one you want to be with for an extended period of time.  Sometimes it is better to leave your eggs in more than one basket, but each to their own and only you can make that decision. 

    It's great I can track the majority of my pension portfolio in one place and the economies of scale mean I can potential earn much more in the 20+ years I have left to work


    BallardMan I have a Scottish Widows pension. Are you able to view all you pension details online and switch funds online? SW tell me with mine they can’t do it (it’s not a stakeholder personal pension).
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