Cheapest platform for trackers
Alan_Brown
Posts: 200 Forumite
Hi,
I have £170k in a Sipp and after dabbling with a few managed funds and different shares, I now want to put the proceeds in low cost trackers and leave them alone. I'm with Hl at the moment but going forward I don't want to be paying their larger platform fees when all I'm doing is investing in trackers (though I do know that HL negotiate special commission rates on popular trackers, and understand that the overall costs need to be taken into account, not just platform fees).
For info, I'm 49 later this year and as well as the SIPP I have a small DB Pension (worth £4k a year) and also a DC Pension with my current employer worth £32k (this is the only Pension that I'm contributing money to).
I'm looking to invest the pension and then leave it while I sort out my other finances (especially my mortgage) with the hope of retirement between 60 and 65.
Any help would be greatly appreciated.
I have £170k in a Sipp and after dabbling with a few managed funds and different shares, I now want to put the proceeds in low cost trackers and leave them alone. I'm with Hl at the moment but going forward I don't want to be paying their larger platform fees when all I'm doing is investing in trackers (though I do know that HL negotiate special commission rates on popular trackers, and understand that the overall costs need to be taken into account, not just platform fees).
For info, I'm 49 later this year and as well as the SIPP I have a small DB Pension (worth £4k a year) and also a DC Pension with my current employer worth £32k (this is the only Pension that I'm contributing money to).
I'm looking to invest the pension and then leave it while I sort out my other finances (especially my mortgage) with the hope of retirement between 60 and 65.
Any help would be greatly appreciated.
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Comments
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though I do know that HL negotiate special commission rates on popular trackers
Commissions are banned. Superclean share classes are available on most platforms. Some platforms will have more than others. HL do not have the most although they have a fair range.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Google Snowman's Spreadsheet to compare platforms.
Also - HL are known to negotiate the platform fee if you're thinking of moving away - I think £170k is the sort of amount where they've been known to offer lower fees eg around 0.25% rather than the usual 0.45%. Worth a try - find a cheaper platform and ask them for a lower charge to stop you moving!
Also don't judge on cost alone - make sure you read reviews of other platforms.0 -
Even a negotiated reduction with Hargreaves is still going to look expensive I would have thought.
A fixed fee provider like iWeb would, be much cheaper I would have thought though aren't there exit fees for hl?0 -
HL cap their platform charge at £200 for ETFs and investment trusts and there are even more tracker ETFs than standard funds, with comparable prices. You will pay dealing charges, though. It's useful for buy and hold, with standard funds used for ongoing investing until the trade cost of switching a chunk into the ETFs is worthwhile.0
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I thought the same so went direct to Vanguard and avoided the platform thing. Did a FTSE tracker and also a 60/40 Lifestrategy fund. According to a few websites the charges are tiny, by all accounts you won't find a lower TER.Funnily, i've been pondering a small Caddy sized van to facilitate a side project i'm going to work on. I havent seen much movement yet, but in theory markets like pickups and vans are likely to be hit by the upcoming downturn.Would be interesting to hear if anyone has direct experience?Why? So you can argue with them?0
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I thought the same so went direct to Vanguard and avoided the platform thing. Did a FTSE tracker and also a 60/40 Lifestrategy fund. According to a few websites the charges are tiny, by all accounts you won't find a lower TER.
Vanguard currently have no tax wrappers and messing around with the asset allocation could cost you more in lost returns than the charges saved.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Oh....what would constitute 'messing about with the allocation' mean to the uneducated? Genuine question cos I did two funds of about £125k each and the last valuation looked pretty impressive, more so the 60/40 one. No expert here!Funnily, i've been pondering a small Caddy sized van to facilitate a side project i'm going to work on. I havent seen much movement yet, but in theory markets like pickups and vans are likely to be hit by the upcoming downturn.Would be interesting to hear if anyone has direct experience?Why? So you can argue with them?0
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Then read my account and pay half the price of Lifestrategy by mixing your own with other trackers.I thought the same so went direct to Vanguard and avoided the platform thing. Did a FTSE tracker and also a 60/40 Lifestrategy fund. According to a few websites the charges are tiny, by all accounts you won't find a lower TER.
That wasn't about building a full replacement but maybe others would like to join in and put together the alternatives to replicate everything in them at lower cost.
That would mean changing the percentages of the funds.Oh....what would constitute 'messing about with the allocation' mean to the uneducated? Genuine question cos I did two funds of about £125k each and the last valuation looked pretty impressive, more so the 60/40 one. No expert here!
HL cap their platform charge at £200 a year for ETFs in their SIPP so £200 on £250,000 would be 0.08% platform charge. £45 cap in the ISA, 0.018%. No platform charge on them in the fund and share account. All plus the ETF cost and dealing. My post lists regular funds not ETFs but you can probably find comparable ETFs and still come in cheaper with HL than direct with Vanguard if you're using Lifestrategy. No dealing charges on funds so you can use a bit in them and pay their platform charge to make modest allocation changes without paying dealing costs until the change becomes big enough to do the ETF transaction(s).0 -
Okay,,,,these two are part of a bunch outside of my DB pension (maxed out). Thought I was being clever going to Vanguard...this is getting complicated....Funnily, i've been pondering a small Caddy sized van to facilitate a side project i'm going to work on. I havent seen much movement yet, but in theory markets like pickups and vans are likely to be hit by the upcoming downturn.Would be interesting to hear if anyone has direct experience?Why? So you can argue with them?0
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Jamesd..... I can't recall the exact figures but I thought Vanguard was waaaay cheaper? Less than 0.2 % overall, am I missing something major?Funnily, i've been pondering a small Caddy sized van to facilitate a side project i'm going to work on. I havent seen much movement yet, but in theory markets like pickups and vans are likely to be hit by the upcoming downturn.Would be interesting to hear if anyone has direct experience?Why? So you can argue with them?0
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