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  • FIRST POST
    • Workerbee999
    • By Workerbee999 11th Jun 17, 11:53 AM
    • 32Posts
    • 1Thanks
    Workerbee999
    Low cost SIPP platform for regular saver
    • #1
    • 11th Jun 17, 11:53 AM
    Low cost SIPP platform for regular saver 11th Jun 17 at 11:53 AM
    Hi

    I'm sure this has been asked numerous times across the threads, but I wondered if anyone could suggest the lowerest cost SIPP platform that would be best for a simple SIPP @ £150 per month in a Vanguard Lifestyle 100% equity?

    This is to help supplement early retirement @ 55 in 6 years time (making use of personal allowances etc.) for someone who will have a long serving DB pension at 63. £150 per month is just to get it started, we will add more later.

    Is there any expectation that Vanguard will open their new platform to SIPPs any time soon?

    Thanks
Page 1
    • dunstonh
    • By dunstonh 11th Jun 17, 12:11 PM
    • 89,513 Posts
    • 55,946 Thanks
    dunstonh
    • #2
    • 11th Jun 17, 12:11 PM
    • #2
    • 11th Jun 17, 12:11 PM
    Is there any expectation that Vanguard will open their new platform to SIPPs any time soon?
    Running costs for SIPPs are higher than other tax wrappers. Plus, the costs are expected to increase. Vanguard have a history in the UK of phasing things in or phasing charges down. Expectation is likely to be 2018 or 2019 depending on how much sucess they have with the ISA/unwrapped and whether volumes on those will require them to run the SIPP more expensively than the ISA/unwrapped.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • bigadaj
    • By bigadaj 11th Jun 17, 2:03 PM
    • 10,655 Posts
    • 6,959 Thanks
    bigadaj
    • #3
    • 11th Jun 17, 2:03 PM
    • #3
    • 11th Jun 17, 2:03 PM
    For smaller sums it's probably bestinvest, 0.3% plus fund charges so a bit over 0.5% all together.

    That's pretty good, a personal pension would probably be similar though.
    • kidmugsy
    • By kidmugsy 11th Jun 17, 2:15 PM
    • 9,821 Posts
    • 6,614 Thanks
    kidmugsy
    • #4
    • 11th Jun 17, 2:15 PM
    • #4
    • 11th Jun 17, 2:15 PM
    http://monevator.com/compare-uk-cheapest-online-brokers/
    • Workerbee999
    • By Workerbee999 11th Jun 17, 4:56 PM
    • 32 Posts
    • 1 Thanks
    Workerbee999
    • #5
    • 11th Jun 17, 4:56 PM
    • #5
    • 11th Jun 17, 4:56 PM
    Thanks.

    If the SIPP is going to be for my husband, does it matter if the contribution comes out of my bank account, or does it need to be one in his name? He is a 40% tax payer so I am assuming that he will get the 20% Gov top up as normal, and will then claim back the 20% through his tax code, so it's just about the logistics of which account it comes out of. (No salary sacrifice available to him and I am already maxing my contributions)
    • zagfles
    • By zagfles 11th Jun 17, 5:20 PM
    • 12,474 Posts
    • 10,461 Thanks
    zagfles
    • #6
    • 11th Jun 17, 5:20 PM
    • #6
    • 11th Jun 17, 5:20 PM
    See also Snowman's spreadsheet http://forums.moneysavingexpert.com/showthread.php?t=5583030
    • Not Me Officer
    • By Not Me Officer 11th Jun 17, 6:16 PM
    • 280 Posts
    • 49 Thanks
    Not Me Officer
    • #7
    • 11th Jun 17, 6:16 PM
    • #7
    • 11th Jun 17, 6:16 PM
    I just want to check i've understood this.

    Looking at Cavendish Online (0.25% charge) and Hargreaves Lansdown (0.45% charge up to £200) as 2 examples.

    With £10,000 in the pot the cost would be
    CO: 0.025*10,000 = £250
    HL: 0.045*10,000 = £450 yet it's capped at £200 according to http://monevator.com/compare-uk-cheapest-online-brokers/ so while the % is more it's actually cheaper at £10k

    even moreso if in an ISA and not a SIPP.

    Just wanting to double check that i've got the right jist of it because i'm at £7,500 currently

    so CO: 0.025*7500= £187.50
    HL: 0.045*7500= £337.50 (but capped at £200)

    so i'm not really going to be far off (if i've understood correctly) HL being cheaper (in terms of SIPP but already cheaper if in terms of ISA)

    Or have i got the wrong end of the stick?
    • zagfles
    • By zagfles 11th Jun 17, 6:46 PM
    • 12,474 Posts
    • 10,461 Thanks
    zagfles
    • #8
    • 11th Jun 17, 6:46 PM
    • #8
    • 11th Jun 17, 6:46 PM
    I just want to check i've understood this.

    Looking at Cavendish Online (0.25% charge) and Hargreaves Lansdown (0.45% charge up to £200) as 2 examples.

    With £10,000 in the pot the cost would be
    CO: 0.025*10,000 = £250
    HL: 0.045*10,000 = £450 yet it's capped at £200 according to http://monevator.com/compare-uk-cheapest-online-brokers/ so while the % is more it's actually cheaper at £10k

    even moreso if in an ISA and not a SIPP.

    Just wanting to double check that i've got the right jist of it because i'm at £7,500 currently

    so CO: 0.025*7500= £187.50
    HL: 0.045*7500= £337.50 (but capped at £200)

    so i'm not really going to be far off (if i've understood correctly) HL being cheaper (in terms of SIPP but already cheaper if in terms of ISA)

    Or have i got the wrong end of the stick?
    Originally posted by Not Me Officer
    The cap only applies to shares, ETF's etc, not to funds.

    See http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates
    • Not Me Officer
    • By Not Me Officer 11th Jun 17, 6:53 PM
    • 280 Posts
    • 49 Thanks
    Not Me Officer
    • #9
    • 11th Jun 17, 6:53 PM
    • #9
    • 11th Jun 17, 6:53 PM
    The cap only applies to shares, ETF's etc, not to funds.

    See http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates
    Originally posted by zagfles
    Thanks.
    That was one of those i'm sure i'm getting something wrong here but not sure what moments.
    • cloud_dog
    • By cloud_dog 11th Jun 17, 10:27 PM
    • 3,250 Posts
    • 1,812 Thanks
    cloud_dog
    Thanks.
    That was one of those i'm sure i'm getting something wrong here but not sure what moments.
    Originally posted by Not Me Officer
    Also, your maths is out by a factor.

    I'm not sure how you are representing the platform fee percentages but HL is 0.45% and Cavendish is 0.25%.

    (divide your output by 10 and you've got the real costs involved)
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Not Me Officer
    • By Not Me Officer 11th Jun 17, 11:06 PM
    • 280 Posts
    • 49 Thanks
    Not Me Officer
    Also, your maths is out by a factor.

    I'm not sure how you are representing the platform fee percentages but HL is 0.45% and Cavendish is 0.25%.

    (divide your output by 10 and you've got the real costs involved)
    Originally posted by cloud_dog
    Oops it's 0.0045% isn't it.

    It's been a long time is my excuse that i'm sticking to. haha.
    • cloud_dog
    • By cloud_dog 12th Jun 17, 9:56 AM
    • 3,250 Posts
    • 1,812 Thanks
    cloud_dog
    Oops it's 0.0045% isn't it.

    It's been a long time is my excuse that i'm sticking to. haha.
    Originally posted by Not Me Officer
    It is but....apologies for being pedantic but it is 0.45% OR 0.0045.

    Another way to do percentages is to divide the figure by 100 and multiple by the other value, i.e. 7500 / 100 and multiple 0.45 (by the percentage), rather than creating your 0.0045. Each to their own
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Joey Soap
    • By Joey Soap 12th Jun 17, 11:03 AM
    • 79 Posts
    • 21 Thanks
    Joey Soap
    For lower % based fees it is also worth looking at Close Brothers too. 0.25% pa.
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