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    • edinburgher
    • By edinburgher 11th Jul 17, 9:06 AM
    • 10,730Posts
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    edinburgher
    Cheapest SIPP for £30-50k in funds?
    • #1
    • 11th Jul 17, 9:06 AM
    Cheapest SIPP for £30-50k in funds? 11th Jul 17 at 9:06 AM
    I'm going to move my current work pension into a SIPP as, while the fees are reasonable (0.4%), the fund choices aren't great and underperform vs. comparables.

    Fund is currently about £32k and new contributions will be minimal, I'd expect no more than £50k total value in the next 5 years all in.

    I have looked at the helpful M0nevator broker comparison table, but it has become a bit too sprawling for me. Close Brothers looked like my best bet (low fees + no transfer out costs), but they're not currently accepting new applications for their self-directed accounts.

    Is there anything out there that would suit me better than my current Best Invest SIPP? Pot will likely be invested in 1-3 Vanguard products.
Page 1
    • greenglide
    • By greenglide 11th Jul 17, 9:24 AM
    • 2,895 Posts
    • 1,867 Thanks
    greenglide
    • #2
    • 11th Jul 17, 9:24 AM
    • #2
    • 11th Jul 17, 9:24 AM
    Who is the work pension with and what are the funds currently? What others are available?

    What are the current fees split into platform and funds?

    Does the employer scheme actually allow you to transfer investments out when still a member? Some dont.

    What makes you think that 1-3 Vanguard funds will perform any better than funds offered by the employer scheme?
    Last edited by greenglide; 11-07-2017 at 9:25 AM. Reason: typo
    • cloud_dog
    • By cloud_dog 11th Jul 17, 9:32 AM
    • 3,251 Posts
    • 1,813 Thanks
    cloud_dog
    • #3
    • 11th Jul 17, 9:32 AM
    • #3
    • 11th Jul 17, 9:32 AM
    Have you played around with Snowman's invaluable spreadsheet?

    Are you wedded to the idea that your SIPP investments will be in OIECs/UTs?
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • edinburgher
    • By edinburgher 11th Jul 17, 3:53 PM
    • 10,730 Posts
    • 56,063 Thanks
    edinburgher
    • #4
    • 11th Jul 17, 3:53 PM
    • #4
    • 11th Jul 17, 3:53 PM
    Who is the work pension with and what are the funds currently? What others are available?

    What are the current fees split into platform and funds?

    Does the employer scheme actually allow you to transfer investments out when still a member? Some dont.

    What makes you think that 1-3 Vanguard funds will perform any better than funds offered by the employer scheme?
    Originally posted by greenglide
    1. I'm leaving the employer, new job offers membership of LGPS, so just trying to grow the value of my DC pot as best as I can with the potential to add to it in future to bridge the gap between 50s and SPA.
    2. Current pension with L&G, the fees stated in my OP are all platform costs, no additional charges for the funds that I invest in (in essence, I've tried to duplicate VLS100 using index tracking funds offered by L&G)
    3. I believe that using Vanguard funds will produce a superior result because they include more diverse holdings (for example, there's little to no EM available to me with my current funds and tracking error is greater). I have been satisfied with results over the last 5-6 years, but a rising tide lifts all boats
    4. Realistically it would be 2 funds (2 flavours of VLS for lifestyling or something like FTSE Global All Cap index Fund Acc and a bond fund)

    Have you played around with Snowman's invaluable spreadsheet?

    Are you wedded to the idea that your SIPP investments will be in OIECs/UTs?
    Originally posted by cloud_dog
    I have had a play and it suggests that CSD would be my best option at this point in time. I am unimpressed with their costs for transfers out and am not keen to open a SIPP with them as a result.

    Not wedded to OIECS/UTs
    • cloud_dog
    • By cloud_dog 11th Jul 17, 4:49 PM
    • 3,251 Posts
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    cloud_dog
    • #5
    • 11th Jul 17, 4:49 PM
    • #5
    • 11th Jul 17, 4:49 PM
    Hi

    Using £32k and 0.4%, annual charges are £128pa.

    Whilst I appreciate this is an 'all in' cost might it be worth considering moving to a fixed price provider?

    I know fixed price providers tend to charge for all transactions, for example II?

    Alternatively, hang on as you are and wait for Vanguard to offer a SIPP platform (their ISA option is 0.15%).

    The reason I mention non-OIECs is that you could use Jarvis X-O (only ITs / ETFs / shares) and as long as you have a dealing account with them they will refund the annual charge. There are lots of other things to consider before going down this route though.
    Last edited by cloud_dog; 11-07-2017 at 4:51 PM.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • cloud_dog
    • By cloud_dog 12th Jul 17, 11:25 AM
    • 3,251 Posts
    • 1,813 Thanks
    cloud_dog
    • #6
    • 12th Jul 17, 11:25 AM
    • #6
    • 12th Jul 17, 11:25 AM
    The OH SIPP is with HL and has a similar sized pot to yourself. I have been looking at options (and would be comfortable for the non-OIEC option). It is further complicated by the fact that their dealing/S&S ISA is with TD Direct which has been bought by II. Under TD we never paid any dealing/ISA platform fee (fees for all transactions).

    So, I am partially looking at just moving the SIPP and partially looking at options for moving the SIPP and dealing/S&S ISA accounts also.

    SVS XO have stated on their website that they are introducing a SIPP but they provide no time scales and obviously there aren't any prices disclosed yet.

    ATM, I am erring on the 'wait and see' for a little while longer.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
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