SIPP, Hargreaves Lansdown and Funds

dunstonh

I appreciate that but a single online HL "account" can be used to view all holdings such as ISA/PEPS and SIPPS.

ahh, you mean login account rather than actual account. This is quite common for all wraps and most fund supermarkets. It is one of the positives.

darren72

I'm looking to invest in a pension and looking into SIPPs.

At the moment I have invested in the Invesco Perpetual Funds (High Income) for an ISA, and would be looking to invest in other funds - for the pension.

Who would generally be the cheapest company to go through to do this ? - My ISA is currently with Hargreaves Lansdown.

Thanks in advance,

Darren

dunstonh

Who would generally be the cheapest company to go through to do this ?

If you are looking at a SIPP then probably HL (although it is possible to get cheaper through other IFAs). However, it may be cheaper on personal pensions.

darren72

dunstonh wrote: »

If you are looking at a SIPP then probably HL (although it is possible to get cheaper through other IFAs). However, it may be cheaper on personal pensions.

Do you still receive the same tax relief (for higher tax payers) on 'personal pensions' ?

Thanks

dunstonh

There is no difference in the tax relief or general rules on a stakeholder, personal pension, hybrid or full SIPP.

Each one has it's pros and cons (i.e. stakeholder is generally the cheapest, although some Pers Pens can be, but the stakeholder fund range is usually weak). Its a case of making sure you go with the right type of pension to suit your investment needs.

If you are not going to invest in a wide spread of investments and utilise the features and options of a SIPP then the charges are likely to be higher than on a personal pension or stakeholder (assuming like for like distribution channels - in your case, that looks like execution only basis). So, an execution only stakeholder would see annual managment charges potentially as low as 0.4%. A personal pension using stakeholder funds would be similar but using a mix of stakeholder and external funds could see it considerably cheaper than a SIPP.

It really comes down to where you want to invest your money. If you want Korea, India, Latin America and a whole load of other specialist or limited investment areas then a SIPP or fund supermarket pension can be the best option. If you want access to the major funds but not necessarily the funds where you would have 1-3% of your portfolio in then a personal pension could be cheaper.

Personal pensions also benefit from no switching charges and no initial charges (assuming mono charged PPP). So, if you are going to be a frequent fund switcher, the charges on the HL SIPP are likely to be higher than the alternatives (see Wombats thread on HL's creation charge in the investment section that is currently on first page).

There is nothing wrong with SIPPs, PPPs or SHPs providing you get the one that matches your needs.

I havent got a SIPP and I havent arranged a SIPP so far this year (despite doing over 100 pensions this year). The alternatives have offered better value for money. Dont be suckered into this SIPP is best as there are an awful lot of people out there who have gone with SIPPS when personal pensions or even stakeholder would have been better. There are also people that are better with the SIPP option and use the features and options.

darren72

Thank you very much for your detailed reply.

Where would be the best place to start looking for more info on personal pensions and stakeholder pensions ??

Thanks again

sabelu

Has Martin put together a factsheet of best buys etc?

dunstonh

SIPPs are now regulated so it would be interesting to see how a "best buy" could be assessed without falling foul of FSA rules. Plus, a lot of the charges on a SIPP are linked to the investments you hold within the SIPP. One SIPP provider may be best priced on property. Another on direct investment and another on investment funds. One may offer good terms for drawdown whilst another doesnt. There is rarely one best option.

jamesd

The best buy depends on what funds you want to invest in and if you want to use funds at all, plus whether you want investment advice and ongoing investment rebalancing once a year or if a fund manager changes. There is an article on getting the best deal once you have selected the pension you want but I notice for example that Cavendish Online don't give the full fund choice available for the Scottish Widows personal pension so it might not be the full version. Or it might be an error in their web site, I haven't asked them. Dunstonh's firm seems pretty competitive for both advice and non-advice cases but maybe not the absolute cheapest.

EdInvestor

The cheapest online DIY SIPPs are run by

https://www.sippdeal.co.uk
https://www.alliancetrust.co.uk
https://www.h-l.co.uk

These SIPPs don't cover commercial property - for that you pay considerably more - but do offer the main investment choices - shares, gilts, equity, bond and property funds, ETFs, investment trusts etc. and also offer income drawdown.

They don't offer advice.