SIPP, Hargreaves Lansdown and Funds

dunstonh

SIPPs are not designed for the small investor. You would almost certainly have been better off with a personal pension or even a decent stakeholder. Personal pensions have no limit per fund so you could have had 10 funds easily.

i would of thought HL buy that many funds everyday that the fund managers minimum kind of goes out of the window and this would be HL's rules

That is their business decision. Some other fund supermarkets dont have that restriction on their funds but a few do. They probably arent interested in small funds as they are generally unprofitable.

wellsie82

dunstonh wrote: »

SIPPs are not designed for the small investor. You would almost certainly have been better off with a personal pension or even a decent stakeholder. Personal pensions have no limit per fund so you could have had 10 funds easily.
quote]

when you say decent stakeholder who/what company would you mean?

also, what if i wanted to take advantage of some of the emerging funds? im only talking about putting 5-10% into them if i was to do this as i understand these are high risk but L&G who im currently with only offer a certain number of funds, and i dont see many of them being "top" funds

dunstonh

when you say decent stakeholder who/what company would you mean?

There are some rubbish ones that offer just 1 or 2 funds. The better ones offer around 20-30. However, a personal pension is often the best bet as these can offer 100-1000 funds.

also, what if i wanted to take advantage of some of the emerging funds? im only talking about putting 5-10% into them if i was to do this as i understand these are high risk but L&G who im currently with only offer a certain number of funds, and i dont see many of them being "top" funds

L&G is fine for the inexperienced investor. Cheap, good funds and when used in a limited sector allocated portfolio, it does come out well. However, they are not a decent personal pension provider. Good stakeholder but not personal pension.

sabelu

Whats the difference between contracted rights and GMP?

EdInvestor

Protected rights is what you get when you convert a pension which was originally a contracted out final salary pension with a GMP into a personal pension.The GMP portion of the total pension is then called protected rights.

sabelu

Thanks Ed.

And I believe that there may be a change in legislation shortly to enable this to be moved to a SIPP etc?

rorydog_2

Thought it was going to be a simple process to transfer two ppensions (Standard Life and Scottish Widows old style) into a SIPP as we seem to manage our ISA much much better that on returns on these pension. Only pay a small amount in each month which is totally wiped out and worth less than the year before. Can't do worse can we? However, reading this forum it seems it is not going to be that simple.

Want to buy mainly funds, some shares and ETFs. Funds only worth 20K. As over fifty was going to darw 25% and gradually pay back in. Understand that is not allowed. Need every panny to count at this late stage. Who will we go for?

EdInvestor

rorydog wrote: »

Want to buy mainly funds, some shares and ETFs. Funds only worth 20K. As over fifty was going to darw 25% and gradually pay back in. Understand that is not allowed. Need every panny to count at this late stage. Who will we go for?

With only 15k suggest you pick either funds and go with HL or shares/ ETFs and go with Sippdeal. If every penny counts, the latter will be cheaper as long as you aren't a frequent trader.

rorydog_2

Do you know if we are allowed to feed the 25% back in over a period of time thus gaining tax relief again? We sold our house in December so feasible we used new funds?

EdInvestor

rorydog wrote: »

Do you know if we are allowed to feed the 25% back in over a period of time thus gaining tax relief again? We sold our house in December so feasible we used new funds?

No, that's called recycling and it's not allowed. You can use other funds.Park the TFC in something clearcut like N&SI index linked certs (tax free) in case the Revenue wants to see what happened to it.