SIPP, Hargreaves Lansdown and Funds

MrMicawber_2

With £200 per month 4 funds doesn't look unreasonable at all and helps spread the risk. On a 35 year view you will probably be looking to increase the number of funds after a few years just to add more balance and spread. I'm not sure I would put 20% into a single country Emerging Market fund though (Jupiter India) at the starting point . Personally, if you want to have 20% in an emerging markets fund I would look for something a bit more generalist (Aberdeen or Lazard perhaps). You have probably spotted that Neptune Global Equity has a quite high proportion invested in Emerging Markets as well.

All personal opinion and who knows what the future holds.

MrMicawber_2

Has anyone used H-L new portfolio analysis tool yet. You have to be a customer - I think it's really useful.

DUS

Hi,

I moved to the UK at the end of last year and plan to start investing into a SIPP soon.

Although I very much enjoy living over here and have no plans to return to Germany anytime soon, I cannot rule out to move to another country in a couple of years time. That said, I have a question about the annual fee, SIPP providers like H+L charge.

Assuming my job would force me to move abroad within the next 1-2 years, it seems that I would end up with paying the annual fee (0.5% + VAT @H+L, depending on the chosen investment) till I retire in 20 - 25 years time. And that despite not being able to use the SIPP account. Is there anyway to avoid annual fees if you move abroad and cannot put more money into the SIPP?

Cheers and best,
DUS

EdInvestor

DUS wrote: »

Is there anyway to avoid annual fees if you move abroad and cannot put more money into the SIPP?

Move to a SIPP which doesn;t charge an annual fee.

DUS

EdInvestor wrote: »

Move to a SIPP which doesn;t charge an annual fee.

Ok, sounds like a good idea. As I just started looking into SIPPs I hadn´t yet come across (or simply hadn´t noticed) companies that do not charge a fee. But given your reply, I am sure there a quite a few.

So, if I went for the H+L that would only leave me with the transfer out fee which isn´t a problem.

Thx!

DUS

dunstonh

DUS wrote: »

Ok, sounds like a good idea. As I just started looking into SIPPs I hadn´t yet come across (or simply hadn´t noticed) companies that do not charge a fee. But given your reply, I am sure there a quite a few.

So, if I went for the H+L that would only leave me with the transfer out fee which isn´t a problem.

Thx!

DUS

Are you going for direct investments in your SIPPs or investment funds?

DUS

dunstonh wrote: »

Are you going for direct investments in your SIPPs or investment funds?

Probably both, but will more likely focus on funds. Why?

DUS

dunstonh

DUS wrote: »

Probably both, but will more likely focus on funds. Why?

DUS

Funds have charges within the fund (annual management charge typically). Changing SIPP provider isnt going to change that. Indeed, SIPPs are typically the most expensive way to purchase funds. Stakeholders and personal pensions are cheaper but if you use funds then you are always going to be paying fees.

If you want to avoid fees then use shares and investment trusts.

DUS

dunstonh wrote: »

If you want to avoid fees then use shares and investment trusts.

Thx, that´s a very good point!

DUS

EdInvestor

And ETFs if you want trackers.