SIPP, Hargreaves Lansdown and Funds

Ginger_Red

Thanks - that's what I'd figured.

I'd just gathered a handful of underperforming pensions from previous jobs, and put all the money into the two HL MM funds while I did my research.

Now it's just a case of having the confidence to use what I've learned, with all the useful information on here, and make all the decisions for myself.

It's a lot more enjoyable, and hopefully rewarding in the long run anyway.

Thanks again for your help.

ymgirl

Hope I am asking in the right place. I have a DBS (final salary) scheme from a previous employer - value c £60k. I want to transfer to a SIPP to invest in commercial property. I have been researching and came across the AJ Bell Platinum - does anyone have any thoughts on this SIPP please?

Vincenzo

ymgirl wrote: »

Hope I am asking in the right place. I have a DBS (final salary) scheme from a previous employer - value c £60k. I want to transfer to a SIPP to invest in commercial property. I have been researching and came across the AJ Bell Platinum - does anyone have any thoughts on this SIPP please?

Hi there. Sorry i do not know the scheme but am surprised to see you are transferring funds out of a final salary scheme. I would expect £60k would have to grow quite substantially to be able to make up for the loss of income guaranteed from your employer's scheme.

EdInvestor

A.J.Bell is a very well regarded SIPP provider - I am a satisfied customer of one its less upmarket offerings.Excellent customer service, a revelation compared with your average life company.

Theodor

cheerfulcat wrote: »

yes, you can set up a monthly dd. I'm not sure how they set up the purchase though.



No, that's fine, it's just that you asked about cash in your op :-)





wibble, thanks to your question i had a good think about my relationship with hargreaves lansdown - seeing all my annoyances in print made me wonder what's keeping me there! So i've looked at squaregain's sipp. They offer a choice of two trustees, epml and sippdeal. The charges for the are comparable to hl's - in fact, if you take away the set-up fee of £120 ( which they are waiving for accounts opened before 6 april ) they work out considerably cheaper. You can get the same initial discounts on funds, much cheaper dealing fees, a higher rate of interest on smaller amounts of cash and of course the squaregain portfolio tool which is excellent - a comprehensive overview of transactions is available, and transactions can be sorted by type so for instance you can see all the dividends paid or all the purchases of a particular share...i am moving my account today! Thanks!

Cheerfulcat

:t:t:t:t:t:t:t:t:t:t:t

stphnstevey

If my salary is £5720, can I make a pyment of £5720 to a personal pension and the goverment will add tax reelief or is it £4461 and the goverment makes it upto £5720 with tax relief?

purch

The second one

wary

Here's my position. I'm 47 and have had a mixture of permanent jobs and freelance via my own limited company. I'm finally waking up to the fact that I've heavily under-invested in pensions although I don't know the full extent of by how much. For 2009/10, I'm at the stage where any money I take out other than via pension contributions will take me into the top tax bracket although I can leave it there. I've had the odd dabble in the stock market in recent months and have been very bad at it, largely because I can't just forget about my investments for the medium/long term but have to check them every 5 mins and get freaked by the slightest loss, often buying/selling at the wrong time. Nevertheless I do feel there is money to be made from buying shares at this stage and am considering further purchases for a 2-3 year hold, maybe longer.

I've started doing some research on this website and have come across SIPPs for the first time, although I'm still struggling to grasp the concept. My question is this. Can I effectively do my share-dealing in my one/two targetted companies via a SIPP, effectively getting the 40% relief but tying it up for a minimum 7-8 years as well as paying any fees (etc) and then basic rate tax?

Or would I better off paying this money from my company as additional (I'll be making some anyway) contributions into my existing personal pensions, hence leaving the investing to the so-called experts, and if I want to invest a modest amount in shares off my own bat then do that from my personal savings, losing interest (currently offsetting my mortgage) and possibly incurring CGT on anything over £9600 that is outside of an ISA, ensuring that I disable my access to all share price sites for at least a couple of years?!?

Si1

Does anyone know:

I have seen that Hargreaves Lansdown currently allow you to pay into their SIPP in the HSBC FTSE index fund, at 0.25% AMC, without ANY additional charges (they levy a whopping 0.5% additional charge on some funds, but not this one)

Anyone who uses a Hargreaves Lansdown SIPP already - are there any other charges I need to worry abut, anything I have overlooked? hidden charges? or if I stick to this fund would I really only pay the 0.25% and nothing else??

LongTermLurker

Si1 wrote: »

Does anyone know:

I have seen that Hargreaves Lansdown currently allow you to pay into their SIPP in the HSBC FTSE index fund, at 0.25% AMC, without ANY additional charges (they levy a whopping 0.5% additional charge on some funds, but not this one)

Anyone who uses a Hargreaves Lansdown SIPP already - are there any other charges I need to worry abut, anything I have overlooked? hidden charges? or if I stick to this fund would I really only pay the 0.25% and nothing else??

There are several FTSE trackers from HSBC, but looking at the "FTSE 100 Index Acc" units, that has the 0.25% AMC you mention. The problem is you're only focusing on cost and maybe aren't realising WHY it's so cheap. Basically, the FTSE tracker investments are picked by a computer, and the "whopping 0.5%" funds (how much are you investing - will 0.25% extra add up to a large amount?) are picked by a human, who may or may not be good at his job.

Just looking at the 5 year performance of the HSBC FTSE100 acc compared with the Schroeder UK Alpha Plus acc shows that the former had a total return of 26.25% and the latter 65.28% - past performance does not indicate, etc etc. After rebates, the Schroder fund has an additional AMC of 1% compared to the tracker, but over 5 years has achieved growth of 150% of the HSBC value. Also note that a "whopping 8.5%" of the HSBC fund is invested in themselves.

I don't think there would be any hidden charges, but trackers don't look great value to me. I'd rather pay a bit more for a human.

Edit - I'm not suggesting the Shroder fund over any others, it was just the first one that came to mind which covers some of the biggest UK companies.