SIPP advice

Gatser

rrf494g wrote: »

I've used the on-line company SippDeal and found them low cost and efficient. They even have real people in Manchester who will talk to you, if ever the on-line service is not clear. As has been said above, the responsibility to mange the Sipp is with you, but then the yearly, and dealing, costs are rock-bottom.

Yes...I have a SIPPDEAL account... aimed at GILTS & ETF's

...but SIPPDEAL is not so good for researching/purchasing funds so thats why I am looking at the SKANDIA CRA.

Gatser

JamesU wrote: »

Depends on what you are putting together I guess. But maybe need to compromise on fees for execution only for the benefit of reduced costs in the longer term. The Skandia CRA annual fees are low and as far as I understand for example, the Blackrock trackers on the platform have some of the lowest TERs and no commission, whereas others have trail commission that could be potentially rebated. So a good option, and suppose chances of success depend on compromise with upfront fees, whatever they should be. That said, I do remember one OP on threads some time back having real difficulties finding a suitable fee based IFA, which I find surprising given it is not that long before the implimentation of RDR.

JamesU

An IFA is asking me (1) to detail "exactly what you want us to execute"
(2) and saying that "... usually the fund terms are “retail” rather than “wholesale”" therefore trail commission may not be rebateable...

As far as (1) I would think I am just requesting them to set up a SKANDIA CRA....or am I missing something?
(2) Any hints/tips on this statement

Ignorance is bliss.... ?:)

JamesU

Gatser wrote: »

An IFA is asking me (1) to detail "exactly what you want us to execute"
(2) and saying that "... usually the fund terms are “retail” rather than “wholesale”" therefore trail commission may not be rebateable...

As far as (1) I would think I am just requesting them to set up a SKANDIA CRA....or am I missing something?
(2) Any hints/tips on this statement

Ignorance is bliss.... ?:)

I am stuck on the issue of retail vs wholesale and do not want to comment on this in case I get it wrong. I looked into HL vs Skandia CRA vs Sippdeal as a possibility to make up a future shortfall on a deferred pension with a switch from RPI to CPI. The details I read were on Candid Money which compared the various charges in legible terms and the best options to aim for. I will have a look for the links and post them back here when I find them.

JamesU

Gatser

JamesU wrote: »

I am stuck on the issue of retail vs wholesale and do not want to comment on this in case I get it wrong. I looked into HL vs Skandia CRA vs Sippdeal as a possibility to make up a future shortfall on a deferred pension with a switch from RPI to CPI. The details I read were on Candid Money which compared the various charges in legible terms and the best options to aim for. I will have a look for the links and post them back here when I find them.

JamesU

Thanks for that JamesU.

Yes... I was starting to think that there was no need for the "expense" of a SIPP when the SKANDIA CRA offered such good fund choices and a drawdown facility... but with the extra hassle and cost of having to go through an IFA (even if I can get it as execution only) .... I am now wondering if I should just revert back to my original plan of using the H-L Vantage SIPP.

Is there a SIPP that rebates trail commission?

JamesU

Gatser wrote: »

Thanks for that JamesU.

Yes... I was starting to think that there was no need for the "expense" of a SIPP when the SKANDIA CRA offered such good fund choices and a drawdown facility... but with the extra hassle and cost of having to go through an IFA (even if I can get it as execution only) .... I am now wondering if I should just revert back to my original plan of using the H-L Vantage SIPP.

Is there a SIPP that rebates trail commission?

Skandia vs HL here (no trail rebate on Sipp) :
http://www.candidmoney.com/questions/question216.aspx

Note also: comments on initial commission on CRA.

Sippdeal here (no trail rebate)
http://www.candidmoney.com/candidreviews/review19.aspx

Skandia here (the info on trackers)
http://www.candidmoney.com/questions/question227.aspx

In this last link, it looks like it might be possible to rebate the trail to pension on CRA but have to find an IFA happy to work on this basis. As discussed earlier, if you are fee based at outset, this might be possible but DIY without advice of course.

Take on board what you have said earlier, it is a lot of effort but I guess worth it for the right product if it suits objectives. Saying that I find all of this a bit of a minefield myself and still do not understand retail vs wholesale.

JamesU

Wobblydeb

Just re-visited this thread, and have to say thank you all for continuing the discussion and giving those of us considering SIPP food for thoughts.

The linked articles are my reading matter for this weekend I think!

JamesU

Have finished my reading on Skandia CRA (not a Sipp). For anybody interested, some summary info below while the facts are still in my head. Obviously my layman opinion only:

Costs: From Skandia T+Cs, (pages 11 and 12). Potential costs that can be incurred through IFA are: initial charges or phased charges on fund purchase (up to 4.5% and 5.6% respectively), switch commission charges (up to 3%), monthly trail commission from the AMC to IFA (up to 1.5%). Then annual AMC on funds and trackers between 0.1-1.75% (% trail taken from this)

http://www.skandia.co.uk/sis/pdfs/SK6410.pdf

Other costs: Approx £55 initial setup and then annually (increasing with inflation) to Skandia.

Funds: Good range of UTs (but check against personal allocation preferences anyway) and competitively priced trackers from Blackrock, HSBC and L+G (but check if range of trackers is sufficient against personal allocation preferences). Full fundlist with AMCs etc on website and link here.

http://www.skandia.co.uk/funds/sis_fundlist.pdf

Setup: From various sources in links above and some relevant MSE links below (see Dunstonh's thorough comments), it seems that the average annual commission costs would be for example a 1.5% - 3% initial and 0.5% trail through IFA. Alternatively try to find an IFA happy to work on execution only, fee based and no advice, and expect to pay in the region of £500 upfront and have no commission charges and rebate of trail to pension (presumably by reduction of AMC).

https://forums.moneysavingexpert.com/discussion/comment/35449991#Comment_35449991
https://forums.moneysavingexpert.com/discussion/comment/35685345#Comment_35685345
https://forums.moneysavingexpert.com/discussion/comment/35344613#Comment_35344613
https://forums.moneysavingexpert.com/discussion/comment/34121293#Comment_34121293
http://forums.moneysavingexpert.com/showpost.html?p=35418917&postcount=517


JamesU

dunstonh

I am going to tweak you on a couple of points.

Costs: From Skandia T+Cs, (pages 11 and 12). Potential costs that can be incurred through IFA are: initial charges or phased charges on fund purchase (up to 4.5% and 5.6% respectively

Skandia has no initial charge. Only what the IFA agrees with you. This can be up to 4.5%. So, the range is 0 to 4.5%. The 5.6% applies to the older (and almost certain due to close soon) Skandia Life pensions schemes and not Skandia Investment Solutions.

switch commission charges (up to 3%),

again, Skandia have no charge here. Only what you agree with the IFA. nil to 3% is the range.

monthly trail commission from the AMC to IFA (up to 1.5%). Then annual AMC on funds and trackers between 0.1-1.75% (% trail taken from this)

They have two trail methods. Either natural trail commission which is included in the retail AMC or nominated trail commission was is set by the IFA but charged explicitly. Any natural commission on the funds is then rebated.

Other costs: Approx £55 initial setup fee to Skandia.

There is no set up charge. I think you may be referring to the £52.32 investor charge. That is an annual charge per investor irrespective of amount or number of accounts you have with them (i.e. ISA, unit trust and pension is still £52.32 a year).

it seems that the average annual commission costs would be for example a 1.5% - 3% initial and 0.5% trail through IFA. Alternatively try to find an IFA happy to work on execution only, fee based and no advice, and expect to pay in the region of £500 upfront and have no commission charges and rebate of trail to pension (presumably by reduction of AMC).

If you can get execution only the fee can be collected via the pension (so effectively you can get tax relief on the fee). Plus, if its nil trail commission then that is rebated into the plan (and buys more units in your funds).

its the fund based trail rebates and access to the blackrock trackers which are the key benefits to a DIY investor. They do have an online fund switch facility so once set up, you wont need to use the IFA again unless its for a single premium addition.

JamesU

dunstonh wrote: »

I am going to tweak you on a couple of points.

Appreciate the tweaks and corrections. Skandia investor charge ammended in previous post above for accuracy.

Did not realise there was further differentiation with a natural and nominated trail, thanks for clarifying.

JamesU

Gatser

Now, having researched the Alliance Trust SIPP I am going off the Skandia Personal Pension.

The AT SIPP does not need IFA involvement (and Costs!) to set up and you can buy Funds, Shares, EFT's, GILTS, Cash Deposits etc....
PLUS Funds have discounted upfront charges & a rebate on Fund AMC's

So....why not?
What have I missed?